Renewable Energy to Tackle Pakistan's Electricity Crisis

[Riaz Haq]

In June 2007, the power cuts in Pakistan lasted no more than 3 or 4 hours a day. Today, in extremely hot weather, Pakistanis have to endure without electricity for 8 to 10 hours a day. Industrial production is suffering, exports are down, jobs are being lost, and the national economy is in a downward spiral. By all indications, the power crisis in Pakistan is getting worse than ever.

Extended Load-shedding:
Extended electricity load shedding in Karachi's five major industrial estates is causing losses in billions of rupees as the production activity has fallen by about 50 per cent. KESC, Karachi's power supply utility, is dealing with with a shortfall of around 700MW against a total demand of 2200MW. Almost all forms of power generation from fossil fuel to hydroelectric to nuclear are down from a year ago. The economy, major exports and overall employment are also down and the daily wage earners are suffering. The government owes over Rs. 10b to the independent power producers (IPPs) and paying them will help bring them into full operation and ease the crisis at least partially.

Electricity Demand:
As discussed in an earlier post, Pakistan's current installed capacity is around 19,845 MW, of which around 20% is hydroelectric. Much of the rest is thermal, fueled primarily by gas and oil. Pakistan Electric Power Company PEPCO blames independent power producers (IPPs) for the electricity crisis, as they have been able to give PEPCO only 3,800 MW on average out of 5,800 MW of confirmed capacity. Most of the IPPs are running fuel stocks below the required minimum of 21 days. IPPs complain that they are not being paid on time by PEPCO.

Per capita energy consumption of the country is estimated at 14 million Btu, which is about the same as India's but only a fraction of other industrializing economies in the region such as Thailand and Malaysia, according to the US Dept of Energy 2006 report. To put it in perspective, the world average per capita energy use is about 65 million BTUs and the average American consumes 352 million BTUs. With 40% of the Pakistani households that have yet to receive electricity, and only 18% of the households that have access to pipeline gas, the energy sector is expected to play a critical role in economic and social development. With this growth comes higher energy consumption and stronger pressures on the country’s energy resources. At present, natural gas and oil supply the bulk (80 percent) of Pakistan’s energy needs. However, the consumption of those energy sources vastly exceeds the supply. For instance, Pakistan currently produces only 18.3 percent of the oil it consumes, fostering a dependency on imports and that places considerable strain on the country’s financial position. On the other hand, hydro, coal, wind and solar are perhaps underutilized and underdeveloped today, as Pakistan has ample potential to exploit these resources.

Gilani Government's Response:
Neelum-Jhelum hydroelectric project, first formally announced by former Minister Omar Ayub on June 10, 2007, is finally starting in earnest under the PPP government of Prime Minister Yousaf Raza Gilani. This hydro project is expected to add 963MW power generating capacity at a cost US $2.2 billion, according to Business Wire. Prior to this project, the new Pakistani Prime Minister signed a deal with a Chinese company, Dong Fong, for setting up 525 MW thermal power plant with an investment of $450 million at Chichoki Mallian (Sheikhupura). Both of these projects are expected help partially close the 3000 MW gap that exists today between supply and demand in Pakistan.

Renewable Energy Opportunities:
In response to the warnings of energy crisis in Pakistan, President Musharraf's government recognized the need and the potential for renewable alternatives and, in 2006, created Alternative Energy Development Board to pursue renewable energy. In particular, AEDB is focusing on wind and solar as viable alternatives. AEDB is facilitating setting up of small renewable energy projects in line with government’s policy of promoting the use of renewable energy in the country’s power generation mix, says the board’s chief executive officer Mr Arif Alauddin. AEDB has recently issued Makwind Power Private Ltd (MPPL) a Letter of Intent for the setting up of 50MW wind farm at Nooriabad in Sindh, as part of its efforts to facilitate 700 MW wind energy by 2010.


According to data published by Miriam Katz of Environmental Peace Review, Pakistan is fortunate to have something many other countries do not, which are high wind speeds near major centers. Near Islamabad, the wind speed is anywhere from 6.2 to 7.4 meters per second (between 13.8 and 16.5 miles per hour). Near Karachi, the range is between 6.2 and 6.9 (between 13.8 and 15.4 miles per hour). Pakistan is also fortunate that in neighboring India, the company Suzlon manufactures wind turbines, thus decreasing transportation costs. Working with Suzlon, Pakistan can begin to build its own wind-turbine industry and create thousands of new jobs while solving its energy problems. Suzlon turbines start to turn at a speed of 3 meters per second. Vestas, which is one of the world's largest wind turbine manufacturers, has wind turbines that start turning at a speed of 4 meters per second. In addition to Karachi and Islamabad, there are other areas in Pakistan that receive a significant amount of wind.

