The government has embarked on an ambitious plan to expand the power generation capacity of the country by 300% by 2040. The Indicative Generation Capacity Expansion Plan (IGCEP) 2018-2040, approved by the National Transmission Dispatch Company, was finalized after consultations with the provinces and federal agencies and other private stakeholders. The plan is to increase generation to 111,000 MW from existing 33,500 MW and phase out all the thermal power plants and rely on less expensive sources of fuel to reduce power costs.
The government has made the power generation targets according to 3 different GDP projections, which are as follows:-
- At 4.5% GDP growth rate the targeted power production would be 65,100 MW.
- At 5.5% GDP growth rate the targeted power production would be 80,500MW.
- At 7% GDP growth rate the targeted power production would be 111,000 MW.
According to the plan, by the year 2040 the hydropower generation projects would provide 29,000 MW, 20,000 MW would be produced from coal-based plants, 4300 MW would be generated through nuclear power plants, 16000 MW would be generated through renewable sources, such as the windmills and solar plants and 5000MW would be generated through imported coal-based generation. The plan focuses on using low-cost indigenous fuel sources to decrease production costs and would phase out thermal-based power plants by 2040.