Thar Coal Locking Pakistan Into Unsustainable Capacity Payments

  • File ACJCE
  • File Jun 26, 2020


Two more Thar coal power projects have reached financial close so far in 2020 as the high capacity payments of such fossil fuel-based plants threaten to become financially unsustainable. Pakistan has now asked China for easier repayment terms on 12GW of CPEC power projects totaling US$30bn of investment, hoping to lower the burden of capacity payments. Meanwhile, the economic downturn caused by COVID-19 is now increasing the risk of Pakistan being burdened by overcapacity which will make the financial issues within the power sector even worse.

The study titled ‘Thar Coal: Locking Pakistan into Unsustainable Capacity Payments’ is authored by Simon Nicholas from Institute for Energy Economics and Financial Analysis (IEEFA) and launched by Alliance for Climate Justice and Clean Energy.

View the complete study here.