Islamabad
The Asian Development Bank (ADB) Tuesday said it has approved a $300 million loan to finance the construction of a 300-megawatt hydropower plant that will increase the share of clean energy in Pakistan and improve the country’s energy security.
The plant will add 1,143 gigawatt-hours of clean energy annually to the country’s energy mix, enhancing the energy sector’s reliability and sustainability.
The plant, which will incorporate seismic strengthening and climate-proofing measures, will be built on the Kunhar river near Balakot in Khyber Pakhtunkhwa and commissioned by 2027, said the ADB in a statement.
“Pakistan is highly vulnerable to climate change, with water resources and energy particularly at risk from floods, droughts, high temperatures, and other extreme weather events,” said ADB Principal Energy Specialist Adnan Tareen.
“In line with Pakistan’s climate change adaptation and mitigation priorities, this climate-resilient hydropower plant will boost the country’s clean energy generation while effectively utilizing its vast water resources.”
Pakistan is rich in hydropower resources but only around 16% of its identified hydropower potential has been harnessed.
The country’s power sector is reliant on imported fuel-based power generation and is burdened with a stressed transmission and distribution network.
To balance the energy mix and reduce its dependence on imported fuel, the government has committed to increase its untapped renewable energy potential in hydro, solar, and wind.
Balakot Hydropower Plant will also generate economic activity and improve the skills of local communities.
During construction, the project will generate more than 1,200 jobs, about 40 percent of which will be sourced locally, and provide livelihood skills development for women.—TLTP
