Hydropower Development After Capping Capacity Generation

Energy investments under CPEC shifted to the hydropower sector. China and Pakistan have decided to shift the focus of energy sector investments under the China Pakistan Economic Corridor (CPEC) to hydropower development after capping capacity generation from conventional power projects at 11,110MW.

The energy projects included in the active CPEC list for implementation have either been completed or are in the final stages, having a total capacity of 11,110MW. The remaining capacity addition of about 6,000MW would be made in the hydropower development sector over the next phase.

A senior official at the Planning Commission said the two sides had originally decided that total capacity addition under CPEC would be around 17,100MW and this was part of the agreement on CPEC Energy Project Cooperation.

He said the Pakistani side realised as early as May last year, based on presentations of National Trans­mission and Despatch Company (NTDC), that enough capacity had been contracted for the fast-track implementation and the government should move the remaining investments in the power sector to avoid a capacity trap.

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