wind energy in pakistan potential, current status & prospects 18 th july 2012
TRANSCRIPT
WIND ENERGY IN PAKISTANPOTENTIAL, CURRENT STATUS & PROSPECTS
18th July 2012
Alternative Energy Development Board (AEDB)
• ImplementImplement policies, programs and projects through private policies, programs and projects through private sector in the field of Alternative Energysector in the field of Alternative Energy
• Assist and Assist and facilitatefacilitate development and generation of development and generation of Alternative Energy to achieve sustainable economic growthAlternative Energy to achieve sustainable economic growth
• EncourageEncourage transfer of technology and develop indigenous transfer of technology and develop indigenous manufacturing base for AE Technologymanufacturing base for AE Technology
• PromotePromote provision of energy services that are based on provision of energy services that are based on Alternative energy resourcesAlternative energy resources
• UndertakeUndertake RE projects on commercial scale (AEDB Act RE projects on commercial scale (AEDB Act 2010)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
• Large Renewable Energy Potential: Wind*: 346,000 MW
Solar*: Large
Hydro : 58,000 MW
Bagasse : 2,000 MW
Waste to Energy: 2,000 MW
Geothermal 2500 MW
Off-Grid Application: 10,000 MW
Alternate Fuels Large TBD
Energy Source
Cost/Unit
Waste-to-Energy
6-9 Cents
Small Hydro 6 – 9 Cents
Wind 14.66 Cents
Solar 20+ Cents
RFO
(Thermal)
Expensive*
*dependant on fuel oil prices
Wind Resource in Pakistan
• A total of 346,000 MW potentialA total of 346,000 MW potential
• Pakistan has a 1,046 Km Pakistan has a 1,046 Km coastline in the Southcoastline in the South
• Average wind speed more than 7 Average wind speed more than 7 m/s above 60 m in Gharo Wind m/s above 60 m in Gharo Wind Corridor having estimated wind Corridor having estimated wind potential of more than 50,000 MWpotential of more than 50,000 MW
• Other sites in Balochistan, Punjab Other sites in Balochistan, Punjab and Northern Areas identifiedand Northern Areas identified
Gharo W
ind
Gharo W
ind
Corrid
or
Corrid
or
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
IPPs 16 Gharo & Jhimpir (Sindh)
AEDB / UNDP-GEF 10 Gharo Wind Corridor (Sindh)
Barrick Gold Corporation 5 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.
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.
Developing the Wind Sector
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. Fauji Foundation (100 MW)
ii. Three Gorges First Wind Farm Pakistan
iii. Tenaga Genarasi
iv. Lucky Energy
v. Gul Ahmed Power
vi. Metro Power
vii.Sapphire Wind Energy
viii.Dawood Power
17
First 550 MW WPPs
Name of ProjectCapacity
(MW)Project Cost (Million USD) Status Financial Closing
1 Fauji Fertilizer 50 133.56Under
ConstructionAchieved- June 2011
2 Zorlu Enerji Pak 56 143.60 Under
ConstructionAchieved- May 2012
3 Three Gorges 50 134.75Under
ConstructionOct - 2012
4 Foundation 1 50 128.69 -Tariff Received- Aug - 2012
5 Foundation 2 50 128.70 -Tariff Received- Aug - 2012
6 Lucky Energy 50 132.53 -Tariff Received-Dec – 2012
7 Sapphire Power 50 128.87 -Tariff Received-Dec – 2012
8 Tenaga Generasi 50 129.67 -Tariff Received-Dec – 2012
9 Metro Power 50 132.56 -Tariff Received-Dec – 2012
10 Gul Ahmed 50 132.87 -Tariff Received-Dec – 2012
11 Master Energy 50 133.68 -Tariff Awaited-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. Ismail Power Limited 10 MW
5. Fina Energy (Turkey) 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 50 MW
11 System Wind Energy (Turkey) 50 MW
12. Hydro China (China) 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 FarmUnder Construction Wind Farm
Turbine Foundation – With 62 Ton Turbine Foundation – With 62 Ton SteelSteel
Zorlu Wind
Farm
Jhimpir
Roter – Weights 72 tonnes
Requires 600 Ton Crane – Not Available in Pakistan
PICTURE OF THE WIND BLADES
Zorlu Wind FarmZorlu 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 YouThank You