WIND ENERGY FARMING IN

PAKISTAN AS IPP

FINAL PROJECT

A

•Faisal Vakassi•Sultan Hefni•Gina Escobar•Nathan Charlson

OUTLINE

Wind Energy – An Introduction

Wind energy globally

Environmental legal frame in Pakistan

Wind Resources in Pakistan

Jahmpir Wind Project

Practical Issues

Cost Benefit Analysis

Q&A

Wind Energy – An Introduction

HOW WIND IS CONVERTED TO POWER?

A wind turbine obtains its power input by

converting the force of the wind into a torque

(turning force) acting on the rotor blades

The amount of energy which the wind

transfers to the rotor depends

on the density of the air

the rotor area

and the wind speed.

In other words you can get more energy:

the "heavier" the air

the “bigger” the rotor

the “higher” the wind speed

WIND SPEED

The wind speed is extremely important for the amount of energy a wind turbine can convert to electricity

The energy content of the wind varies with the cube (the third power) of the average wind speed

If the wind speed is twice as high it contains eight times as much energy

2³ = 2 x 2 x 2 =8

Wind measuring is important to get the real wind speed at the specific site

KEY COMPONENTS OF A WIND FARM

Wind Turbines

Civil Works

Foundations

Road Network

Crane Places

Service buildings

Residential Quarter

Electrical Works

Step-up transformers

Wiring

Sub-station for power delivery

Wind Measuring Towers

COMPONENTS OF WIND TURBINE

690V

http://vimeo.com/13759005

CONNECTING TO THE GRID

WIND MEASURING

The best way of measuring wind speeds at a

prospective wind turbine site is to fit an anemometer to

the top of a mast which has the same height as the

expected hub height of the wind turbine to be used.

This way one avoids the uncertainty involved in

recalculating the wind speeds to a different height.

By fitting the anemometer to the top of the mast one

minimizes the disturbances of airflows from the mast

itself.

If anemometers are placed on the side of the mast it is

essential to place them in the prevailing wind direction

in order to minimize the wind shade from the tower

Wind energy Globally

GLOBAL ANNUAL & CUMULATIVE

INSTALLED CAPACITY 1996-2010

TURBINE SIZE GROWTH

WIND POWER ADDITION IN 2006

India, 1,840, 12%

Spain, 1,587, 10%

China, 1,347, 9%

France, 810, 5%

Canada, 776, 5%

Portugal, 694, 5%

UK, 634, 4%

Italy, 417, 3%

Germany, 2,233, 15%

US, 2,454, 16%

Rest of the world, 2,405 , 16%

Ref: IPCC 4th Assessment Report

BENEFITS OF WIND ENERGY

Prices of fuel are expected to go up substantially in coming years

On a long term basis, costs of electricity from renewable sources are more

predictable than thermal energy

Wind energy reduces cost of electricity now and in the future

Much lower external costs, and has the benefit of additional earnings from

CO2 certificates

Wind is an indigenous resource. Does not require foreign exchange

expenditure on import of fuel. Also adds security to countries energy mix.

Long term supply of wind is assured

Wind Resources in Pakistan

WHY WIND POWER FOR PAKISTAN

Vast resources (estimated capacity around 40,000 MW)

Location of farm closer to the Grid resulting in easier off-take

by power purchaser

Wind Energy is a proven technology which can be trusted and

guaranteed for project life

Most Cost effective (after small hydro which are located in

remote inaccessible areas and with grid availability)

ENERGY MIX OF PAKISTAN

Source: Working Paper - Current Tariff of Wind Energy in Pakistan

WIND RESOURCES IN PAKISTAN

The project area for the wind mapping was 1,100km along Sindh and Baluchistan coast and up to 100km deep northward over land from the coast.

44 stations for collecting wind data have been installed to study the wind regime as shown in figures.