In only the Balochistan and Sindh provinces, sufficient wind exists to power every coastal village in the country. There also exists a corridor between Gharo and Keti Bandar that alone could produce between 40,000 and 50,000 megawatts of electricity, says Ms. Katz who has studied and written about alternative energy potential in South Asia. Given this surplus potential, Pakistan has much to offer Asia with regards to wind energy. In recent years, the government has completed several projects to demonstrate that wind energy is viable in the country. In Mirpur Sakro, 85 micro turbines have been installed to power 356 homes. In Kund Malir, 40 turbines have been installed, which power 111 homes. The Alternative Energy Development Board (AEDB) has also acquired 18,000 acres for the installation of more wind turbines.

In addition to high wind speeds near major centers as well as the Gharo and Keti Bandar corridor, Pakistan is also very fortunate to have many rivers and lakes. Wind turbines that are situated in or near water enjoy an uninterrupted flow of wind, which virtually guarantees that power will be available all the time. Within towns and cities, wind speeds can often change quickly due to the presence of buildings and other structures, which can damage wind turbines. In addition, many people do not wish for turbines to be sited near cities because of noise, though these problems are often exaggerated. Wind turbines make less noise than an office and people comfortably carry on conversations while standing near them.

As is painfully evident in summers, Pakistan is an exceptionally sunny country. If 0.25% of Balochistan was covered with solar panels with an efficiency of 20%, enough electricity would be generated to cover all of Pakistani demand. In all provinces the AEDB has created 100 solar homes in order to exploit solar energy.

Solar energy makes much sense for Pakistan for several reasons: firstly, 70% of the population lives in 50,000 villages that are very far away from the national grid, according to a report by the Solar Energy Research Center (SERC). Connecting these villages to the national grid would be very costly, thus giving each house a solar panel would be cost efficient and would empower people both economically and socially.

Coal Power and Hydroelectricity
In addition to high winds and abundant solar potential, Pakistan has the fifth largest coal deposits in the world. The negative environmental effects of coal burning can be be mitigated by making use of the latest clean coal technologies that limit noxious gas exhaust into the atmosphere.

Pakistan also has some deposits of natural gas in the Potwar Plateau region and near the border between Balochistan and Sindh, but these are likely to disappear within 20 years.

Because of the presence of many rivers and lakes, it makes sense for Pakistan to build dams to support water management and electricity generation projects. However, it must be done with care to avoid damage to the environment or loss of farmland.

Financial and Policy Incentives
Despite the fact that Pakistan is so well endowed with wind and solar potential, only a few projects such as those mentioned above have been completed. One of the reasons why this has occurred is that Pakistan does not have major financial incentives available for those who want to install wind turbines or solar panels. Let us look at the case of India, Pakistan's neighbor. Despite having less potential for wind, India now has the world's fourth largest number of wind turbines installed at 7,093 MW, according to India: Renewable Energy Market report. Ahead of India are Germany at 21,283 MW, Spain at 13,400 MW and the US at 12,934 MW. In Germany, Spain and India, those who install wind turbines and solar panels are guaranteed a certain rate per kilowatt hour. In India, this varies according to the technology and the area. The Ministry of New and Renewable Energy, India reports that in most areas, between 2500 and 4800 rupees are guaranteed for solar panels, and for wind turbines, between 250,000 and 300,000 rupees are awarded.
Because of the above incentives, the cost of wind in India is between 2 and 2.5 cents per kilowatt hour while in Pakistan, the cost is 7 cents. In December 2006, President Musharraf announced a national renewable energy policy. This policy means that small projects do not need approval and that any person can put up their own project. However, there are no financial incentives for doing so. At the moment, all renewable energy equipment has no sales or income tax and is free of custom duty, but these incentives are not enough to stimulate major growth in the renewable energy market where ROIs and other financial ratios have a long gestation or breakeven period. In certain situations, such as the textiles and other Karachi industrial units losing production and export opportunities due to power cuts, it may make sense for the owners to join hands and build power generation capacity they can rely on.

