Pakistan should pursue clean energy instead of relying on coal, report suggests

Published December 5, 2018
China is dumping its dirtier coal-fired systems on developing nations while leading the world in renewable resource systems. —Dawn Archives
China is dumping its dirtier coal-fired systems on developing nations while leading the world in renewable resource systems. —Dawn Archives

Cash-strapped Pakistan should pursue clean energy instead of relying on coal, nuclear and hydroelectric power, according to a report released on Wednesday urging the country's policymakers to rethink plans for building more coal-fired plants.

The Institute for Energy Economics and Financial Analysis, Ohio, said coal-fired power, one of the central pillars of Pakistan's energy deals with China, is a costlier and dirtier alternative to wind or solar energy, which China is also supplying but to a lesser degree.

Simon Nichols, an energy finance analyst with the institute, told The Associated Press that China is dumping its dirtier coal-fired systems on developing nations while leading the world in renewable resource systems that will find a market in developed countries as they move away from fossil fuels.

“There is no such thing as clean coal,” said Nichols.

Also read: Why Pakistan's power woes will get worse

China is putting Pakistan deeper in debt with planned coal-fired and liquefied natural gas plants, which will soon be outdated, he said.

China is financing major development projects in Pakistan, which is seeking an $8 billion bailout package from the International Monetary Fund as it faces dwindling foreign exchange reserves. In mid-October, Pakistan's foreign exchange reserves were $8.1 billion, which hardly covers the cost of two months of imports, according to the Institute.

Pakistan says China's up to $75 billion development project in Pakistan, known as the China-Pakistan Economic Corridor, is an effort to reconstruct the historic Silk Road linking China to all corners of Asia which will bring new prosperity to the country, where the average citizen lives on just $125 a month.

The sprawling package includes everything from road construction and coal-fired power plants.

“With renewable technology set to get cheaper in the future, a build-out of coal-fired power risks locking Pakistan into decades of outdated technology,” the report said.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Merging for what?

Merging for what?

The concern is that if the government is thinking of cutting costs through the merger, we might even lose the functionality levels we currently have.

Editorial

Dubai properties
Updated 16 May, 2024

Dubai properties

It is hoped that any investigation that is conducted will be fair and that no wrongdoing will be excused.
In good faith
16 May, 2024

In good faith

THE ‘P’ in PTI might as well stand for perplexing. After a constant yo-yoing around holding talks, the PTI has...
CTDs’ shortcomings
16 May, 2024

CTDs’ shortcomings

WHILE threats from terrorist groups need to be countered on the battlefield through military means, long-term ...
Reserved seats
Updated 15 May, 2024

Reserved seats

The ECP's decisions and actions clearly need to be reviewed in light of the country’s laws.
Secretive state
15 May, 2024

Secretive state

THERE is a fresh push by the state to stamp out all criticism by using the alibi of protecting national interests....
Plague of rape
15 May, 2024

Plague of rape

FLAWED narratives about women — from being weak and vulnerable to provocative and culpable — have led to...