“WIND CORRIDOR” IN PAKISTAN

JIWANI ORMARA

PANJGUR

NOKUNDI

DALBANDIN

KHUZDAR

QUETTA

SIBI

LORALAI

ZHOB

BARKHAN

KALAT

KARACHI

BADIN

HYDERABAD

SUKKUR

CHOR

NAWABSHAH

JACOBABAD

PADIDAN

BAHAWALPUR

BAHAWALNAGAR

FAISALABAD

LAHORE

ISLAMABAD

KHANPUR

MULTAN

SIALKOT

BALAKOT

CHITRAL

D. I. KHAN

DIR

DROSH

KAKULPARACHINAR

PESHAWAR

ASTOR

BUNJI

CHILAS

GILGIT

GUPIS

KOTLI

MUZAFFARABAD

SKARDU

8.1

9.0

5.2

3.4

5.9

6.1

3.0

2.9

3 .3

2 .2

5.1

2 .2

3.1

7.8

9.7

3.6

4.1

2 .5

2 .2

2.5

3.8

2 .3

1.9

1.4

2.5

4.3

4.0

0.9

JHELUM

1.7

4.6

2 .5

1.0

3 .3

1.1

3 .4

1.9

2 .5

2 .5

2 .9

1.5

3.6

3.3

1.3

3.1

MONTHLY WIND MAPPING OF PAKISTAN

DATA SOURCE: METEOROLOGICAL DEPARTMENT OF PAKISTAN

COMPILED BY BRIG DR NASIM A. KHAN

STUDY REPORT BY

PAKISTAN COUNCIL FOR APPROPRIATE TECHNOLOGY

MONTH: JUNE

ANEMOMETER HEIGHT 30 METERS

1 M/S

2 M/S

3 M/S

4 M/S

WIND SPEED

COLOUR CODE

5 M/S

6 M/S

7 M/S

8 M/S

9 M/S

10 M/S

JUNE

.

Average summer wind direction from Gharo to

Hyderabad

WIND RESOURCES IN BALUCHISTAN

23 stations: Aghore, Basol, Bella, Gaddani, Gawadar, Hoshab, Hub-Choki, Jiwani, Liari,

Makola, Managi, Mand, Nasirabad, Nelunt, Ormara, Othal, Pasni, Phore, Pishukan,

Ramra, Tump, Turbat, Winder.

WIND RESOURCES IN SINDH

List of 21 stations: Badin, Baghan, Churhar-Jamali, Gharo, Golarchi, Hawks-Bay, Hyderabad, Jati, Kadhan, Karachi, Kati-Bandar, Matli, Mirpur-Sakro, Nooriabad, Sajawal, Shah-Bandar, Talhar, Thano-Bula-Khan, Jamshoro, DHA Karachi, Thatta.

BENCH MARK WIND SPEED AT THE LOCATION

Source : Working Paper - Current Tariff of Wind Energy in Pakistan

SEASONAL ENERGY YIELD

VS.

TIME OF DAY

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

h

July

November

JHIMPIR WIND POWER PLANT

Total 33 wind Turbines in Jhimpir, 70 km from Karachi with initial investment of 110M USD

Five wind turbines (1st Phase)

Each capable of producing 1.2 megawatts of electricity equaling 6MW

The project will be expanded to 50MW in the next few years from 2009

Joint venture between public and private

The Government of Pakistan has given support for the development of renewable energies, by creating the Alternative Energy Development Board (AEDB).

The AEDB was provided land for wind power generation by the Province of Sindh

The AEDB allocated the land to the Fauji Fertilizer Company (FFC)

The FFC hired world leading consultant firm Lahmeyer International, Germany

(LI) as the project consultant for the feasibility study

Location of the wind farm site

Legal frame in Pakistan

Background

Government of Pakistan created the Alternative Energy Development Board (AEDB) in May 2003 to act as the central national body on the subject of Renewable Energy.

