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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