Access to abundant and cheap electricity is essential for running a modern competitive economy. The rapidly growing power demand for generative AI data centers makes it even more important. The best way to ensure it is in switching to renewable energy sources. That is why Pakistan is in the midst of a renewable power boom. It is ramping up generation of clean energy with solar, hydro, wind and nuclear power. 13 gigawatts of solar panels have been imported in the first half of this year alone. Another 10 gigawatts of hydroelectric power projects are under construction for completion by 2030, bringing the total hydropower capacity to 20 gigawatts. Pakistan's total nuclear energy production capacity rose to 3,620 MW, when the country's sixth nuclear power plant opened two years ago. Pakistan and China have recently signed a $4.8 billion deal to build another 1,200 MW nuclear power plant. There are 36 private wind projects producing approximately 1,845 MW in the country. Pakistan is phasing out old fossil fuel power plants. It has negotiated the termination of power purchase contracts with five independent fossil fuel power producers (IPPs), including Hubco, the largest IPP currently operating in the country. More negotiations are underway to terminate additional IPP contracts. Payments to these IPPs are a huge burden on the nation’s economy and ordinary consumers alike. There have been violent protests against high electricity rates across the country.
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| Renewable Energy. Source: Easy-Peasy.AI |
A number of auto companies have announced plans to manufacture electric vehicles. Pakistani automobile joint ventures with Chinese automakers BYD and Changan have recently launched several all-electric and plug-in hybrid models of automobiles in Pakistan. Honda Atlas Cars Pakistan Limited has announced plans to build a hybrid electric vehicles plant in the country. Other major brands like Toyota, Haval, and Hyundai are already offering similar models in the country. It all began with the 2019 electric vehicle policy approved by the government of Prime Minister Imran Khan to incentivize the electrification of the auto industry. Pakistan EV policy goal is to achieve 30% of new cars sales, 50% of new 2-wheeler and 3-wheeler sales and 30% of new truck sales by 2030. By 2040, the target is 90% of all new vehicle sales to be electric. The main incentive is the reduction of sales tax from 17% for internal combustion engine (ICE) vehicles to 1% for all-electric (EV) vehicles.
Pakistan is currently experiencing a huge economic drain in terms of fossil fuel imports. In the first two months of the current fiscal year, Pakistan's oil import bill increased by 23% compared to the same period in 2023. Paying for huge amounts of imported coal, gas, and oil in US dollars has become disastrous, particularly after 40% depreciation of Pakistani currency over the last two years. Switching to cheap renewable sources will have a salutary effect on the country's climate and economy. It will help grow the nation's exports by increasing its exporters' competitiveness. It will also make it easier to manage inflation and reduce the need for recurring IMF bailouts.
The GenAI revolution is another factor that will dramatically increase global power demand. Wall Street investment bank Goldman Sachs forecasts that the new high-performance AI data centers alone will grow electricity demand by 160% by 2030. Pakistan needs to prepare for it if it wants to be competitive in this brave new world of generative artificial intelligence (Gen AI).
Related Links:
2021: A Banner Year For Tech Startups in Pakistan
Is Pakistan Ready For AI Revolution?
Digital Pakistan 2022: Broadband Penetration Soars to 90% of 15+ Population
STEM Enrollment in Pakistan Exceeds One Million
Digital Public Infrastructure in Pakistan
Solar Power Boom in Pakistan
Pakistan at 75
Growing Presence of Pakistani Women in Science and Technology
Riaz Haq's Youtube Channel
18 comments:
Dominion Plans for Long-Term Virginia Data Center Power Demand, Connects with PJM on Transmission Lines | Data Center Frontier
https://www.datacenterfrontier.com/energy/article/55236892/dominion-plans-for-long-term-virginia-data-center-power-demand-connects-with-pjm-on-transmission-lines
Dominion Energy Virginia this month has released a comprehensive, long-term regional plan to meet growing power demand, and jointly proposed several new large transmission projects with First Energy and American Electric Power (AEP) to strengthen electric reliability across the 13-state PJM region over the next decade.
Dominion Energy said such means will include expansion and modernization of the power grid, deployment of energy storage technologies, and newly implemented energy efficiency programs to maintain grid reliability while meeting the unprecedented growth in power demand.
The utility primarily provides regulated electricity service to 3.6 million homes and businesses in Virginia, North Carolina, and South Carolina, and regulated natural gas service to 400,000 customers in South Carolina.
"We are experiencing the largest growth in power demand since the years following World War II," observed Ed Baine, President of Dominion Energy Virginia. "No single energy source, grid solution or energy efficiency program will reliably serve the growing needs of our customers. We need an 'all-of-the-above' approach, and we are developing innovative solutions to ensure we deliver for our customers."