Conclusion
In addition to coal and hydro electricity generation, Miriam Katz argues that it is clear that Pakistan is a suitable country for the installation of wind and solar: due to high winds near cities; the presence of rivers and lakes as well as the availability of wind turbines from nearby India. There are also other reasons for installing renewable energy. It is quite normal for extended power outages to happen on a daily basis in the country, but this cannot continue if the Pakistani economy is to grow. In March 2007, President Musharraf stated that renewable energy should be part of the push to increase energy supplies by 10 to 12 percent every year. The government also set a target of 10 percent of energy to come from renewables by 2015. If the new PPP-led government follows through with aggressive renewable energy push, Pakistan could be an Asian leader in renewable energy given its natural resources of wind and solar as its strategic endowments.

Related Links:

Renewable Energy Businesses in Pakistan

Pakistan Council of Renewable Energy Technology

Pakistan Policy on Renewable Technology

Sugarcane Ethanol Project in Pakistan

Community Based Renewable Energy Project in Pakistan

[Riaz Haq]

Here's today's news that caught my attention:

"Pakistan, Turkey sign wind energy pact"

Islamabad, Jan 17 (Xinhua) Pakistan Saturday signed a wind energy pact with a Turkish firm.

Pakistan’s water and power minister Raja Pervez Ashraf and chief executive of the Turkish company signed the agreement in Islamabad, the News Network
International news agency reported."

Here's a rather skeptical assessment I received from a person involved in the energy sector in Pakistan:

I reached the conclusion that based on economics,wind energy was best option and even Government Of Pakistan issued 80 letters of intent in this respect .I was trying to sell GE wind Turbines from Germany.But it took so long that when it comes to the stage of final negotiations,we found that all factories in the world are booked for two years and delivery not possible before 3 years.Most American companies found partners in India who capitalized on the situation and started manufacturing under license from foreign companies.We could not even get from India and chapter was closed.Then there was political mess in Pakistan ,not yet get cleared. Only this week Water And Power Ministry announced that it has made an agreement with a Turkish Company to build first Power Plant in Sindh using Wind Turbines.May God save this Turkish Company.

[Riaz Haq]

Here's a Power Engg website report on renewable energy potential in Pakistan:

Pakistan's geography is most conducive to exploitation of solar energy as it is 6th most fortunate country in the world in terms of solar irradiance and where sunshine availability is 8-10 hours per day over much of the plans of Sindh, Balochistan and Southern Punjab.

Solar energy intensity in sunbelt of Pakistan is approximately 1,800-2,200 Kwh per square meter per day which is most favourable for exploitation of solar energy. Potential capacity for installation of solar photovoltaic power by some estimates is 1,600 GW, which is 40 times greater than present consumption. Based on range of currently possible conversion efficiencies in area of one sq km has potential to produce 40-55MW power and can generate revenue conservatively estimated at Rs 1 billion per month at current average tariffs of Rs 10 per Kw-hr.

Since solar power is available only during times of sunshine, it can at most meet up to 30% of daily consumption without need for energy storage such as in underground salt deposits. Wasteland and desert of Thar, lower Sindh & Balochistan are prime contenders to establish large solar farms with capacities of generating more than 250 gigawatts electric power to meet energy shortfall over coming decades, says expert Samir Hoodbhoy who participated in technology breakthroughs in robotics systems, semi-conductors and first mobile cellular system developed. He directed creation of Central Design Bureau of Pakistan Steel Mills in 1988-92.

Hydrokinetic and solar thermal are two most promising alternate renewable energy solutions that can be used to reduce Pakistan's rising $10 billion annual fuel imports and energy deficits and at same time preserve environment by not adding to hazards of increased carbon gases emissions caused by use of furnace oil and natural gas. Deserts of Tharparkar & Balochistan have potential for producing several hundreds of GWatts power.
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Alternate Energy Development Board AEDB says Nokundi in Chagai district is one of world's most ideal wind corridors where wind speed is almost constantly 12.5% higher than average required for energy generation. Other parts of wind corridor includes a 300-kilometre-long area with wide open spaces from Dalbandin to Taftan, a town on border of Iran, Gharo to Keti Bandar in Thatta district of Sindh province which is 60 km long and 170 km deep corridor and estimated to have a power generation potential of 50,000MW. Similar is case of Lasbela district of Balochistan province, where wind energy at sustainable speed, good for power generation is available with little variation in seasons (five meters per second in winter and eight meters per second in summer).

