Energy Investment

Many countries of the Belt and Road Initiative are among the world’s major energy-producing and consuming countries. At the same time, they are mostly developing countries, with the requirement to continue expanding their energy markets. As many of China’s investment and financing projects along the Silk Road have climate effects, China plays a major role in supporting BRI countries in adjusting their energy structure and building climate resilient infrastructure, reducing carbon emissions and being more adaptable to climate change.

Case:  Jatigede Project

Type: Energy (Dam)

Country: Indonesia

Total investment: USD 40.45 million

Project brief:

Jatigede Dam, contracted by China's Synohydro Corporation and officially began impounding its reservoir in August 2015, is the second largest dam in West Java of Indonesia. The reservoir's catchment area encompasses 1,460 sq km. The dam is 110 m high, and its crest elevation is 265 m. The minimum water level elevation is 230 m, and the normal reservoir elevation is 260 m. The dam will hold a reservoir with a 1.06 billion cum storage capacity. It has carryover storage.

The 110-megawatt (MW) Jatigede hydropower plant is expected to become operational in 2020 with an annual generating capacity of 450 million kWh. If we calculate the current electricity price of the surrounding area as IDR800 per kilowatt-hour, the annual economic income it generates for Indonesia will stand at IDR360 billion or about USD40.45 million.[1]

Jatigede Dam

Image: Jatigede Dam in Sumedang, West Java. [photo: Kompas/Lucky Pransiska]

[1] China International Electronic Commerce Center, Ministry of Commerce,

Case: Dawood Wind Power Station (Pakistan)

Type: Energy (Wind Power Station)

Country: Pakistan

Total investment: 115 million dollars

Project brief:

Power shortages have been a major constraint on the entire Pakistani economy. Besides, Pakistan's electricity structure is unsound, with about 60% of the country's electricity supply coming from oil and gas. At present, Pakistan's renewable energy (excluding hydropower) generation volume is small, accounting for only 0.4% of the country's total electricity generation[1].

Pakistan's Dawood wind power project is one of the first 14 priority energy projects under the “Belt and Road Initiative” of the China-Pakistan Economic Corridor (CPEC). HydroChina, a subsidiary of PowerChina, acquired 93.89% of the equity of Pakistan Dawood power company and set up a China-Pakistan joint venture, HydroChina Dawood Power (Private) Limited (HDPPL), registered in Karachi to develop the Dawood wind farm. Dawood has an installed capacity of 49.5 megawatts and a total investment of 115 million dollars. The project adopts the BOO (Build-Own-Operate) pattern and has signed a 20-year power purchase agreement with the Pakistan Power Grid Corporation.

The Dawood wind power project in Pakistan provided 200 new jobs for local residents during its construction. After completion, the project will generate 130 million kilowatt-hours of electricity annually, which can meet 100,000 Pakistani homes’ needs and ease the country’s electricity shortage. At the same time, compared with thermal power generation, the renewable electricity produced by wind power stations has no direct greenhouse gas emission, while promoting sustainable development.

Wind mills

Image: Dawood Wind Power Station [photo / Green Finance & Development Centre]

[1] Hong, R. (2020). The Pakistan Dawood Wind Power Project – A Climate Investment and Financing Project in the Belt and Road Initiative (BRI). Green Finance & Development Center.