Dominion noted that the IRP is not a request to build any specific project, but rather a long-term planning document based on a snapshot in time of current technology, market information and load projections. Nearly 80% of the plan's incremental power generation over the next 15 years is carbon-free, including more solar and offshore wind generation, more energy storage, and more nuclear resources.
On Oct. 15, Dominion Energy Virginiareleased a comprehensive, long-term regional plan to meet growing power demand, much of it driven by data centers, with reliable, affordable and increasingly clean electricity.
In its 2024 Integrated Resource Plan (IRP), as filed on Oct. 15 with the Virginia State Corporation Commission (SCC) and the North Carolina Utilities Commission (NCUC), Dominion laid out multiple portfolio options to meet rising power demand through "significant investments in new power generation from every source."
Google joins Big Tech's move into nuclear power, and other top energy stories
https://www.weforum.org/agenda/2024/10/google-joins-big-tech-move-into-nuclear-power-and-other-top-energy-stories/
This round-up brings you the key stories from the energy sector over recent weeks.
Top energy news: Google invests in nuclear power; IEA says new 'age of electricity' is coming; China leading clean energy roll-out.
For more on the World Economic Forum’s work in the energy space, visit the Centre for Energy and Materials.
1. Google joins Big Tech's move into nuclear power
Google has signed an agreement to buy power from small modular nuclear reactors, in a move the company has described as a "world first".
The deal with the start-up Kairos Power will help Google meet the increasing demand for electricity created by artificial intelligence.
It will bring up to 500MW of carbon-free power to US electricity grids, the company says, with the first reactor planned to come online by 2030, followed by additional deployments through 2035.
Small modular reactors are advanced reactors with a capacity of up to 300MW per unit – about a third of the power produced by traditional nuclear reactors. With a smaller footprint, these plants can deliver power to areas unsuitable for larger nuclear facilities, are more cost-effective to construct, and can be deployed incrementally to meet rising energy demand.
Big tech firms have signed several agreements with nuclear power companies in recent weeks, with Microsoft agreeing on a deal that will see the reopening of a plant in Pennsylvania, and Amazon buying a nuclear-powered data centre, Reuters reports.
Nuclear power accounts for about 10% of global electricity generation today, and has "significant potential" to contribute to decarbonization in some countries, including those in the G7 and China, the International Energy Agency (IEA) says.
But it will require overcoming hurdles, from mistrust to underinvestment, writes Rafael Mariano Grossi, Director General at the International Atomic Energy Agency (IAEA).
2. IEA: 'Age of electricity' will follow fossil fuel peak
Fossil fuel demand will peak by the end of the decade, followed by a new age of electricity, the IEA has said in a release accompanying the latest edition of its annual World Energy Outlook report.
In the second half of this decade, ample or surplus supplies of oil and natural gas would likely lead to lower prices and could enable countries to dedicate more resources to clean energy, moving the world into an "age of electricity", according to IEA Executive Director, Fatih Birol.
However, for clean energy to meet accelerating demand, greater investment in new energy systems – especially in grids and energy storage – is needed, the agency said, adding: "Today, for every dollar spent on renewable power, 60 cents are spent on grids and storage, highlighting how essential supporting infrastructure is not keeping pace with clean energy transitions."
The World Energy Outlook 2024 examines three "overarching and inter-related themes", which it describes as follows:
"Energy security, corresponding to the longstanding core of the IEA’s mandate as well as the imperatives of the present given escalating risks in the Middle East.
The prospects for clean energy transitions, which have accelerated rapidly in recent years, but which need to move much faster to meet climate goals.
Uncertainty, an ever-present factor in any forward-looking analysis but particularly visible this year.”
Pakistan to reform power distribution after IMF meetings, minister says
Owais Rawda explores what the most recent request for IMF climate funding means for power sector reform.
https://www.power-technology.com/comment/pakistan-to-reform-power-distribution-after-imf-meetings-minister-says/
At last week’s International Monetary Fund (IMF) Annual Meetings, Pakistan’s finance minister Muhammad Aurangzeb requested $1bn in funding from the IMF’s Resilience and Sustainability Trust (RST) to help mitigate the country’s climate risks and accelerate its energy transition. Established in 2022, the RST offers vulnerable low- and middle-income countries long-term concessional cash for climate-related spending.
Pakistan’s power sector circular debt, driven by inefficiencies in the power distribution network, crossed Rs2.66tn ($9.5bn) in May, according to a debt report released by the government’s power division. Meanwhile, citizens have suffered significant and frequent power outages in recent years, leaving millions without electricity.
