5.2. pakistan country presentation by a. allaudin

8/9/2019 5.2. Pakistan Country Presentation by A. Allaudin

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Quantum Leap in Wind Power in AsiaQuantum Leap in Wind Power in Asia Structured ConsultationStructured Consultation

Country ProfileCountry Profile

Opportunities & Challenges to Scaling upOpportunities & Challenges to Scaling up

Presentation byPresentation by

Mr. SAIF ULLAHMr. SAIF ULLAH Mr. ARIF ALLAUDINMr. ARIF ALLAUDIN

Joint Secretary (Power) Chief Executive OfficerJoint Secretary (Power) Chief Executive OfficerMinistry of Water and PowerMinistry of Water and Power Alternative Energy Development BoardAlternative Energy Development Board

Government of PakistanGovernment of Pakistan

JuneJune 2121--2222,, 20102010ADB Headquarter Manila, PhilippinesADB Headquarter Manila, Philippines

The views expressed in this presentation are those of the presenter and do not necessarily represent those of the Asian Development Bank.


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PresentationPresentation

Pakistan Power Sector OverviewPakistan Power Sector Overview

Wind Resources in PakistanWind Resources in Pakistan

RE Development PlanRE Development Plan

Institutional FrameworkInstitutional Framework

Unique Features of the RE PolicyUnique Features of the RE Policy

Steps for the Development of Wind IPPSteps for the Development of Wind IPP


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OVERVIEW


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PAKISTAN POWER SECTOR OVERVIEW

PEPCO (Thermal) 4,829 24

WAPDA (Hydel) 6,444 33

NUCLEAR 462 2

Sub Total 11,735 59

Public SectorMW %

Private Sector(Thermal)8,496 MW(41.6%)

Public Sector(Thermal)

4,829 MW(24.0%)

IPPs (Thermal) 6,314 31

KESC (Thermal) 1,756 9

Rental & SPP 426 1

Sub Total 8,496 41

Grand Total 20,231 100

Private SectorMW %

Public Sector(Hydel)

6,444 MW(32.1%)

Nuclear462 MW(2.3%)

Optimum summer capacity 17,897MWOptimum winter capacity 13,215MW


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DEMAND & SUPPLY POSITION

14

16

1820

nd

-5022 MW

5

0

2

4

6

8

1012

M

W

inT

hou

s

FY-02 FY-03 FY -04 FY-05 FY-06 FY-07 FY-08 FY-09 FY-10

Demand

Supply


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COUNTRY PEAK DEMAND & SUPPLY

FUTURE PROJECTIONS 20072030

90000

113695

80566

80000

100000

120000

6

70000

40000

15500

27000

19000

18883

36217

24474

0

20000

40000

60000

FY-07 FY-10 FY-15 FY-20 FY-25 FY-30

Year

M

MW Supply MW Demand


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ENERGY SUMMIT APRIL 2010

The Govt of Pakistan organized the Energy Summit in April

this year in order to built up major political consensus toaddress the immediate issues of the energy sector.

First time ever a major nation wide energy conservationand efficienc im rovement cam ai n evolved.

This reflects the will of the nation to emerge out of theenergy crisis by adopting the best practices.


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CONSEVATION MEASURES ADOPTEDthrough Energy Summit April 2010

Achievements:

Ut The unscheduled power outages reduced from 12 -16 hours a dayto 4 -6 hours and savings of about 2000 MW has been achieved.

Reduction of lights up to 50% in President, Prime Ministers

Secretariats, Federal Ministers, Governors, Chief Ministers, all

Provincial Ministers and all Government Offices and induction of

energy savers.

Illumination of alternate street lights and non-supply of power to

billboards and neon signs.

Staggering of weekly holiday for Industry.

Closure of markets and shops at sun-set. During the day shops shall

be provided with at least two continuous spells of power supply.

Five day week for Government Departments and affiliated Institutions.


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CONSEVATION MEASURES ADOPTEDthrough Energy Summit April 2010

OTHER IMPORTANT DECISION

Inefficient irrigation/water supply motors and pumps to be

replaced by efficient equipment.

Only energy efficient appliances to be allowed to be manufactured

and imported in Pakistan.

Mandatory energy audit of industrial, commercial and public

concerns.

Energy Building Code shall be enforced immediately.

Setting up of Energy Development Fund (EDF) PM alreadyannounced Rs. 20 billion as seed money, which is reflected in the

budget. Donors being requested to supplement the fund.

Reallocation of 183 MMCFD Additional Gas to Power Sector.

Renewed focus on Renewable / Domestic generation resources


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Disputed AreaDisputed AreaDisputed Area


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WIND RESOURCE IN PAKISTANWIND RESOURCE IN PAKISTAN

Pakistan has a 1,046 KmPakistan has a 1,046 Kmcoastline in the Southcoastline in the South

Average wind speed moreAverage wind speed morethan 7.4 m/s in Gharothan 7.4 m/s in Gharo

n orr orn orr or

Estimated wind potentialEstimated wind potentialmore than 50,000 MWmore than 50,000 MW

Other sites in Balochistan,Other sites in Balochistan,

Punjab and Northern AreasPunjab and Northern Areasbeing identifiedbeing identified


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INSTITUTIONAL FRAMEWORK


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ALTERNATIVE ENERGY DEVELOPMENTALTERNATIVE ENERGY DEVELOPMENTBOARD (AEDB)BOARD (AEDB)

