WIND ENERGY IN PAKISTAN

POTENTIAL, CURRENT STATUS & PROSPECTS

18th July 2012

Alternative Energy Development Board

(AEDB)
Implement policies, programs and projects through private
sector in the field of Alternative Energy

Assist and facilitate development and generation of

Alternative Energy to achieve sustainable economic growth
Encourage transfer of technology and develop indigenous
manufacturing base for AE Technology
Promote provision of energy services that are based on
Alternative energy resources

Undertake RE projects on commercial scale (AEDB Act

2010)

Why Alternative Energy For Pakistan?

Reduced dependence on Imported Oil:

2011 Oil Import Bill:

$11+ Billion

60% of the total Export Earnings

Cost/Unit

2015 Oil Import Bill US $ 38 Billion (ADB Estimate)

200% of the National Export Earnings

Energy Source
Waste-to-Energy

6-9 Cents

Small Hydro

6 9 Cents

Wind

14.66 Cents

Solar

20+ Cents

RFO

Expensive*

Large Renewable Energy Potential:

Wind*:

346,000 MW

Solar*:

Large

Hydro :

58,000 MW

Bagasse

Waste to Energy:

Geothermal 2500 MW

2,000 MW
2,000 MW

Off-Grid Application:

10,000 MW

Alternate Fuels

Large TBD

(Thermal)
*dependant on fuel oil prices

Wind Resource in Pakistan

A total of 346,000 MW potential
Pakistan has a 1,046 Km
coastline in the South
Average wind speed more than 7
m/s above 60 m in Gharo Wind
Corridor having estimated wind
potential of more than 50,000 MW

Other sites in Balochistan, Punjab

and Northern Areas identified

WIND MEASURING SITES IN SIND

1st Phase Wind Power Program in Sindh Province

AREA WHERE WIND POWER PROJECTS ARE BEING EXECUTED

MICRO SITING OF WIND FARMS IN JHIMPIR BY

AEDB EXPERTS

Land Allocation - Jhimpir

Wind MET Masts for Wind Mapping

Agency

Quantity

Location

16

Gharo & Jhimpir (Sindh)

AEDB / UNDP-GEF

10

Gharo Wind Corridor (Sindh)

Barrick Gold Corporation

Reko Diq, Balochistan

IPPs

India has installed 1100 Wind measuring masts for the development of
Wind program.

UNIQUE FEATURES OF RE POLICY 2006

Guaranteed Electricity purchase

Grid provision is the responsibility of the purchaser
Protection against political risk
Attractive Tariff Cost Plus
Upfront Tariff of US$ cents 14.66 per kWh
Return on investment is between 17% to 18%
No Import Duties on Equipment
Zero Sales Tax
No Income Tax
Repatriation of Equity along with dividends freely allowed
Permission to issue corporate registered bonds
Permission to issue shares at discounted prices
Convertibility of PKR into USD

Other Incentives for Wind Project Investors

Standardized Project Documents have been developed keeping in view norms

of international wind industry.

Regional EIA study for Gharo ~ Keti Bandar Wind Corridor has been
conducted and EIA guidelines for EPA are developed

Electrical Studies have been conducted for wind power projects planned in
Gharo ~ Keti Bandar Wind Corridor in short & medium term.

Grid Code amended specific to Wind Energy.

ADB has announced counter guarantee for wind IPPs; thereby resulting in
reducing the credit rating risk of Pakistan for financing.

SBP has announced refinanced facility for RE projects up to 10 MW.

Developing the Wind Sector

Created Enabling Environment:

Feed-in-Tariff as well as Cost Plus tariff with Wind risk available

Grid Code Amended for Wind Power

Streamlined Land Issues by developing standardized, legally vetted documentation

Created Lender / Investor Confidence

Circular Debt Concerns Addressed ADB Counter Guarantee in place

Regained Lenders Confidence OPIC supporting 4, IFC, ADB and IDB 3 Projects.