The government’s faulty capacity payment contracts with independent power producers (IPPs) have come to light as the primary source of these challenges. Interest rates borne from private IPPs have not only worsened the debt crisis but spiked consumer tariffs, making electricity unaffordable.
In light of Aurangzeb’s request, coupled with multiple IPPs terminating their contracts with the government, the South Asian nation is now likely to announce significant reforms.
“These IPP payments had a detrimental effect on the overall quality of life for our citizens,” Awais Laghari, Pakistan’s minister for energy’s power division, tells Power Technology. “It is imperative that necessary steps are taken to resolve the issue.”
Without specifying the plans, he claims that the power division is currently evaluating options “through which the fiscal burden shared by the consumer, whether through taxes or debt repayments, can be optimised through various interventions that improves household economics and consumption at the same time”.
Laghari says that there are also plans to “unbundle electricity” and create a competitive market for energy, citing the recent introduction of an independent system and market operator (ISMO) as a step in this direction.
“This will ensure that a B2B [business-to-business] market for electricity can develop, which can eventually evolve into a B2B2C [business-to-business-to-consumer] market thereby providing greater options for consumers and lower prices through a competitive process,” he says.
The minister adds that the role of renewables in reforming the country’s power market will be imperative, “given their price advantage”. He believes that their ability to generate cheap electricity will “always put them ahead in any competitive market regime, making them critical to the success of the market.”
Following the IMF meetings, Laghari says that the government plans to “move forward actively” with the privatisation of electricity distribution companies and that “necessary improvements in governance are already underway”.
He believes that privatisation can enhance the efficiency of these companies, allowing them to remain a key player in the power market, which in turn will result in more affordable prices for consumers.
“Similarly, we continue to focus on investment in transmission to remove constraints so that lower cost electricity generated in the South can be moved across the country and overall consumer tariff can be reduced.”
About the author: Owais Rawda is a regulatory policy researcher that has written about the energy and technology industries.
Dear Sir
Pls don't mind but I have some questions, I just saw a news that the CEO of NVIDIA was invited into an AI summit which was held in India.
The question is that why these types of huge and mega summits and events are not held in Pakistan?
Doesn't this show that the priority of Pakistani government is nothing but to keep hold and control on the technology and IT and keep it limited within the domain and boundaries of Punjab province?
I am sure if Indian governments of Congress would have been following this model of Pakistani governnent then i am sorry to say they might be lagging behind in scientific and technological advancements.
I am sorry to say what are the priorities of the people of Pakistan and specially of the government of Pakistan?
Who is the role model of Pakistani people except of PM of Turkey and the the famous actor of Turkey ?
Or if the people in Pakistan have any role models besides sports and show biz people ( whom I respect the most) then that is only Dr. Abdul Qadri Khan .
It is true that Dr. Abdul Qadri Khan contributed greatly to the nuclear programs of Pakistan but Sir pls don't mind the question is that even India might be having such nuclear scientists who have contributed in the defence of their country but why don't the common citizens specially students of India hold them as their role models?
Sir Abdul Kalam who was the President of India, he was known as the missile master of India and he contributed to the defence of the country before and after becoming the President of India but I have hardly seen or heard any Indian student or Indian citizen who holds him as their role model or feels proud over him. What Indians feel proud about is their economic growth and IT industry.
Do we as Pakistanis have any role model to follow?
Sir don't you think that such great IT professionals like the CEO of NVIDIA are invited to AI summit in India where as we never think of holding such great and mega events in Pakistan so that professionals and students can attend such events and learn from them and gain experience about latest technologies that have entered the market or are being invented?
Dear Sir
Mashallah very good news, a robotics competition was held in Italy and some CS or IT students from Pakistan who attended that competition have secured 2nd position in it.
Another good news multinet internet service provider in Pakistan has launched a data science platform called " Nunomics " which provides analytics as a service to professionals.
Pakistan Aims to Slash Power Prices for EV Charging Stations
https://finance.yahoo.com/news/pakistan-aims-slash-power-prices-110800128.html
(Bloomberg) -- Pakistan is looking to stimulate demand for electric vehicles by reducing power prices at charging stations, as the country attempts to kickstart the decarbonization of its transport sector.
The South Asian nation will create demand “by bringing down drastically the prices for new sectors including EVs,” Power Minister Awais Leghari said in an interview. The government is discussing a pricing structure and the incentive would apply to all charging and battery swapping stations for small cars, two-wheelers and three-wheelers, he added.
