Working Paper – Cost of Electricity Generation in Pakistan – Comparison of Levelized Cost of Electricity of CPEC Coal Plants with Oil and Natural Gas Based Plants Commissioned in 2010-14
This paper compares the cost per kWh of oil and gas based power projects in Pakistan commissioned during 2010-14 with coal-based power projects approved under the CPEC agreement after updating all costs to June 2017. It shows that the average long run cost of power generation of oil and gas based plants is higher than the average long run cost of coal-based plants. This result continues to hold when environmental costs are taken into account but the cost differential is reduced from Rs1.44 per kWh to
Rs0.22 per kWh provided all plants operate at 85 percent of their generation capacity. Accounting for security costs for CPEC projects, makes coal based power generation possibly more expensive than oil and gas based generation.