Muneeb ur Rehman

Attaining energy security is a formidable challenge for the Asian region with its growing economies and increasing energy demands. However, China's Belt and Road Initiative (BRI) has emerged as a significant driver in enhancing energy security across Asia. Talking to WealthPK, Mahmood Khalid, Executive Director at the CPEC Centre of Excellence, Islamabad, said that limited financial resources and growing populations in the Asian countries were making it difficult for the governments to meet the growing energy demands. Based on data provided by the Green Finance and Development Centre at Fudan University, Shanghai, in the first six months of the current year, investments and contractual commitments related to solar and wind energy projects constituted nearly 42% of China's involvement in the global energy sector abroad. In 2022, such engagements accounted for 26%, and in 2021, 15%.

Source: Green Finance and Development Centre

Khalid said that the BRI focuses on building critical energy infrastructure to connect energy-rich regions to energy-deficient regions. "The BRI encourages cross-border energy trade and integration, reducing vulnerability to supply disruptions in the Asian region." He said the Trans-ASEAN Gas Pipeline is a landmark project in this regard as it connects gas-rich countries like Myanmar and Malaysia with gas-deficient countries such as Thailand, helping balance regional energy resources.

Similarly, he said the Siberian pipeline project served as a catalyst for ensuring energy security in the Asian continent. "This pipeline transports natural gas from Russia to China, ensuring a stable energy supply mechanism," he added. Khalid further said that the BRI funds are supporting hydropower projects in Laos and Cambodia, increasing their energy independence and stability.

Additionally, he also enlisted the energy security projects taken under the CPEC, which is the critical component of the BRI. "The Karot Hydropower Project, a rock-filled gravity dam with an installed capacity of 720MW, is playing a pivotal role in the provision of clean and cost-effective energy to the national grid. This project is financially supported by the Chinese state-owned enterprise, China Three Gorges Corporation." Moreover, he said 7,000 solar panels have been installed in Gwadar to provide uninterrupted power supply to communities that have long been suffering from the prolonged energy crisis. The CPEC official said that the watershed development projects launched under the BRI had gone a long way in addressing the energy security challenges faced by the Asian countries.

Credit: INP-WealthPk