Hoodbhoy says in Balochistan potential for wind generation is attractive, current unsettled political, socioeconomic conditions are disincentives for construction of large wind turbines and solar farms with capacities of 1MW. Under settled conditions, this region could easily become attractive carbon gas free energy producing center.

Mini wind farming projects (1-50 kWatts) along with small solar farms scattered over remote inaccessible areas presents attractive proposition that will help mitigate localized needs of electricity for lighting, communications, pumping water with tube wells for irrigation, domestic consumption. Larger wind power and solar power farms with individual production capacity of 0.5-500 MW developed along wind corridors and desert hinterland of Balochistan, respectively, have capacity to radically alter socioeconomic plight of Pakistan by resuscitating agricultural and industrial sectors.

http://www.power-eng.com/news/2012/02/22/wind-power-and-solar-energ...

[Riaz Haq]

Here's a Reuters' report on $3 billion Chinese investment in wind energy in Pakistan:

Chinese oil and gas company United Energy Group Ltd (0467.HK) said on Wednesday it plans to invest $3 billion in a wind farm project in energy-starved Pakistan and is in talks to buy equipment from mainland suppliers.

United Energy, which paid BP (BP.L) $775 million for oil and gas assets in Pakistan in 2010, said it plans to construct the wind farm in several phases. It did not disclose the targeted total capacity for the project or provide a timeframe.

The company said, however, it had already obtained approval from the Pakistan government to construct a wind power project with a capacity of 500 megawatts.

Pakistan, which suffers chronic shortages of electricity, is offering clean energy producers higher rates for renewable power as it seeks to boost production, while diversifying energy supply away from oil and gas.

The major suppliers of wind power equipment in China are Sinovel (601558.SS) and Xinjiang Goldwind Science and Technology (002202.SZ)(2208.HK).

http://www.reuters.com/article/2012/05/30/us-china-pakistan-windfar...

[Riaz Haq]

Here's PakTribune on WAPDA's power & water projects:

The Water and Power Development Authority (WAPDA) here on Thursday informed the Senate Standing Committee on Water and Power that WAPDA is working on 20,000 megawatts (MW) hydel power generation projects and assured that 10,276 MW at lowest rates will be made available in the country by 2020.

The Senate body met in the Parliament House with Senator Zahid Khan in the chair, Minister for Water and Power Chaudhry Ahmed Mukhtar, secretary Zafar Mehmood and Petroleum Secretary Dr Waqar Masood Khan also attended the meeting. The members of the committee questioned that who would be judging the claim of WAPDA in 2020 when no one from the members of this committee will be in the parliament. However, WAPDA officials assured the committee that what they are committed to make sure through their efforts by 2020 that 10,276 MW power through hydel projects would be available in the country.

A WAPDA official explained that less than committed financial resources is the main hurdle in delay and cost overrun on water and power sector development projects and sought help of the committee in providing funds to WAPDA as per committed amount to make its planning predictable.

WAPDA Chairman Shakeel Durrani was optimistic about the average annual flows and water storage potential of the country and informed that some 17.8 million acres feet (MAF) water would be available for storage in future in the country (enough for three dams like Diamer Bhasha Dam).

The live storage of the Diamer Bhasha Dam would be 6.8 MAF and WAPDA has already released Rs 5 billion for land acquisition and Rs 13 billion for construction or establishment of required infrastructure for the construction of dam like roads, residential colony and offices power availability. Explaining the access water availability scenario, he informed that average annual flows to Kotri Downstream were 31.3 MAF during 1976-2010. However, during 2012 alone 54.5 MAF flows to Kotri Downstream were recorded.

http://paktribune.com/business/news/WAPDA-working-on-20000MW-hydel-...

[Riaz Haq]

Here's an ET report on Russian interest in building Diamer Bhasha dam:

Russia is seeking direct award of a construction contract for the $13 billion Diamer Bhasha Dam in a government-to-government deal without resorting to international competitive bidding, sources say.

Faced with water and power shortages, Pakistan is looking for funds from China and Russia, who in turn want a government-to-government deal without international bidding.

The government’s search for funds came after multilateral donors asked Pakistan to get a no-objection certificate from India for the dam’s construction.

China and Russia want a similar arrangement for undertaking the Iran-Pakistan gas pipeline project, which has faced fierce opposition from the United States.