Lender Acceptable Standardized the Project Documents (PPA / IA / Wheeling) Available

Regional Environment Impact Analysis, approved by donors available to investors

Reduced Lead Times And EPC Contract From Turbine Manufacturers

All major turbine manufacturers now offering 4-6 months delivery and EPC contract
Encouraged Local Manufacturing

DESCON now producing Wind Masts for Nordix Machines. HIT negotiating Turbine Assembly with CWE.
Inclusive / Cooperative Approach

All Provinces now a full member of AEDB Board, and RE Policy Review team.

New corridors identified. New wind masts installed Sindh, Baluchistan and Punjab through UNDP asst.

Project In Pipeline
Projects in Pipeline:
M/s FFC Energy achieved Financial Close in June 2011.

M/s Zorlu Enerji achieved Financial Close in May 2012

Following IPPs expected to achieve Financial Close for 50 MW each
this year;
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.

Fauji Foundation (100 MW)

Three Gorges First Wind Farm Pakistan
Tenaga Genarasi
Lucky Energy
Gul Ahmed Power
Metro Power
Sapphire Wind Energy
Dawood Power

17

First 550 MW WPPs

Name of Project

Capacity (MW)

Project Cost
(Million USD)

Status

Fauji Fertilizer

50

133.56

Under Construction

Zorlu Enerji Pak

56

143.60

Under Construction

Three Gorges

50

134.75

Under Construction

Foundation 1

50

128.69

-Tariff Received-

Foundation 2

50

128.70

-Tariff Received-

Lucky Energy

50

132.53

-Tariff Received-

Sapphire Power

50

128.87

-Tariff Received-

Tenaga Generasi

50

129.67

-Tariff Received-

Metro Power

50

132.56

-Tariff Received-

10

Gul Ahmed

50

132.87

-Tariff Received-

11

Master Energy

50

133.68

-Tariff Awaited-

Financial Closing

Achieved- June 2011

Achieved- May 2012
Oct - 2012
Aug - 2012
Aug - 2012
Dec 2012
Dec 2012
Dec 2012
Dec 2012

Dec 2012
Feb - 2013

List of Fast Track Wind Power Projects

Sr. No.

Company Name

Project Capacity

1.

NBT Wind Power (Norway)

500 MW

2.

Titan Energy Pakistan (Pvt.) Ltd.

10 MW

3.

Tapal Wind Energy (Pvt.) Ltd.

10 MW

4.
5.

Ismail Power Limited

Fina Energy (Turkey)

10 MW
250 MW

6.

FFC Energy

100 MW

7.

Japan Green Power (Japan)

50 MW

8.

Associate Technologies

100 MW

9.

Anadulo Wind Pakistan (Turkey)

50 MW

10.

China Sunnec Energy (Pvt.) Ltd

11
12.

System Wind Energy (Turkey)

Hydro China (China)

50 MW
50 MW
300 MW

13.

HZ Wind Power (China)

100 MW

14.

Hartford Energy (USA)

45 MW

1582.4 MW

Pakistan: Investors Choice Destination

(Norway, Turkey, Iran, Germany, USA, China and Japan)

Foreign investment by 2013: (US $ 1.2 US $ 2.7 Billion)

400-450 MW on existing Lands
1000 MW Additional if land is made available immediately.

Next Focus:

Indigenous Manufacturing

Wind Sector is attracting the largest investment of any

sectors in Pakistan

Under Construction Wind Farm

Turbine Foundation With 62 Ton Steel

Zorlu Wind
Farm

Jhimpir

Roter Weights 72 tonnes

Requires 600 Ton Crane Not Available in Pakistan

PICTURE OF THE WIND

BLADES

Zorlu Wind Farm

56.4 MW Wind Power Project of Zorlu Enerji under construction

49.5 MW Wind Power Project of FFC Energy Limited under construction

Construction / civil works at 49.5 MW wind project of M/s Three Gorges

Pakistan

Thank You