Panel Paper:
Implications of Using Indigenous Coal Reservoirs for Energy Generation in Pakistan.
Friday, April 6, 2018
Mary Graydon Center - Room 245 (American University)
*Names in bold indicate Presenter
The Thar coal Project entails massive expenditures. Phase I, the three and a half year process of coal
mining and power project establishment in Block II of Thar Coal area, will cost $ 1.6 billion. This will
be financed based on a 75:25 debt to equity ratio. The $1.6 billion investment plan involves these
contributions: Est. $900 million from Chinese banks, $300 million from a Pakistani banking
consortium and $400 million from other sponsors. Pakistan currently has less than 50% of the
electricity production than is demanded. With hours of unscheduled load-shedding in the domestic
sector and partial shutdown of industry due to power outages, the power energy crisis is one of the
most critical challenges facing Pakistan. Considering future GDP projections and its direct relation
with energy sufficiency, new power projects are on top of the government’s agenda and a coherent
national energy policy incentivizing energy related projects is underway. Pakistan is the sixth largest
country in the world by population and according to conservative estimates, population is expected to
go beyond 190mn by 2050. As of now, 40% of the population lacks access to electricity and only 50%
of the total energy demand is met. The government of Pakistan is also developing measures to
increase power generation capacity in order to meet the energy demands of future. Recent discoveries
of untapped coal fields in the south of Pakistan have convinced the government to invest in coal-based
generation. Traditional methods of using coal as an energy source have been entertained, however, this
is tough because coal has accounted for 44% of global CO2 emissions and as a result international and
local regulatory requirements for coal have become more stringent. The paper explores UCG
technology as a sustainable source of energy generation for Pakistan evaluating this relatively new
technology from a technical, environmental and economic rationale.
mining and power project establishment in Block II of Thar Coal area, will cost $ 1.6 billion. This will
be financed based on a 75:25 debt to equity ratio. The $1.6 billion investment plan involves these
contributions: Est. $900 million from Chinese banks, $300 million from a Pakistani banking
consortium and $400 million from other sponsors. Pakistan currently has less than 50% of the
electricity production than is demanded. With hours of unscheduled load-shedding in the domestic
sector and partial shutdown of industry due to power outages, the power energy crisis is one of the
most critical challenges facing Pakistan. Considering future GDP projections and its direct relation
with energy sufficiency, new power projects are on top of the government’s agenda and a coherent
national energy policy incentivizing energy related projects is underway. Pakistan is the sixth largest
country in the world by population and according to conservative estimates, population is expected to
go beyond 190mn by 2050. As of now, 40% of the population lacks access to electricity and only 50%
of the total energy demand is met. The government of Pakistan is also developing measures to
increase power generation capacity in order to meet the energy demands of future. Recent discoveries
of untapped coal fields in the south of Pakistan have convinced the government to invest in coal-based
generation. Traditional methods of using coal as an energy source have been entertained, however, this
is tough because coal has accounted for 44% of global CO2 emissions and as a result international and
local regulatory requirements for coal have become more stringent. The paper explores UCG
technology as a sustainable source of energy generation for Pakistan evaluating this relatively new
technology from a technical, environmental and economic rationale.
