Wind Power Development in Pakistan

29th February, 2012

HISTORIC SUPPLY AND DEMAND

20000

15000

10000

5000

0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

-5000

-10000
Computed Peak Demand Corresponding Supply Surplus/ Shortfall

2010-11

ENERGY SITUATION IN PAKISTAN

(FROM A DIFFERENT PERSPECTIVE)
Total Population: Electricity Available to: Natural Gas Available to: Diesel Imports 180 Million 61% 21% (70 Million without power) (140 Million without piped gas)

4.5 Million Tones (50%)

Yet there is shortages of Gas and Electricity leading to load shedding. ENERGY DEMAND TO GROW FASTER:
Pakistan has amongst the worlds highest and fastest rising urbanization. Under 15 population 39%, pointing to spurt rather than gradual increase in energy demand Higher Economic and population growth, with highest rate of Urbanisation

AFFECTING AGRICULTURE, INDUSTRY, COMMERCE

Tubewells, Transport, Fish-farms, Industry and commerce effected

POOR PAYING THE MOST

Poor are paying 5-7 time more for their fuel costs than those in the cities, Increase in prices of modern commercial fuel, its lack of availability is forcing the consumer to step down on the energy ladder to biomass.

Needed Power Capacity 20072030 (Countrywide)

120000

Annual Growth Percentage = 8%

100000

113695

80000

80566

60000
MW

54359 40000 36217

20000

24474 18883

0 2007 2010 2015 2020 2025 2030

Years

Source of Growth Rate : PEPCO , P&D Div

KESC(Thermal) 9%

Rental & SPP 2%

PEPCO (Thermal) 24%

IPPs(Thermal) 31% Nuclear Thermal (Oil and Gas) - 66% 2% Hydel & Nuclear - 34%

WAPDA (Hydel) 32%

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

Cost/Unit
5 -8 Cents 6 9 Cents

Renewable Energy Potential:

Wind*: Solar*: Hydro : Bagasse : 346,000 MW 2.9 Million MW 58,000 MW 2,000 MW 2,000 MW 2500 MW

Wind
Solar

14 Cents
20+ Cents Expensive*

Waste to Energy: Geothermal

RFO (Thermal)

Off-Grid Application: 10,000 MW Alternate Fuels Large TBD

*dependant on fuel oil prices

Alternative Energy Development Board (AEDB) (Act 2010)

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

Wind Resource in Pakistan

350,000 MW
National Potential

50,000 MW in Sindh
Sites in Baluchistan, Punjab and Northern Areas being identified.

WIND MEASURING SITES IN SIND

Wind Measuring Masts Gharo

Wind Corridor

BHAMBORE

JHAMPIR

KHUTTIKUN

Area Where Wind Power Projects Are Being Executed (Jhimpir)

Land Allocation - Jhimpir

Creating Enabling Environment

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 documentation which included specific statement of conditions for Wind Projects Created Lender / Investor Confidence ADB Counter Guarantee in place Regained Lenders Confidence OPIC supporting 4, IFC, ADB and IDB 6 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.
Expanding Wind Corridors New corridors identified. New wind masts installed Sindh, Baluchistan and Punjab through UNDP asst.

Renewable Energy Policy of Pakistan

Resource Risk - responsibility of GoP Guaranteed Electricity Purchase Grid provision is the responsibility of the purchaser Attractive Tariff (17%-18% ROE) Attractive Feed-in Tariff (US Cents 14.66/kWh) Counter Guarantee by the ADB Special Incentives by the State bank for upto 20 MW plants Free Repatriation of Profits No Import Duties on Equipment Zero Sales Tax Net Metering Banking of Electricity Wheeling Provisions Grid Spill Over Concept introduced Carbon Credits
Fast Track Projects Policy being implemented for COD by March 2013

49.5 MW Wind Power Project of FFC Energy Limited under construction

56.4 MW Wind Power Project of Zorlu Enerji under construction

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

Progress Status of First 550 MW WPPs

Name of Project Capacity (MW) Project Cost (Million USD) Under Construction Under Construction Under Construction -Awaiting Tariff -Awaiting Tariff Expected Financial Close

Expected Completion 12-Sep 12-Nov 12-Nov 13-Mar 13-Mar 13-Apr 13-Jun 13-Jun 13-May 13-Aug 13-Jun

Cumulative

Fauji Fertilizer Zorlu Enerji Pak Three Gorges Foundation 1 Foundation 2 Lucky Energy Sapphire Power Tenaga Generasi Metro Power Master Energy Gul Ahmed

50

133.56

11-Jun

50 MW 106 MW 156 MW 206 MW 256 MW 306 MW 356 MW 406 MW 456 MW 506 MW 556 MW

56

143.60

12-Mar

3 4 5

50 50 50

134.75 128.69 128.70

12-Jun 12-Mar 12-Mar

50

132.53

-Tariff Received-

12-Apr

50

128.87

-Awaiting Tariff-

12-Jun

50

129.67

-do-

12-Jun

50

132.56

-do-

12-May

10

50

133.68

-do-

12-Aug

11

50

132.87

-do-

12-Jun

List of Fast Track Wind Power Projects

Sr. No. 1. 2. Company Name NBT Wind Power (Norway) Titan Energy Pakistan (Pvt.) Ltd. Tapal Wind Energy (Pvt.) Ltd. Ismail Power Limited Fina Energy (Turkey) FFC Energy Japan Green Power (Japan) Project Capacity 500 MW 10 MW 10 MW 10 MW 250 MW 100 MW 50 MW

3.
4. 5. 6. 7.

8.
9. 10. 11 12. 13.

Associate Technologies
Anadulo Wind Pakistan China Sunnec Energy (Pvt.) Ltd System Wind Energy (Turkey) Hydro China HZ Wind Power (CHINA)

100 MW
50 MW 50 MW 50 MW 300 MW 100 MW 1582.4 MW

Pakistan: Investors Choice Destination

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

2012: 2013: 2014

500 MW 800 MW

+:

1000 ++
Indigenous Manufacturing

Next Focus:

Renewable Target 2020:

9700 MW

Wind Sector is attracting the largest investment of any sectors in Pakistan

Come invest in the Pakistan Wind Sector

Wind Risk Project Site Availability Feed in Tariff Standard Agreements ADB Counter Guarantee Free Repatriation

Extraordinary Returns
Special Incentives for local Manufacturer

Thank You

Thank You