More than half a dozen auto companies, led by Chinese brands, have launched EV models in Pakistan this year. Chinese EV maker BYD’s local partner Hub signed an agreement with the country’s largest fuel retailer, Pakistan State Oil, this month to jointly establish an EV charging network across the nation.
Meanwhile, the country has seen a drop in electricity demand while prices have soared and the government has had to secure loans from the International Monetary Fund.
As part of the $7 billion loan requirements, the government is working on a flurry of reforms to restore the energy sector’s viability. The nation is in talks to revise purchase contracts with local power companies and reprofiling debt with Chinese lenders.
Prime Minister Shehbaz Sharif’s administration also wants to move away from the existing model of the government being the sole buyer of electricity, and create a wider market, Leghari said.
The independent market operator system will be functional by March and broader trade is expected to pick up within a year, he said.
Dear Sir
Exactly cheap sources of electricity are very important specially for factories and industries where goods and items are being manufactured and produced specially in bulk quantity.
The price of goods which are sold in the market depend on the cost of production and the charges of the electricity that is being used or consumed during the production or manufacturing of goods adds to the cost of production.
If the electricity charges will be low then less charges of electricity will add to the cost of production and the price of the goods being sold in the market will be low.
Optimizing Pakistan's economy by renegotiating power purchase agreements
December 05, 2024
Haneea Isaad
https://ieefa.org/resources/optimizing-pakistans-economy-renegotiating-power-purchase-agreements
Developing countries in Asia and Africa, riddled with excess capacity payments and a surplus of generation capacity, are using contract renegotiation to lower their economic burden and conserve the foreign exchange. In Pakistan, Independent Power Producers (IPPs) have allegedly made excessive profits by under-reporting efficiency gains and over-invoicing, thus necessitating complex power purchase agreement (PPA) renegotiations. Contracts with five IPPs have already been terminated, while 18 others face a possible conversion to a take-and-pay basis.
Renegotiations require both parties to offer concessions to arrive at a deal. For the five IPPs with terminated contracts, two publicly listed companies may have waived some receivables while taking the government’s offered settlement. Lalpir Power Plant, a 362 megawatts (MW) furnace oil-based plant located in Muzaffargarh, took a haircut of PKR7 billion. HubCo’s 1292MW furnace oil-based power plant was offered PKR36.5 billion in compensation, almost PKR20 billion less than the total company valuation as of June 2024.
Renegotiation of concession agreements is not an unusual practice in the power sector, especially under destabilizing economic conditions such as macroeconomic shocks. Ghana, like Pakistan, has struggled with energy sector reforms prompted by rising power sector debt and unpaid dues. The country recently underwent a similar situation, successfully renegotiating contracts with five IPPs, including debt structuring and conversion to a take-and-pay system.
The government in Pakistan has attempted PPA renegotiations in 1998, 2012, 2020, and now in 2024. IPPs allege that repeated contract renegotiations and coercive tactics will hurt investor confidence and future expansion opportunities in the power sector.
An examination of the PPA terms reveals that the incentives offered to IPPs have been overly generous with backstopped payment guarantees, dollar indexation, and high return on equity allowances, contributing to Pakistan’s ever-rising power sector circular debt.
Considering that the IPPs under review have paid off their debts and have earned reasonable returns on equity, contract termination or conversion to a take-and-pay basis is a reasonable proposition given Pakistan’s persistent economic struggles and foreign exchange shortage.
While renegotiation could allow the government to save scarce economic resources, the IPPs may also have a chance at quick compensation for unpaid dues or the ability to sell power to secondary markets once Competitive Trading Bilateral Contract Market (CTBCM) reforms are operationalized. However, the negotiation process should be commercial and transparent to ensure optimal outcomes.
Pakistan’s solar boom challenges global energy assumptions - The Daily Climate
https://www.dailyclimate.org/pakistan-solar-boom-2670305662.html
Pakistan’s rapid adoption of solar energy reveals flaws in global energy demand forecasts and emphasizes the need for more adaptable energy models.
Noah Gordon and Daevan Mangalmurti report for Vox.
In short:
Pakistan has become the world’s sixth-largest solar market, with over 25 gigawatts of solar panels imported from China in three years, increasing its power supply by 50%.
High electricity costs and unreliable power grids are driving households and businesses to adopt solar, with systems often paying for themselves within two years.
Energy demand models consistently underestimate how quickly energy consumption rises as countries develop, leading to insufficient planning for cleaner energy infrastructure.
Key quote:
“Allah has given us this gift to get out of this mess.”
