Electricity: China comes to Pakistan's aid again

Among the hopelessness of prolonged electricity shortages that have hit the economy badly, China comes to Pakistan's aid again. But where are Pakistan's western friends and friendly investors?

Beijing will provide Pakistan two much needed nuclear power plants, adding to the existing Chinese-built nuclear power capacity.

The plants will help Pakistan cover part of the huge energy deficit. As the demand is spiralling, Islamabad plans to produce at least an additional 8,000 megawatts by 2025. Pakistan is seeking foreign direct investment in power from all countries and sources, as its economy, particularly the textile-related and value-added units suffer a great deal.

The installed nuclear power capacity in fy-2010 is 562 mw, and the generation is 2,521 gigawatt (GW) hours, according to Hydrocarbon Development Instit-ution (HDIP), Ministry of Petroleum and Natural Resources. The overall hydroelectric installed capacity is 6,481 megawatts (MW), and the generation is 23,535 GW hours. The installed capacity of thermal electricity is 12,707 MW and generation is 39,342 GW hours, according to HDIP.

The consumption in fiscal year 2010 is 37.3 million tonnes of oil equivalent, which is met by a mix of natural gas, oil, electricity, coal and liquefied petroleum.

China, this week, held out its firmest government confirmation yet of its pans to build two nuclear power reactors for Pakistan. The Chinese Foreign Office Jiang Yu said, China plans to help Pakistan expands its Chashama nuclear energy complex in Punjab by building two reactors in addition to the one already operating, and another under completion.

At the same time, China National Nuclear Corporation says it is, separately, engaged in negotiations to build a 1-Gigawatt nuclear reactor for Pakistan. It will be supplied by state-owned China National Nuclear Corporation (CNNC). Qiu Jiangang, Vice President CNNC reportedly said, both sides are in discussion over our company exporting a 1-gigawatt nuclear pant to Pakistan.

China and Pakistan are happy with the fact that Beijing may see no need to get approval for the two new reactors from the Nuclear Suppliers Group (NSG) of 46 countries, which is an international council of governments. The group aims to ensure that nuclear exports are not diverted to non-peaceful purposes.

China has already notified the International Atomic Energy Agency (IAEA) about the relevant details and invited IAEA to exercise safeguards and oversight of this project, according to the spokesperson. The reactors are being provided under a 2003 agreement. But, both Islamabad and Beijing have, in the past, described such reservations as unfounded and unnecessary in view of the fact that Pakistan, itself a nuclear power since May 1998, has an excellent performance record in the nuclear field.

The new Chinese reactors will be of 300 MW each. Chinese companies have already been selected to build the plants and they have signed with the Pakistanis.

Pakistani Ministry of Foreign Affairs spokesman Abdul Basit, says We have an ongoing civilian nuclear cooperation agreement with China which is, according to our respective international obligations for peaceful purposes under he IAEA safeguards.

The two new reactors don't require NSG approval, as they are coming under a memorandum of understanding signed prior to China joining the NSG, he said.

Completion of these and other nuclear reactors apart, the demand is so huge that all sorts of energy generation equipment will have to be installed for years�C starting immediately. Here is the potential for foreign investment and companies making all types of equipment, ranging from thermal to hydel, and nuclear to natural gas.