Pakistan Ramps Up Nuclear Power to Boost Low-Carbon Electric Power

[Riaz Haq]

Construction of 1,100 MW nuclear power reactor K2 unit in Karachi has been completed by China National Nuclear Corporation, according to media reports. A similar reactor unit K3 will add another 1,100 MW of nuclear power to the grid, bringing the total nuclear power installed capacity of Pakistan to 3,630 MW (12% of total power) by 2022.  Hualong One reactors being installed in Pakistan are based on improved Westinghouse AP1000 design which is far safer than Chernobyl and Fukushima plants.  In addition, Pakistan is also generating  9,389  MW (about 28% of total power) of low-carbon hydroelectric power in response to rising concerns about climate change.

Karachi Nuclear Power Plant (KANUPP):

With the placement of the outer containment shell, K2 is  now ready for containment and heat tests. It is scheduled to begin operations in 2020. It’s built using the Chinese HPR1000 technology, which features a dual containment design, with the outer containment providing additional protection for the primary containment.

Karachi Nuclear Power Plant K2 Unit Under Construction. Source: CNNC

KANUPP is Pakistan's first nuclear power plant where construction started in 1966 in Karachi. The plant was connected to the national grid on 18 October 1972. KANUPP, a pressurized heavy water reactor of 137 MW gross capacity was constructed by Canadian General Electric under a turnkey contract. In 1976, vendor support for spare parts and fuel was withdrawn. The PAEC undertook the task of indigenously manufacturing the required spare parts and nuclear fuel on an emergency basis and, since 1980, KANUPP has successfully operated using fuel manufactured by the PAEC, according to International Atomic Energy Agency (IAEA). Here is an except of IAEA's 2018 report on nuclear power in Pakistan:

"Despite the keen interest of Pakistan in building additional nuclear plants, it took more than two decades before the second nuclear power plant started construction. This delay was due to Pakistan’s lack of access to international nuclear technology coupled with a lack of indigenous industrial infrastructure. The construction of Pakistan’s second nuclear plant, C-1, a pressurized water reactor (PWR), was made possible in 1993 with the help of the China National Nuclear Corporation (CNNC). The plant was connected to the national grid on 13 June 2000 and has a gross capacity of 325 MW. A third nuclear power plant, C-2, with 325 MW gross capacity started commercial operation on 18 May 2011. The fourth unit, C-3, started commercial operation on 6 December 2016. It has a gross capacity of 340 MW and a similar plant, C-4, sited beside C-3, was connected to the grid on 25 June 2017. The first concrete pours to mark the start of construction of Karachi Coastal Power Project, a project containing two nuclear units, K-2 and K-3 (1100 MW each), based on an improved PWR design, were 20 August 2015 and 31 May 2016, respectively."

Pakistan Power Generation Fuel Mix. Source: Third Pole

International Energy Agency:

International Energy Agency (IEA) has recently warned that "steep decline in nuclear power would threaten energy security and climate goals". "With nuclear power facing an uncertain future in many countries, the world risks a steep decline in its use in advanced economies that could result in billions of tonnes of additional carbon emissions", the IEA has said.

Pakistan Among 31 Countries Operating Nuclear Power Plants

Nuclear is the second-largest low-carbon power source in the world today, accounting for 10% of global electricity generation. It is second only to hydropower at 16%, according to International Energy Agency (IEA). Pakistan nuclear plants are expected to generate 3,630 MW  (12% of total power vs 10% global average) by 2022.  Pakistan is also generating  9,389  MW (about 28% of total power vs 16% global average) of low-carbon hydroelectric power in response to rising concerns about climate change.

Nuclear Plant Safety Concerns:

Activists in Pakistan have raised serious concerns about potential risks from K2 and K3 plants to the population in Karachi. Are such concerns valid?

The worst nuclear disaster in the history of nuclear power generation was at Chernobyl in present day Ukraine. One of the key reasons was that the Chernobyl plant did not have the fortified containment structure common to most nuclear power plants elsewhere in the world. KANUPP K-2 and K-3 reactors have two containment shells: primary and secondary. It is noteworthy that Bhopal Union Carbide disaster was history's worst industrial disaster, far bigger in terms of human toll than the Chernobyl disaster.

China signed a technology transfer deal with the United States in 2006 that put the Westinghouse AP1000 reactor design at the “core” of its atomic energy program. Chinese reactor manufacturers also resolved to build advanced third-generation technology in their safety review after the 2011 Fukushima nuclear plant disaster.