— Factory owner in Sialkot
Why this matters:
Underestimating energy needs in developing nations limits preparation for clean energy transitions, risking reliance on polluting sources. A realistic view of global energy demands is essential to equitably allocate resources and prevent further climate impacts.
Solar cells transform agriculture in Pakistan
https://www.warpnews.org/green-tech/solar-cells-transform-agriculture-in-pakistan-2/
Pakistani farmers reduce their energy costs by up to 80 percent by installing solar panels for irrigation.
Pakistan's imports of solar panels in the first nine months exceed the entire 2023 import, equivalent to 17 gigawatts of capacity.
95 percent of farmland in the Lahore area has switched to solar power.
Sharp reduction in energy costs for farmers
Mohammad Murtaza, a corn farmer in Pakistan, has reduced his energy costs by 80 percent by replacing diesel and grid power with solar panels for his irrigation pumps. The investment in solar panels pays for itself in less than a year. The reduced costs mean he can now grow three crops per year instead of two, reports Bloomberg.
Imports of solar energy products during the first nine months correspond to 17 gigawatts of capacity - more than a third of Pakistan's total energy capacity if everything is installed. Solar panels are now being advertised on billboards in major cities and during cricket matches.
Widespread use across the country
A satellite analysis by Norwegian Atlas showed around 400 solar power installations in Pakistan, mainly concentrated in industrial areas. According to solar panel distributors, the installations are evenly distributed between households, factories, and farms.
The solar panels provide financial relief for consumers and businesses who can afford to install them. For the country, it means reduced fuel costs for imports. Pakistan aims to double the share of renewable energy to 60 percent of the energy mix by the end of the decade.
Rapid development without subsidies
The development of solar energy in Pakistan stands out through its rapid growth without government subsidies, according to Jenny Chase, analyst at BloombergNEF. The price of solar panels has dropped so much that some farmers place them directly on the ground as the mounting frames now cost more than the panels themselves.
Pakistan Embarks on Construction of Its Largest Nuclear Power Plant
https://www.devdiscourse.com/article/headlines/3210144-pakistan-embarks-on-construction-of-its-largest-nuclear-power-plant
Pakistan is constructing its largest nuclear power plant, Chashma Nuclear Power Plant Unit 5, with a capacity of 1200 MWe. The Pakistan Nuclear Regulatory Authority has granted the necessary license. This Chinese-designed Hualong reactor will strengthen Pakistan's energy grid with safe, advanced technological features.
The regulatory approval follows a comprehensive review of safety assessments and operational plans submitted by the Pakistan Atomic Energy Commission earlier this year. This plant will be a third-generation Pressurized Water Reactor of Chinese Hualong design, enhancing energy provision with both active and passive safety features.
With an estimated cost of USD 3.7 billion and a projected lifespan of 60 years, this installation is expected to contribute significantly to Pakistan's grid, joining the already operational Karachi Nuclear Power Plants units 2 and 3.
From Arif Habib Securities:
Power generation in Dec’24 increased by 1% YoY to 7,800 GWh (10,484 MW). However, it remained 2% lower than the reference generation for the month. This brings total power generation for the 1HFY25 to 66,641 GWh (15,091 MW), reflecting a 3% YoY decline. Meanwhile, the cost of power generation fell by 10% YoY to PKR 9.09/KWh, which is also below the reference cost.
The decrease in generation is attributed to lower overall demand due to a drop in temperatures across the country.
https://x.com/arifhabibltd/status/1881308984545554843?s=61
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https://www.brecorder.com/news/40343586
During December, 2,065 GWh of electricity was generated from nuclear, which emerged as Pakistan’s leading source of electricity generation, accounting for 26.5% of the generation mix.
This was followed by hydel, which accounted for 22.8% of the overall generation, ahead of RLNG, which accounted for 20.7 of the power generation share.
Among renewables, electricity generation from wind sources saw a massive uptake, accounting for 3.4% of the generation mix in December 2024, as compared to 1.9% in the same month last year.
Generation from solar, and bagasse amounted to 1%, and 1.3%, respectively, of the generation mix.
China pledges $340mn to Pakistan's EV sector - Investment Monitor
https://www.investmentmonitor.ai/news/china-pledges-340mn-to-pakistans-ev-sector/
A group of Chinese firms has pledged to invest $340mn in Pakistan’s electric vehicle (EV) sector to expand their manufacturing plants and charging stations, according to local news outlets. The investment was announced at a press briefing inaugurating a joint project between Malik Group and China’s ADEN Group.
“If the company manufactures EVs in Pakistan, the Sindh government will purchase over 20% of the vehicles produced at the Karachi plant,” Sindh province’s Energy Minister Syed Nasir Hussain Shah.
