Alternative Energy Alternative Energy OptionsOptions in Pakistanin Pakistan

Energy Situation in PakistanEnergy Situation in Pakistan(From a different Perspective)(From a different Perspective)

Total Population: 170 MillionElectricity Available to: 61%Natural Gas Available to: 21%Diesel Imports 4.5 Million Tonnes (50%)Yet there is extreme shortages of Gas and Electricity leading to load shedding.Pakistan has amongst the worlds highest and fastest rising urbanization. Under 15 population 39%, pointing to spurt rather than gradual increase in energy demandPoor are paying 3-5 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.Shift from kerosene use to biomass (down the energy ladder) has exposed women to unclean fuel, hazards of indoor air pollution, and hours of extra work in searching and collecting biomass. Indoor air pollution causes over 110,000 deaths in Pakistan annually.

Alternative EnergyAlternative EnergyRenewable Energy

WindSolar

PhotovoltaicThermal

HydroGeo-Thermal

Alternative Fuels Bio DieselEthanolRefuse Derived Fuel (RDF) – Waste-to-EnergyBiogas

Other Non-Conventional EnergyWaste-to-EnergyWaste Heat Recovery & CogenerationConservation

Why Alternative Energy For Pakistan?Why Alternative Energy For Pakistan?Reduced dependence on Imported Oil:

2008 Oil Import Bill: $11+ Billion 63% of the total Export Earnings for 20082015 Oil Import Bill US $ 38 Billion (ADB Estimate)200% of the National Export Earnings

Economic losses due to energy deficitFor Energy Security - Focus on Domestic ResourcesResource AbundanceRelieves Grid ResourcesLow infrastructure needsCost EffectiveEnvironment Friendly

Carbon Credits ($ 400 Million / yr)Land Degradation ControlledEmployment CreationPoverty Alleviation

Energy Source

Cost/Unit

Waste-to-Energy 5 -7 Cents

Small Hydro 6 – 7 Cents

Wind 12.5 Cents

Solar 21 Cents

RFO (Thermal)

Expensive*

*dependant on fuel oil prices

PakistanPakistan’’s Renewable Energy Potentials Renewable Energy Potential(Summary)(Summary)

Wind: 346,000 MW

Solar: 2.9 Million MW

Small Hydel (upto 50 MW): 4,500 MW

Cogeneration/Biomass/W2E: 4,000 MW

Geothermal: 2,000 MW

Off-Grid Applications: 10,000 MW

Alternate Fuels Large. TBD

Alternative Energy Development Board (AEDB)Alternative Energy Development Board (AEDB)

Created in 2003. Mandated by the Government of Pakistan tCreated in 2003. Mandated by the Government of Pakistan to:o:--

ImplementImplement policies, programs and projects through private sector in policies, programs and projects through private sector in the field of Alternative Energythe field of Alternative Energy

Assist and Assist and facilitatefacilitate development and generation of Alternative development and generation of Alternative Energy to achieve sustainable economic growthEnergy 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 Alternative provision of energy services that are based on Alternative energy resourcesenergy resources

UndertakeUndertake RE projects on commercial scale (AEDB Act 2010)RE projects on commercial scale (AEDB Act 2010)

Renewable Energy Policy of Pakistan

Wind Risk - responsibility of GoPGuaranteed Electricity PurchaseGrid provision is the responsibility of the purchaserAttractive Tariff (17%-18% ROE)Counter Guarantee by the ADB for first few projectsSpecial Incentives by the State bank for upto 10 MW plantsNo Import Duties on EquipmentZero Sales TaxNet MeteringBanking of ElectricityWheeling ProvisionsGrid Spill Over Concept introducedCarbon Credits

Feed in Tarrif proposed under the Policy 2011

Co-financing from European Investment Bank (200 Million) lined up to supplement US $ 510 Million ADB funding. AEDB the implementing agency

Euro 25 Million EU project to reduce poverty through AE projects in NWFP and Baluchistan finalized. AEDB Co-Chair

Organised Technical Assistance Project Preparation by the Provinces (KPK US $ 5.0 Million, Punjab US $ 5.0 Million, Baluchistan & Sindh US $ 1.2 Million.)

Counter Guarantee for the private sector projects organized with the ADB

Funding for the First Public Sector Wind project finalized. Project await approval of the Planning Division

Forum for Business to Business meetings with international donors and bilaterals established

International Cooperation

Wind Resource in Pakistan

350,000 MW potential

50,000 MW in Gharo-Keti

Bandar and Jhampir corridors.

Average Wind Speed 7 + meters / sec

At 60 m height

Sites in Baluchistan, Punjab and Northern Areas being identified.

Gha

ro

Gha

roW

ind

Win

d

Corr

idor

Corr

idor

WIND MEASURING SITES IN SINDH

Current Status of Land Allocation(Summary)

2004 – 2007: Land identified and earmarked to 22 IPP’s (50 MW each). 100% payments made to Sindh Government.

Poor or no documentation gave unlimited rights to the IPP’s. Cancellation of land was an issue.

