wind sector brief
TRANSCRIPT
WIND ENERGY POWER PROJECT
DEVELOPMENT in
PAKISTAN
Sector Information Memorandum
INDUSTRY ANALYSIS
Pakistan has a great potential of Renewable Energy (RE).
Among all sources of RE, wind is widely and abundantly available in
Pakistan which can be utilized for generation of power. Government
of Pakistan (GoP) is taking keen interest to harness wind energy
potential and has taken strong measures to initiate wind power
projects in the country. GoP is focusing in the south, coastal belt, for
the development of wind energy in Pakistan. The foremost focus of
GoP is on Gharo - Keti Bandar wind corridor, where various projects
each of 50 MW capacity are in the different stages of development.
In the context of wind based power, GOP has guaranteed to
purchase all generated power.
Pakistan Meteorological Department has conducted a
detailed Wind Power Potential Survey of Coastal Areas of
Pakistan with the help of National Renewable Energy Laboratory
(NREL) USA. This study has identified potential areas where
economically feasible wind farms can be established.
Acknowledging the importance of Renewable Energy Technologies for
power generation, the Government of Pakistan created Alternative
Energy Development Board (AEDB) in May 2003 to act as the national
body on the subject of Renewable Energy. The main goal is to
introduce Alternative/Renewable Energy at an accelerated rate to
achieve 10 percent share of RE in the energy mix of the country.
AEDB has earmarked a potential wind power generation area
that cover 9700 sq. km in Sindh, with suitable average annual
wind speed of 7 m/s at 30 meters. The gross wind power
potential of this area is 43,000 MW.
SECTOR FEATURES
Wind data analysis by AEDB of the area wind farms suggest that
the region is high potential area with the annual average wind speed
more than 7.3m/s at 80m (above ground level). Government of
Pakistan is giving the guarantee of variability of wind speeds (wind
risk) in this region. AEDB has developed benchmark wind speed table
for the region and GoP is taking guarantee of variability of wind speed
on this benchmark table. This, wind risk, guarantee by GoP will be
critical in securing smooth repayments of the debt amount to the
lending agencies during the operation of the project.
PROPOSED AREA
Wind data analysis and surveys of this region suggest that
Gharo - Keti Bandar wind corridor is one of the most promising areas
where wind power projects can be viably installed.
Figure 1: Outline of Jhimpir Wind Farms Area
The Gharo-Keti Bandar corridor can be divided into two distinct
areas: Gharo Area with its “intra-tidal” and Jhimpir Area with its
“inshore” wind farm construction. In Jhimpir is terrain of the area is
flat with small change in altitude. The proposed site lies under
roughness class 1.5. The ground is hard and rocky; the subsurface soil
also includes clay and silt. In Gharo, the land is marshy and a tidal
study needs to be done to know the tide patterns before installation
can be achieved.
The whole corridor is exposed to very strong South Westerly
winds, wind data analysis of the area suggest that, 80% wind is
blowing from south west direction. The site is easily accessible
through metallic roads. The elevation of the sites ranges from sea-
level to an elevation of 150m above sea level ( Jhimpir sites are at an
elevation whereas all of Gharo-keti bandar sites are at sea level) .
Following are the few other facts of the site:
Climatic conditions of the site are quite moderate. Atmospheric
temperature remains between 25 – 43 °C with an annual
average of 26°C. Precipitation is scarce.
Sustained Good winds are present all around the year with high
season being from March to October.
The project area is easily accessible through metallic road
which can be used to transport the WTGs.
Commissioning of wind power projects in Jhimpir area has
already begun. Zorlu wind power plant has five turbines up.
FFC’s farm has received the regulatory approvals (Tariff, EPA,
IEE etc.). Various other national and international companies
are negotiating EPC contracts for setting up of wind power
projects. Due to these technical activities in the region, the
technical knowhow and infrastructure capability is becoming
available in the area.
SECTOR SALIENTS
As per AEDB’s requirement feasibility Study for a wind farm is
divided into following five sub-studies:
• Wind Risk Coverage
AEDB has developed benchmark wind speed table for Jhimpir
region and GoP is taking guarantee of variability of wind speed
on this benchmark table. Government of Pakistan is giving the
guarantee of variability of wind speeds (wind risk) in this region.
• Guaranteed Power Off-take
Evacuation of power generated through renewable energy
sources/ wind is obligatory for the government agencies (RE
Policy 2006). National grid is available within the area. Grids of
132 / 11 KVA are available in the close vicinity of the project
site; Gharo, Jhimpir and Jherk are the main grid stations which
are close to the project site and can off take the generated
power the area Wind IPPs.
Rate of Return
Government has allowed 15% ROE to all the IPPs in the thermal
sector. But wind this has been increased to 17%. NEPRA has
already allotted tariff based on 17 % ROE in wind power.
• Protection against Political Risk
Policy guarantees protection to investments against
nationalization, expropriations or any changes in the law that
may affect them adversely.
ADB’s Guarantee
Asian Development Bank has already offered US$ 450 million
for providing a counter guarantee to the financiers of the Wind
projects. This will provide further safety to all the financiers of
this sector. This amount will almost provide guarantee for first
five projects in wind.
• Wheeling Provisions for two party deals
This policy provision will become a great step forward in
resolving the circular debt problem as electricity could be
wheeled and used by some industrial outfit directly.
• Sharing of Carbon Credits on top of Tariff
This enhances the Rate of return further in Wind Power as in
these projects quite a number of Carbon Credits will be
generated thus generating quite substantial income from the
sale of those credits. NEPRA has already ruled in favour of
sharing of this revenue by the power producer.
• No Import duties on Equipment
• No Income Tax/ Withholding Tax
• Convertibility of Pak Rupees into US $