Malik Group chairperson Malik Khuda Bakhsh said 30 charging plants are set to be delivered from China in the next ten days. The project seems to be moving fast as Bakhsh added that Pakistan aimed to “have the necessary infrastructure operation by the end of this year.”
ADEN Group, which has its global headquarters in Singapore, is expected to invest $90mn for 3,000 charging stations and $240mn for an EV production facility.
“By December, EV production will begin, with an annual output target of 72,000 units,” ADEN Group CEO Yasser Bhambani said. “We also plan to export vehicles to the Middle East, Sri Lanka and Bangladesh.”
Recently, Pakistan experienced some positive FDI growth. In August 2024, data from the State Bank of Pakistan showed there had been a monthly rise in FDI compared to 2023. It received $136.3mn in net FDI in July 2024, marking a 64% increase compared to July 2023.
Expanding US-Pakistan Relations Through Mining Projects
by Daniel Runde, the author of the book “The American Imperative: Reclaiming Global Leadership Through Soft Power”
https://static.jstribune.com/runde-expanding-us-pakistan-relations-through-mining-projects/
https://static.jstribune.com/runde-expanding-us-pakistan-relations-through-mining-projects/
Thus sourcing critical minerals must be treated as a US national security priority. China currently dominates critical mineral supply chains, refining 68 percent of nickel, 40 percent of copper, 59 percent of lithium, and 73 percent of cobalt globally. China also commands global battery cell production. Chinese supplies are vertically integrated, with battery manufacturers and smelters like CATL and Huyaou gobbling up mines across Asia, Latin America, and Africa at an unprecedented rate. This national security could be endangered.
The answer could partly lie in Pakistan. It has increasingly gone to China for loans, falling deeper into Chinese pockets, while the Biden administration chose to downgrade the US – Pakistanrelationship. Now, the incoming Trump administration can work to counter China’s control of the global critical mineral supply, by encouraging investments in Pakistani critical minerals while also reviving traditional security interests in the area.
Pakistan has vast critical mineral reserves. With the fifth largestreserves of copper in the world, it could become the “Saudi Arabia of copper” within the next 20 years. In the Balochistan region, the embattled Reko Dik mine, which underwent a long international arbitration process and only recently went under new contract, is home to one of the largest untapped copper and gold resources in the world, with an estimated 400 million tons of gold valued at over $1 trillion. There are also copper-gold deposits in less agitated regions like Gilgit-Baltistan, an isolated mountainous region at the intersection of the Himalayas, Karakorum, and Hindukush ranges
The Trump administration is arriving at an opportune time. On November 18, speaking at a USAID event, Pakistan’s Minister for Planning and Development, Ahsan Iqbal, expressed optimism about rekindling US-Pakistan relations based on “mutual respect and constructive engagement” under the incoming presidential administration.
Much of the U.S.-Pakistan relationship in recent decades has been mired in security and counterterrorism concerns. Baluchistan straddles Pakistan, Afghanistan, and Iran, and so a mineral-based US investment in Baluchistan could quickly develop into deepened US engagement with the Pakistani army, a group that has increasingly viewed normalized relations with the US as a way to distance itself from China. Through investments to develop regions like the one surrounding the Reko Dik mine, the US may simultaneously advance its interests in counterinsurgency and critical minerals.
Another obstacle in the supply chain of critical minerals is processing. There is little benefit to mining critical minerals domestically or from friendly countries if we then have to ship them off to be processed by countries like China, which dominates the processing stage. Today, China accounts for 44 percent of global copper smelting. Providing an American alternative is important. Baluchistan is home to the world’s largest deep seaport, Gwadar, which is operated by a state-run Chinese firm. If there was more investment to support increasing processing capacity in Pakistan itself, one could feasibly guarantee supply from mine to processor and then to market.
World Bank set to approve $1bn loan for Dasu project expansion
https://www.geo.tv/latest/588799-world-bank-set-to-approve-1bn-loan-for-dasu-project-expansion
Official reveals cost of phase I shot up by 190.1% to Rs1,700bn.
Rise attributed to various factors such including in land acquisition.
After erection of stage II, Dasu project would generate 4,320 MWs.
The World Bank (WB) is set to issue a fresh $1 billion loan for the first phase of the Dasu hydropower project, following the approval of a revised PC-1 with updated completion timelines, The News reported on Monday.
A senior official of the Economic Affairs Division (EAD) revealed that cost of the first stage of the project has shot up by 190.1% to Rs1,700 billion from Rs586 billion.
The increase in the cost is attributed mainly to a delay in land acquisition, security concerns and an increase of US dollar value by 178%.