AEDB established as a one window facilitator in the areas of RE for theAEDB established as a one window facilitator in the areas of RE for thePrivate SectorPrivate Sector

Mandated by the Government of Pakistan to:Mandated by the Government of Pakistan to:--

Implement policies, programs and projects through private sector inImplement policies, programs and projects through private sector in

Assist and facilitate development and generation of AlternateAssist and facilitate development and generation of AlternateEnergy to achieve sustainable economic growthEnergy to achieve sustainable economic growth

Facilitate transfer of technology and develop indigenousFacilitate transfer of technology and develop indigenousmanufacturing base for RE Technologymanufacturing base for RE Technology

Facilitate power generation / provision of energy services usingFacilitate power generation / provision of energy services usingAlternate energy resourcesAlternate energy resources

2010 AEDB act permits AEDB to undertake RE projects to lead and2010 AEDB act permits AEDB to undertake RE projects to lead andprime the sector.prime the sector.


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1st Phase Wind Power Program (Sindh Province)


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MICRO SITING OF WIND FARMS IN JHIMPIR BY AEDB


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PAKISTANS RENEWABLE ENERGY POLICY

Wind Risk taken by the Government Guaranteed Electricity purchase Grid provision is the responsibility of the purchaser Attractive cost of land for wind energy projects Standardized Project Documents (LOI, LOS, AI, EPA etc). Attractive Tariff (Return on investment 17% to 18%)

Zero Sales Tax No Income Tax / withholding tax Repatriation of Equity along with dividends freely allowed Permission to issue corporate registered bonds Easy Convertibility of PKR into USD Net Metering Banking of Electricity Wheeling Provisions Grid Spill Over Concept introduced Carbon Credits mainly to the investor


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Key Steps Involved for setting upKey Steps Involved for setting upa Wind Power Pro ect in thea Wind Power Pro ect in the

private Sectorprivate Sector


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STEPS FOR WIND POWER PROJECTSSTEPS FOR WIND POWER PROJECTS

Letter Of Intent (AEDB)

Land Acquisition (AEDB or Private Land) Feasibility Study (Approved By AEDB)

Generation Licence (NEPRA)

Letter Of Support (AEDB)

Energy Purchase Agreement (AEDB/NTDC)

Implementation Agreement (AEDB)

Financial Close

Implementation / Execution


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Wind Power ProjectsWind Power Projects -- (50 MW Each)(50 MW Each)

S #S #S #S # IPPIPPIPPIPP

PROGRESS STAGEPROGRESS STAGEPROGRESS STAGEPROGRESS STAGE

FeasibilityFeasibilityFeasibilityFeasibility TariffTariffTariffTariff(c / kWh)(c / kWh)(c / kWh)(c / kWh) Gen LicenseGen LicenseGen LicenseGen License Energy PurchaseEnergy PurchaseEnergy PurchaseEnergy PurchaseAgreementAgreementAgreementAgreement CostCostCostCost(Million USD)(Million USD)(Million USD)(Million USD)

1111 Zorlu EnerjiZorlu EnerjiZorlu EnerjiZorlu Enerji pppp 12.10 pppp pppp 121.99

2222 Green PowerGreen PowerGreen PowerGreen Power pppp 10.28 pppp pppp 108.80

3333 Dawood PowerDawood PowerDawood PowerDawood Power pppp 11.87 pppp + 120.34

4444 Beacon EnergyBeacon EnergyBeacon EnergyBeacon Energy pppp 12.50 + pppp 130.00

5555Fauji FertilizerFauji FertilizerFauji FertilizerFauji FertilizerCompanyCompanyCompanyCompany pppp x + pppp 143.00

6666Arabian Sea WindArabian Sea WindArabian Sea WindArabian Sea WindEnergyEnergyEnergyEnergy pppp

x + x 142.23

7777 New Park EnergyNew Park EnergyNew Park EnergyNew Park Energy pppp 9.50 PPPP x +

8888 Zephyr PowerZephyr PowerZephyr PowerZephyr Power pppp + PPPP x +

9999Sapphire WindSapphire WindSapphire WindSapphire WindPower CompanyPower CompanyPower CompanyPower Company pppp

x x x +

10101010 Lucky EnergyLucky EnergyLucky EnergyLucky Energy pppp x x x 132.35


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CURRENT STATUS OF WIND IPPs

First wind farm of commercial scale in countrys historywas established in Pakistan in 2009

Four IPPs 50 MW each (200 MW) to achieve Financialclose in 2010.

Ten IPPs - 500 MW worth of Projects are expected to getFinancial Closure by end 2011.

Government to undertake 150 MW project in the next 2years

Local Manufacturing being encouraged as a GovernmentPolicy.


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GOVT OF PAKISTANS VISION ON

DEVELOPMENT OF RENEWABLE ENERGY

The Government of Pakistan is keen to develop Renewable Energy

(RE) on war footing:

To address the issues of energy deficit

To increase the share of RE in Energy Mix

To develop indigenous resources and reduce dependency

The RE target for Pakistan is 9700 MW by year 2030

Renewable Policy 2010 (expected July 2010) will provide additional

focus on local Manufacturing, of grid application and safeguards forthe private investors.

Pakistan seeks support from DFIs, IFIs, and support to learn from

the success of other developing countries.


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THANK OU THANK OU THANK OU THANK OU