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 2015 Oil Import Bill US $ 38 Billion (ADB Estimate) 200% of the National Export Earnings

Energy Source
Waste-to-Energy Small Hydro
Wind

Cost/Unit
6-9 Cents 6 9 Cents
14.66 Cents

Large Renewable Energy Potential:

Wind*: Solar*: Hydro : Bagasse : 346,000 MW Large 58,000 MW 2,000 MW 2,000 MW

Waste to Energy: Geothermal 2500 MW Off-Grid Application: Alternate Fuels

Solar

20+ Cents
Expensive*

10,000 MW Large TBD

RFO (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 IPPs Quantity 16 Location Gharo & Jhimpir (Sindh)

AEDB / UNDP-GEF Barrick Gold Corporation

10 5

Gharo Wind Corridor (Sindh) Reko Diq, Balochistan

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 Financial Closing

Fauji Fertilizer Zorlu Enerji Pak Three Gorges Foundation 1 Foundation 2 Lucky Energy

50

133.56

Under Construction

Achieved- June 2011 Achieved- May 2012 Oct - 2012 Aug - 2012 Aug - 2012 Dec 2012 Dec 2012 Dec 2012 Dec 2012

56

143.60

Under Construction

3 4 5

50 50 50

134.75 128.69 128.70

Under Construction -Tariff Received-Tariff Received-

50

132.53

-Tariff Received-

Sapphire Power
Tenaga Generasi Metro Power Gul Ahmed Master Energy

50

128.87

-Tariff Received-

50

129.67

-Tariff Received-

50

132.56

-Tariff Received-

10

50

132.87

-Tariff Received-

Dec 2012
Feb - 2013

11

50

133.68

-Tariff Awaited-

List of Fast Track Wind Power Projects

Sr. No. 1. 2. 3. 4. 5. Company Name NBT Wind Power (Norway) Titan Energy Pakistan (Pvt.) Ltd. Tapal Wind Energy (Pvt.) Ltd. Ismail Power Limited Fina Energy (Turkey) Project Capacity 500 MW 10 MW 10 MW 10 MW 250 MW

6.
7. 8. 9. 10. 11 12. 13. 14.

FFC Energy
Japan Green Power (Japan) Associate Technologies Anadulo Wind Pakistan (Turkey) China Sunnec Energy (Pvt.) Ltd System Wind Energy (Turkey) Hydro China (China) HZ Wind Power (China) Hartford Energy (USA)

100 MW
50 MW 100 MW 50 MW

50 MW 50 MW 300 MW
100 MW 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