“The project of stage I would generate 2,160 MWs. However, after erecting stage II of the project, it would generate 4,320 MWs. Dasu Hydropower Project is a run-river project on the Indus River located seven kilometres upstream of Dasu Town, District Kohistan (Upper), Khyber Pakhtunkhwa.
"The site is 74km downstream of the proposed Diamer Bhasha Dam site and 345km from Islamabad. The project will generate 4,320 MWs (12 Units @ 360 MW each) hydroelectric power with annual energy of 21,445 GWh and will be developed in two stages (Stage I and II).
"Stage I will generate 2,160 MW (06 Units @ 360MW each) with annual energy of 12,222 GWh. Stage I will be completed in five years. The WB has already given the loan of $588 million and also extended the guarantee leverage for generating $460 million from the international market.”
However, under the new financing for the project, out of $1 billion, $800 million loan is of International Development Association (IDA) and $200 million will be extended under the International Bank for Reconstruction and Development (IBRD).
Out of the IDA loan, Pakistan will attain $435 million at zero interest rate, $365 million at 5.83% interest rate, and get $200 million under IBRD at 6.13% interest rate.
"We have prepared the revised PC-1 of the project at the cost of Rs1,700 billion and will send it within a couple of days to the Planning Commission for its approval. After that, Water and Power Development Authority (Wapda) and WB will formally sign the $1 billion (loan)," the Ministry of Water Resources confirmed.
The land acquisition for the dam project was to be completed by 2014, but the process finished in 2021-22. Another reason for the escalating cost is the appreciation of US dollar by 178% to Rs278 from Rs100.
"The project was earlier scheduled to get completed by 2023-24 which would now be completed by 2027-28. The Economic Affairs Division has played a pivotal role in diverting the bank’s loan to the project of paramount importance. The WB has already extended $1 billion loan to Pakistan in other heads, but it was not being spent. This is why the loan has been re-purposed and diverted to the Dasu Dam with the approval of the executive board of the bank," added the ministry.
Pakistan Motorcycles - Facts & Data 2025 | MotorCyclesData
https://www.motorcyclesdata.com/2025/02/01/pakistan-motorcycles/
In 2024, although a bad start of the year, then recovered in the second half, 2-wheeler sales have been 1.3 million (+18.4%) but half a million far from the record.
The just born EVs segment is fast growing, reaching 46.364 sales (+123.4%) with new local start up joined by Yadeaand other chinese manufacturers.
Looking at the performance among the top manufacturers, the leader Honda reports sales up 15.5%, ahead of United Auto (+29.3%), Suzuki (+17.3%) and Road Prince (+13%).
‘The Solar Blitz’: How crisis-ridden Pakistan is leading the world on the ‘Solar March’ – pv magazine International
https://www.pv-magazine.com/2025/03/04/the-solar-blitz-how-crisis-ridden-pakistan-is-leading-the-world-on-the-solar-march/
From pv magazine Germany
In English, the term “The Blitz” refers to the attacks by the German Luftwaffe on Great Britain in 1940/41. In addition, the German word “Blitz” has found widespread use in English-speaking terminology to this day as a result of the reception of the term “Blitzkrieg”.
The term “Solar Blitz” has now been used to describe a “lightning-like” expansion of photovoltaics in Pakistan. The news magazine Fokus described this development as “the most extreme expansion ever”. If we stick to the military-tinged language, “Pakistan is leading the rest of the world on the solar march”.
What?
Unfortunately, in Germany, Pakistan is usually only associated with poverty and terror. As in many other regions, this is a very distorted image. In 2024, “poor” Pakistan will have installed as much new photovoltaic capacity as rich Germany? Over 16 GW? Many are seriously asking themselves. For the first time, media outside the industry are reporting on an extreme solar market development before it is more widely discussed and analyzed in the industry.
But what do the media reports refer to? Well, industry analyst Jenny Chase from BloombergNEF reported on developments in Pakistan in a TED talk, among other things. The video is well worth watching: https://www.youtube.com/watch?v=BsVhgta2WAo
Jenny Chase not only reports on the (notoriously very imprecise) export figures for solar modules from China to Pakistan in recent years, but above all on her analysis of satellite images to check the expansion of solar power. And lo and behold: Pakistan is suddenly teeming with photovoltaic systems. Despite all the remaining uncertainties, missing data and inaccuracies: there is a massive increase in solar power.
The local and global industry is amazed, wondering what is really happening and how better data can be collected. And at the same time, Pakistan could be a harbinger of similarly massive developments in countries that were previously not expected. Or it could show the eternally complaining slow-movers in countries like Germany what so-called developing countries can do.