Air Marshal (Retd) Shahid Hamid was appointed as the Chairman of the Board

Working actively in the fields of:Wind Power, Solar Power,Micro Hydels, Biomass

Alternative Energy Development Board (AEDB)

TARGET OF AEDB

Ensure 10% Share of Alternative Energy Technologies in National Grid by Year 2015

Act as Central Agencya- Awarenessb- Policiesc- Facilitate Creation of Base in Pakistan for Alternative Energy (AE) Technologies

Develop National Plans and Policies for AEa- Tax Holidaysb- Encourage Private Sectorc- Facilitate Investment

Foster Sustainable Development a- Facilitate Enhancement of Technical Skills.b- Initiate & Incubate Projects

BENEFITS FOR SPONSORS – LEGAL

FRAME 100% power evacuation / Guaranteed Sale

Wind Risk is covered by the Gov. of Pakistan

Land for farming provided by GOP

Guaranteed Returns for Investors

18% ROE in dollar terms

Protection against foreign exchange rate fluctuations

Protection against inflation in local markets

No Taxes (income / import etc)

Benefit of Carbon Credits shared

Complete Security package to protect Interests of Investors & Lenders

Repatriation of money to foreign investors

LOI – PROCEDURE IN PAKISTAN

Registration with AEDB

Submission of proposal to AEDB

Issuance of LOI (Letter of intent) by AEDB on submission of fee of

approx: $7000 - after due diligence of financial strength of the company

Land allocation (on availability from Gov. of Sindh)

Feasibility Study (for onward submission to NEPRA & NTDC/KESC after

AEDB's vetting and approval)

Generation License (from NEPRA)

Power Purchaser's commitment for purchase of power

Tariff acceptance.

Energy Purchase Agreement

Implementation Agreement

letter of support LOS (to be issued by AEDB)

A TYPICAL WIND FARM PROJECT PLAN

Reference: modified from AEDB Pakistan website

START 05/04/11FINISH 01/23/13

WIND TARIFF (ON-SHORE)

COMPARED

Wind tariff:

US Cents 10.3 to 12.1 per Kwh

Thermal (oil/coal/gas) and hydel power tariff, taking in account transmission and distribution:

US cents 19.1 to 26.2 per Kwh

Some Practical Issues

SELECTING A WIND TURBINE SITE

Wind Conditions

Looking at nature itself is usually an excellent guide to

finding a suitable WF site.

trees and shrubs (wind direction)

move along a rugged coastline (notice that centuries

of erosion have worked in one particular direction)

Meteorology data, ideally in terms of a wind rise

calculated over 30 years is probably your best guide,

Maybe wind turbines are already in the area

SELECTING A WIND TURBINE SITE

Grid Connection

Large WTG (Wind Turbine Generators) have to be connected to the electrical grid (10-30 kV)

Grid Reinforcement

The electrical grid near the WTG should be able to receive the electricity coming from the turbine.

Soil Conditions

Both the feasibility of building foundations of the turbines, and road construction to reach the site with heavy trucks must be taken into account with any wind turbine project.

Pitfalls in Using Meteorology Data

Precision measurement of wind speeds, and thus wind energy is not nearly as important for weather forecasting as it is for wind energy planning, however.

Wind speeds are heavily influenced by the surface roughness of the surrounding area, of nearby obstacles (such as trees, lighthouses or other buildings), and by the contours of the local terrain.

WEIGHTS / NUMBERS

Tower of GE 1.5: 64.7m 86 tons 85m 98 tons 100m 113 tons

Nacelle: 52 tons Hub: 14 tons Blades: 21 tons

50MW WF with GE1.5 Hub 64.7m:33 x 173 tons = 5,709 tons

Number of Transport Trucks:

Tower: 3

Nacelle: 1

Hub: 1

Blades: 3

Total: 8

For a WF with 50MW

33 x 8 trucks = 264 heavy trucks

TRANSPORT

TRANSPORT

FOUNDATION

CRANE

TOWER INSTALLATION

TOWER INSTALLATION

NACELLE AND BLADE INSTALLATION

TRANSFORMER / CABLE

ECONOMIC COST-BENEFIT ANALYSIS

Economic value of the displacement of fossil fuel plants:

• Reduction in fossil fuel consumption: $80 M

• Capital and operating cost savings: $26 M

• Emission reductions: $27 M

• Greater energy independence: $2 M

Economic costs of the project:

• Project itself: $110 M

• Grid integration: $7M (subsidy)

• Environmental effects: $10M

Net profit : $ 135M - $120M = $15M

Payback period: 7-8 years

Good Investment!

Q & A