The Asian Development Bank (ADB) has approved a loan of $300 million tofinance the construction of a 300 MW hydropower plant that will increasePakistan’s share of clean energy and improve its energy security.
The plant that will be built on the Kunhar River near Balakot in KhyberPakhtunkhwa (KP) and will be commissioned by 2027, is to add 1,143gigawatt-hours of clean energy annually to the country’s energy mix whileenhancing the energy sector’s reliability and sustainability. It will alsoincorporate seismic strengthening and climate-proofing measures in itsoperations.
“Pakistan is highly vulnerable to climate change, with water resources andenergy particularly at risk from floods, droughts, high temperatures, andother extreme weather events,” said the ADB Principal Energy Specialist,Adnan Tareen.
He added, “In line with Pakistan’s climate change adaptation and mitigationpriorities, this climate-resilient hydropower plant will boost thecountry’s clean energy generation while effectively utilizing its vastwater resources”.——————————
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Although Pakistan is rich in hydropower resources, only around 16 percentof its identified hydropower potential has been harnessed. Its power sectoris reliant on imported fuel-based power generation and is burdened with astressed transmission and distribution network. Therefore, to balance theenergy mix and reduce its dependence on imported fuel, the government hascommitted to increasing its untapped renewable energy potential from water,the sun, and wind.
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The Balakot Hydropower Plant will also generate economic activity andimprove the skills of the local communities. During construction, theproject will generate more than 1,200 jobs, about 40 percent of which willbe sourced locally and will provide livelihood skills development forwomen. A community development program will help to improve livelihoodopportunities for the affected households and adjacent communities,including women and the vulnerable segments of the population.
This will help to build economic resilience and improve the capacity of theaffected people to cope with climate change, natural disasters, and otherrisks.——————————
The plant will substantially increase the revenue of the state-ownedPakhtunkhwa Energy Development Organization (PEDO), which is responsiblefor operating hydropower plants in KP. It will also help to reduce theaverage daily load shedding in the province and serve the national demand.
The government will invest $175 million in the project and has requested aloan of $280 million in project co-financing from the Asian InfrastructureInvestment Bank (AIIB) as well.