2008: GoS leased 33,976 acres of land at Khuttikun, Bhambore & Jhimpir : Clear Land: 28,898 Encroached / Litigation on : 5,062Still disputed 4,382

2009: Four sites (Ismail Power / Candy Land; Gatelene Industries; Al-KaramTextile Mills and Hilton Pharma), withdrawn.

Re-allocated to Abbas Steel (100 MW)Reserved for USAID (50 MW)

2010: 13 IPP’s given notices to obtain LOS by 31st Dec-10, or loose their rights to land.

To date - Land for 3 IPP’s remains disputed / encroached / without possession.

Area Where Wind Power

Projects Are Being Executed(Jhimpir)

Gharo

Sites

During

Monsoon

(High

Tide)

Season

Zorlu 6MW operational (Jhampir).

150 MW USAID project with OPIC. SOI Signed November 2010.AEDB completed Feasibility. Implementation Mechanism & GoP Counterpart Agency to be determined.

Fauji Fertilizer (50 MW) Financial Close expected: Jan / Feb 2011

Zorlu Energy (50 MW) Financial Close expected: Jan 2011

Beacon Energy and Green / Tapal Power (Fauji) (100 MW) Financial Close: Mar – Apr 2011

Firm Pipeline:

Now expected Feburary 2011

6 serious (350 MW) fast track projects (ENGRO, BRADFORD, HARTFORD, SUNEC, SABCO, Al-SWEDY) awaiting allocation of land.

Project Status*

Year Financial Close COD

2010 50 MW 6 MW

2011 400 MW 100 MW

2012 150 MW 400 MW

2013 300 MW 150 MW

* Wind project timeline: 47 to 54 Months

Created Enabling Environment:Finalized Grid Code to enable NTDC accept Wind Power

Grid Code Amended. Notified by NEPRA April 2010, making it possible to enter into the Energy / Power Purchase Agreement.

Standardized the Project Documents (PPA / IA / Net metering / Wheeling)NTDC / CPPA / AEDB finalizing standard documents.

Addressed Lender Concerns about Environment Impact AnalysisLender acceptable Generic EIA developed for the region

Streamlined Land Issues:Standardized, legally vetted documentation now in place

Created Lender ConfidenceAddressed Circular debt issue for cautious lenders

Counter Guarantee scheme initiated with ADB

Introduced Alternate Buyer Option:Option of Wheeling and Banking introduced

Regained Lenders Confidence due to standard documents:EOBI offered to invest in 150 MW Wind Farm, if it supports the technology transfer.OPIC, ADB, IFC, IDB issued letter of support to 6 projects

Removing Barriers in Wind Sector

Facilitated Investor:Reduced Lead times and EPC contract from turbine manufacturers:

General Electric, (US / China) ; Nordex (Denmark); Siemens (Germany); Vestas (Denmark/ USA);

Goldwind (China); SUNEC (China); Clipper (USA) – Now Offering 4-6 months delivery periods

with turnkey EPC contract, compared to 26-36 months earlier.

Expanding Wind Corridor

Deh-Khohistan (Jhangri), and Deh Bhaburband (Jamshero) identified as new high wind corridors.

Similar exercise undertaken in other provinces.

Project fast tracked due to proactive participation of Sindh Government

Land issues, particularly law and order issues mostly resolved.

Wind Risk and Production Numbers

Risoe – providing credibility to the Lenders

Encouraged local manufacturing

Under the agreement NORDEX / Descon to produce 20% FFC project locally.

Heavy Industries Taxila to manufacture 20% of all Vestas equipment, with a deletion program to take

it upto 50 % in five years – agreement under negotiation.

Removing Barriers in Wind Sector

Foundation - 60 Tonnes of Steel

Zorlu

Wind

Farm

Jhimpir

Roter – Weights 72 tonnes

Requires 600 Ton Crane –Not Available in Pakistan

PICTURE OF THE WIND BLADES

Blades 72 Meters Wide

HYDRO SECTOR

Hydro PowerHydro Power(Public Sector)(Public Sector)

KhyberPk US $ 77.4 MillionRanolia (11.5 MW)

Daral Khwar (35 MW)

Machai (3.5 MW)

Feasibility Studies 03

Punjab US $ 62.1 MillionUCC Main Lower (4.8 MW)

Deg fall Sheikhpura (5.5 MW)

Pakpattan Canal (3.3 MW)

LBDC Okara (5 MW)

UCCM Marala (11.5 MW)

Feasibility 05

Gilgit Baltistan US $ 51.0 Million26 MW Hydro Power Plant at Shegherthang in Skardu

4 MW Hydro Power Plant at Chilas

Feasibility 30

Hydro PowerHydro Power(Private Sector)(Private Sector)

Punjab US $ 241.4 MillionB.S. Link Canal Olympia Chemical (10.0 MW)Q.B. Link Deen Power (7.71 MW)Jhang Brach Canal Alka Power (3.03 MW)L.B.D.C Alka Power (2.08 MW)C.J. Link Tail Haseeb Khan & Co. (43.0 MW)T.P. Link Canal New park Energy (10.0 MW)B.S. Link 1 New park Energy (9.00 MW)Rasul (Jhelum) Habib Rafiq (20.0 MW)Punjnad (Chenab) Habib Rafiq (20.0 MW)Marala (Chenab) Olympus Energy (20.0 MW)

NWFP US $ 123.48 MillionSammar (28.0 MW)

Batal Khwar (8.10 MW)

Bhimbal (8.10 MW)

Arkari Gol (26.4 MW)

Mastun (8.90 MW)

Lutkho (6.40 MW)

Waste to Waste to EnergyEnergy

Waste To EnergyWaste To Energy27 MW of Biomass / Waste to Energy operational. PPA for 15 MW signed between PESCO and Al-Moiz Industries, D. I. Khan.