Unlike Fukushima where underground emergency cooling system failed due to flooding, the Hualong One design stores water above the reactor that can be gravity-fed to keep it cool if the pumps fail in the event of meltdown. The Chinese HPR1000 reactors employ multiple redundant generators and cooling systems to lower meltdown risk.

Hydropower Generation:

The biggest and most important source of low-carbon energy in Pakistan is its hydroelectric power plants. Pakistan ranked third in the world by adding nearly 2,500 MW of hydropower in 2018, according to Hydropower Status Report 2019.  China added the most capacity with the installation of 8,540 megawatts, followed by Brazil (3,866 MW), Pakistan (2,487 MW), Turkey (1,085 MW), Angola (668 MW), Tajikistan (605 MW), Ecuador (556 MW), India (535 MW), Norway (419 MW) and Canada (401 MW).

New Installed Hydroelectric Power Capacity in 2018. Source: Hydrowo...

Pakistan's Water and Power Development Authority (WAPDA) says commissioning of the 108-MW Golen Gol 2, 1,410-MW Tarbela 4th Extension and 969-MW Neelum Jhelum hydropower projects in 2018 boosted its hydroelectric generating capacity of 9,389 MW, an increase of 36% in just one year, according to Hydro Review. Hydropower now makes up about 28% of the total installed capacity of 33,836 MW as of February, 2019.   WAPDA reports contributing 25.63 billion units of hydroelectricity to the national grid during the year, “despite the fact that water flows in 2018 remained historically low.” This contribution “greatly helped the country in meeting electricity needs and lowering the electricity tariff for the consumers.”

Top 20 Countries by Newly Installed Hydropower Capacity. Source: IHA

Pakistan has the potential to generate 59,000 MW of hydropower, according to studies conducted by the nation's Water and Power Development Authority (WAPDA). Currently, it's generating only 9,389 MW of hydroelectric power, about 16% of the estimated potential. Media reports indicate that China is prepared to finance and build another 40,000MW capacity as part of the development of the Northern Indus Cascade region which begins in Skardu in Gilgit-Baltistan and runs through to Tarbela, the site of Pakistan’s biggest dam, in Khyber-Pakhtunkhwa province.

Pakistan has made only a small contribution to climate change through carbon emissions.  And yet, it counts among the dozen or so nations considered most vulnerable to its damaging effects. These include rising temperatures, recurring cycles of floods and droughts and resulting disruption in food production.

Summary: 

Construction of 1,100 MW nuclear power reactor K2 unit in Karachi has been completed by China National Nuclear Corporation, according to media reports. A similar reactor unit K3 will add another 1,100 MW of nuclear power to the grid, bringing the total nuclear power installed capacity of Pakistan to 3,630 MW (12% of total power) by 2022.  Hualong One reactors being installed in Pakistan are based on improved Westinghouse AP1000 design which is far safer than Chernobyl and Fukushima plants.  In addition, Pakistan is also generating  9,389  MW (about 28% of total power) of low-carbon hydroelectric power in response to rising concerns about climate change. One of the ways Pakistan can help reduce carbon emissions is by realizing its full nuclear and hydroelectric power potential by building more nuclear plants and dams. The development of the Northern Indus Cascade region to generate 40,000MW of hydropower is a significant part of this effort.

Related Links:

Haq's Musings

South Asia Investor Review

Nuclear Power in Pakistan

Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

Massive Oil and Gas Discovery in Pakistan: Hype vs Reality

Renewable Energy for Pakistan

Digital BRI: China and Pakistan Building Fiber, 5G Networks

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[Riaz Haq]

Pakistan Embarks on Construction of Its Largest Nuclear Power Plant

https://www.devdiscourse.com/article/headlines/3210144-pakistan-emb...

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.

[Riaz Haq]

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.

[Riaz Haq]

World Bank set to approve $1bn loan for Dasu project expansion

https://www.geo.tv/latest/588799-world-bank-set-to-approve-1bn-loan...

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.

[Riaz Haq]

Pakistan Oxygen to Build $4.6M Hydrogen Facility at Port Qasim

https://fuelcellsworks.com/2025/04/22/green-investment/pakistan-oxy...


The company stated the new facility “will strengthen our position in the hydrogen market and provide efficient, reliable gas solutions to key industrial clients.” The project is also expected to play into wider trends of decarbonization and energy diversification as industries seek lower-carbon inputs.

This development adds to the region’s momentum around hydrogen infrastructure. Just 70km away, Oracle Power has been working since 2021 on a proposed 400MW green hydrogen facility in Thatta, Sindh. While a final investment decision has been delayed, Oracle has completed feasibility studies and signed agreements with China Power to move forward with development and operations.