Early Retirement of Coal-Fired Power Plants in Pakistan

China has made significant investments in Pakistan’s energy sector under the China-Pakistan Economic Corridor (CPEC), including coal-fired power plants (CFPPs) that have substantially contributed to the country’s electricity supply. These power plants were initially developed to mitigate the energy access challenges; however, due to misalignment between economic and energy policies, many of these plants are now underutilized, leading to rising capacity charges. With the growing global momentum toward low-carbon development, both countries face the shared challenge of aligning energy infrastructure with climate goals.

Currently, Pakistan is experiencing overcapacity in the energy sector, with many coal plants operating below their optimal levels. Since much of the coal fleet is less than five years old and power purchase agreements are backed by sovereign guarantees, discussions around early retirement are complex and require careful consideration.

On Tuesday, July 8 from 3:00 PM – 5:00 PM PKT | 6:00 PM – 8:00 PM CST | 6:00 AM – 8:00 AM EDT join us and the Sustainable Development Policy Institute for a workshop convening a diverse group of stakeholders from Pakistan and China to assess the technical, financial, policy and social barriers of early retirement.

The workshop aims to provide recommendations and foster dialogue among stakeholders to explore viable pathways for retiring coal plants in Pakistan early, balancing environmental, economic, and social priorities.