7 MW of Biogas / Waste to Energy between FESCO and Shakarganj Sugar Mills, Jhang.

8 New W 2 E Projects (123.8 MW) awarded Generation License; 6 New Applications (147.2 MW) under process.

Pilot Phase of Landhi Cattle Colony Biogas Project completed.  Full scale project (48MW plus 1.25 Million CERs) being prepared with ADB Assistance.

US $ 325 K Waste to Energy Study to produce 10 MW power in Karachi in process.

9 RDF / WTE plants are operational/in advanced stages of implementation in Lahore, Karachi, Sheikupura, Faisalabad, Hyderabad, Dera Ghazi Khan and Peshawer

2 Biomass to Energy projects under development:  (1) Lumen Energia Pvt Ltd for 11 MW in Punjab; and  (2)  SSJD group for 12 MW in Sindh

Solar

Solar Energy

On Grid PV3 LoIs (53 MW total) issued3 LoIs (63 MW total) in process

On Grid Solar Concentrator1 LoI (50 MW) issued by Punjab Govt1 LoI (500 MW) being processed

Expected tariff for solar US $ 0.23+ / kWh.

BIO-DIESEL

ECC target: 5% by volume of the total Diesel consumption by the year 2015 and 10% by 2025

Energy plantations for Biodiesel cultivated on 650 acres.

Biodiesel production on a pilot scale initiated with PSO

First Biodiesel refinery (18,000 Tons / annum Capacity) setup at Karachi.

SRO 474(I)/2008 exempts custom duties and sales tax on Biodiesel production equipment and material.

Amendments in OGRA Ordinance for Biofuels pricing notified

AEDB and PARC developing first commercial scale project. Solicitation for this 5000 acre project expected March 2011.

BiodieselBiodiesel

JatrophaJatropha PlantationsPlantations

Company DetailsPakistan State Oil Company Ltd, Karachi

Jatropha nursery established. Jatrophaplantation on 22 acres at Pipri, Karachi.

Arid Zone Research Institute, PARC Bahawalpur

Jatropha nursery established. Jatrophaplantation on 22 acres at Pipri, Karachi.

Biofuel Research Centre Karachi Jatropha nursery established.

Al-Wardah Agro Industries Farm Karachi

Jatropha plantation on 1 acre in Bahawalpur city and 1 acre in Cholistan.

Javed (Pvt.) Ltd Karachi Jatropha nursery established at MirpurSakro.(100,000 saplings ready for plantation)

One Gas (Pvt.) Ltd Lahore Jatropha plantation on 50 acres, Karachi

National University of S&T Undertaking Jatropha plantation on 85 acres near Karachi, out which 29 acres have been completed.

Contract with CIDA Jatropha nursery established. JatrophaPlantation on 2 acres in Bahawalpur.

JatrophaJatropha NurseryNursery

JatrophaJatropha in in SindhSindh

Clusters of Jatropha Fruit

Ripening Jatropha Seed Pods

Bio Diesel PlantBio Diesel Plant

Final ProductFinal Product

OffOff--Grid AE ApplicationsGrid AE Applications

Solar Home Systems

Solar Water Heater

Solar Water Pumping

Clean Drinking Water

Street lights

RE for Businesses

Small and Micro Hydro

Heat pumps 

Bio Gas

Off Grid Wind/Solar

Representative OffRepresentative Off--Grid AE ApplicationsGrid AE ApplicationsSolar Home Systems

150 villages electrified (49 AEDB, 30 NRSP, other PCRET, UN and NGOs

Parliamentarian Schem launched

Solar Water Heater2010 sales up by 200%.

Local Manufacturing now available

Solar Water Pumping100 Clean drinking plants being powered by Solar

World Bank supporting project on Agriculture Water Pumping. ZTBL, Punjab and Sindh Government participating.

USAID improving efficiency of 10,000 electric tube well.  Solar being considered.

Street lights1000 Solar street lights operations

CDA issued tenders for 80,000 LED based lighting.  Considering Solarization

Small and Micro Hydro103 micro hydro projects in Chitral being implemented through NRSP

Project of another 250 plants under development 

Bio Gas14000 plants being installed in central punjab by RDN

View of a village provided with solar home systems

45

Outside installationOutside installation

Inside installation

Community center in a village

Light inside community center

Mosque with solar system

After dark view of a house

After dark view of a house After dark view of a house

Children moving around after dark

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Children activity after darkChildren activity after dark

54

Women doing embroidery after darkWomen doing embroidery after dark

Mobile Charging Facility Introduced

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