The China Pakistan Economic Corridor (CPEC) originally envisioned a total investment of $62 billion spanning from FY2015 to FY2030. To date, $27.4 billion worth of projects have materialized, with the energy sector, encompassing power generation, coal mining, and transmission lines, constituting a substantial 76% share.
Within this ambit, power generation initiatives, including fossil fuel and renewable energy, aimed to amass a capacity of approximately 11 GW. Presently, around 5,520 MW of energy projects have been successfully accomplished. Remarkably, a significant portion of these projects centers on coal-based power plants, as disclosed in the annual report on renewable energy released by the Sustainable Development Policy Institute (SDPI).
Prominent among the completed projects under the CPEC umbrella are the 1,320 MW Sahiwal Coal-fired Power Plant, 1,320 MW Coal-fired Power Plant at Port Qasim, Karachi, 1,320 MW China Hub Coal Power Project in Hub, Balochistan, 660 MW Engro Thar Coal Power Project, 1,000 MW Quaid-e-Azam Solar Park in Bahawalpur, 50 MW Hydro China Dawood Wind Farm in Gharo, 100 MW UEP Wind Farm in Jhimpir, Thatta, 50 MW Sachal Wind Farm in Jhimpir, Thatta, 100 MW Three Gorges Second and Third Wind Power Project, Matiari to Lahore ±660 KV HVDC Transmission Line Project, and 720 MW Karot Hydropower Project in AJK/Punjab.
Projects currently under construction include the 1,320 MW SSRL Thar Coal Block-I (2×660MW), 330 MW HUBCO Thar Coal Power Project, 330 MW HUBCO ThalNova Thar Coal Power Project, 884 MW Suki Kinari Hydropower Project in KP, and a 300 MW Coal-Fired Power Project in Gwadar.
Additionally, CPEC initiatives under evaluation comprise the 1,124 MW Kohala Hydropower Project in AJK, 700.7 MW Azad Pattan Hydropower Project in AJK/Punjab, 1,320 MW Thar Mine Mouth Oracle Power Plant, 50 MW Cacho Wind Power Project, and 50 MW Western Energy (Pvt.) Ltd. Wind Power Project.
In line with its commitment in the NDC 2021, Pakistan has pledged not to finance any new coal plants. The nation's financial challenges, including a Balance of Payment (BoP) crisis, mounting circular debt, and excessive capacity, have already led to a reduction in future CPEC investments, exemplified by the shelving of the 1,320 MW Rahim Yar Khan coal power project in 2019.
In November 2020, Pakistan took the decisive step of suspending coal-based power projects in the planning and initial construction phases, demonstrating its dedication to climate action. This move was formalized in alignment with the country's revised 2012 NDCs and was prompted by a report from an independent nine-member committee, formed in 2019-20 to review independent power project contracts, including those within the CPEC framework. These contracts were deemed to offer returns higher than global standards, thus necessitating the shift toward more sustainable alternatives.