“Anarchy on the internet”, “that won’t work with their network”, “where do they get the money from?”, “they don’t have any specialists for that” – these are the laments of those who are putting the brakes on and preventing such developments.
A “poor” country shaken by crises, a nuclear power and at the same time often dysfunctional, plagued by terror. A weak power grid, blackouts as the norm, extreme droughts and heat waves as a direct result of climate change, which lead to further blackouts. This is because the need for electricity for cooling is increasing rapidly, while conventional power plants no longer receive enough cooling water.
With 250 million people, Pakistan is the fifth largest country in the world in terms of population. With a gross domestic product of $338 billion, it ranks 46th, roughly comparable to the gross domestic product of the German state of Hesse with its 6.4 million inhabitants.
Pakistan's grid-connected electricity production and electricity consumption are given as around 110 TWh for 2024, but appear to be declining compared to 2023, which contradicts expectations of increasing demand, but could be a sign of the massive expansion of solar energy.
The annual global solar radiation in Pakistan is 1.5 to 2.5 times the German values. With the possible photovoltaic expansion of 17 GW in 2024 or around 26 GW in the two years 2023/24, depending on the situation in the country, 30 to 50 TWh of solar power could be produced per year.
I'm sorry, what? That would be at least 30% of total electricity consumption, and it was “solarized” in a maximum of two years?
‘The Solar Blitz’: How crisis-ridden Pakistan is leading the world on the ‘Solar March’ – pv magazine International
https://www.pv-magazine.com/2025/03/04/the-solar-blitz-how-crisis-ridden-pakistan-is-leading-the-world-on-the-solar-march/
The annual global solar radiation in Pakistan is 1.5 to 2.5 times the German values. With the possible photovoltaic expansion of 17 GW in 2024 or around 26 GW in the two years 2023/24, depending on the situation in the country, 30 to 50 TWh of solar power could be produced per year.
I'm sorry, what? That would be at least 30% of total electricity consumption, and it was “solarized” in a maximum of two years?
That is entirely conceivable and feasible:
If the regulators/grid operators can't do it, you can also generate XXL electricity yourself with solar energy.
Anyone can get involved — the technology forgives many mistakes and is largely “plug and play”. The Pakistanis are also used to bridging their grid problems with diesel generators or batteries of all kinds, and now both solar modules and batteries are cheaper than ever and available in large quantities. Thanks to the good relations with China, there are no tariffs standing in the way of taking advantage of the low prices in Pakistan. You just get started, put modules on the roof, in the field or wherever. If they fall over or fall down, you just install them again. Finally having permanent and cheap electricity is an extremely good motivation and, as already described, anyone can get involved, because solar is known to range from very small to atomic size.
You can see how quickly a “super grid” becomes obsolete when you combine production and consumption in a decentralized manner at thousands of locations. If the battery or generator is there anyway, there is no discussion about blackouts or anything like that. Impressive.
And yes:
If a poor country can do that — then many others will surely follow suit.
And for our (fear-filled) discussions in Germany, Pakistan can once again be a global example of what is possible if you really want it. Or if the citizens just do it. In Germany and the EU, for example, grids are only popular as long as energy generation cannot take over a 24/7 supply 365 days a year in a decentralized manner (usually redundant anyway) at a much cheaper rate.
The issue is already a reality in China: photovoltaic-wind power-storage hybrids on a gigawatt scale without a grid connection, but because their product is hydrogen and not clean electricity. This is now possible everywhere, even on a small scale, and Pakistan seems to be showing the way with warp speed and XXL.
I am excited to find out what we will learn about the details in Pakistan and how big the “solar flash” really is. For me, it is already one of the most exciting and inspiring stories in my 33 years as a solar entrepreneur. I hope that the people of Pakistan can continue to shape this great development for their own benefit and I am a little jealous of this “just do it, paperwork later” mentality.
Karl- Heinz Remmers — The author Karl-Heinz Remmers has been working as a solar entrepreneur since 1992, beginning with the planning and installation of solar systems and the production of solar thermal collectors. In 1996, he launched Solarpraxis, with its own specialist articles, book and magazine publishing and Solarpraxis Engineering, which is still active today. The successful start-ups also include the pv magazine Group, now overseen by well-known partners, and the conference series Forum Solar Plus. In addition to Solarpraxis Engineering, the focus of his activities today is on the development, planning, construction and operation of solar systems as IPP. He also carries out active political work within the framework of the Association of Energy Market Innovators (bne). More here: https://www.remmers.solar/ueber-mich/
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