According to sources, Pakistan and Russia are likely to strike a final deal on the dam during visit of Russian President Vladimir Putin to Islamabad next month.

“A meeting of Pak-Russia inter-ministerial commission will be held before the visit of Russian president, which will work out a mechanism for financing mega projects,” a government official said.

In a meeting of the Inter-governmental Commission (IGC) held here on Monday, government officials gave a detailed briefing to the Russian team on planned energy projects. However, sources said, Russia made no firm commitment to the dam.

According to the official, it was just a preparatory meeting to discuss different projects, which could be tabled during deliberations with the Russian president.

In the IGC meeting, the Russian side was told that Bhasha Dam was a strategic project with power generation capacity of 4,500 megawatts to overcome the energy crisis. It will have water storage capacity of 8.5 million acre feet to feed the agricultural sector.

Chinese offer

The Chinese government has already offered Pakistan skilled labour for the construction of Bhasha Dam. China has 17,000 skilled workers, who have worked on the giant Three Gorges Dam, which is producing 30,000 megawatts of electricity.

On the other hand, multilateral donors have asked Pakistan to seek a no-objection certificate from India to pave the way for financing the dam, which they say is situated in a disputed territory. Instead, they have offered to finance another project – Dasu hydropower, but the government has rejected the plan and wants to complete Bhasha Dam first.

On Monday, a delegation of the World Bank, headed by Country Director Rachid Benmessaud, called on Federal Water and Power Minister Ahmed Mukhtar and once again offered to finance phase-I of the Dasu project.

Dasu hydropower project is situated 7 km upstream of Dasu village on Indus River and 350 km from Islamabad. The project is located in Kohistan district of Khyber-Pakhtunkhwa.

http://tribune.com.pk/story/435035/diamer-bhasha-dam-russia-wants-t...

[Riaz Haq]

Here's an example in Express Tribune of what the Pak military is doing to alleviate the energy crisis and boost the economy:

ISLAMABAD: Subsidiaries of Fauji Foundation – Foundation Wind Energy-I Limited and Foundation Wind Energy-II Limited – are making an investment of $251 million in setting up two wind power projects of 50 megawatts each in Gharo, Sindh.

In this connection, the two companies and the government signed an implementation agreement here on Tuesday. The accord was inked by Brigadier (Retired) Dr Gulfam Alam, Project Director of the two projects and Arif Alauddin, Chief Executive Officer of Alternative Energy Development Board (AEDB), on behalf of the government.

Speaking on the occasion, Managing Director of the two companies, Lieutenant General (retd) Muhammad Mustafa Khan said the Asian Development Bank (ADB), Islamic Development Bank (IDB) and a syndicate of local banks were providing most of the finance for the wind farms.

Debt financing, which is 75% of the project cost, is Shariah-complaint and is the first of its kind in Pakistan. The remaining 25% of the cost is being financed via equity investment, arranged by the Fauji Foundation group, CapAsia Singapore and Tapal Group Karachi.

ADB and IDB will provide $124 million and the consortium of local banks will arrange $63 million.

Khan said he was targeting to enter into an energy purchase agreement for the two projects this month and achieve financial close immediately after that. Both projects are expected to start commercial production in the second quarter of 2014.

Fauji Fertiliser Company Wind Energy Limited (FFCEL) has already established a 50MW wind power plant, which would start operation this month.

AEDB CEO Arif Alauddin commented that the two wind projects of Fauji Foundation subsidiaries were trendsetters in many ways and opening doors to investment in the Gharo Keti Bandar wind corridor.

He said 45 wind power projects of around 3,200MW were under process, adding the Sindh government had leased around 26,000 acres of land to AEDB for 18 projects with a cumulative capacity of 906 megawatts, which were at different stages of development.

Of these, projects having combined capacity of 106MW are ready for commencement of operation and projects producing a further 100MW will achieve financial close shortly.

“Wind projects being installed by Fauji Foundation will cost less than Rs10 per unit,” he said, adding wind and solar projects would have their impact on the energy mix and reduce circular debt.

http://tribune.com.pk/story/481294/accord-signed-fauji-foundation-i...

[Riaz Haq]

Here's PakistanToday on 24 wind projects funded by ADB:

KARACHI - The 56.4 Megawatt Asian Development Bank (ADB) Funded Wind Power Project Jhampir would generate electricity from January 2013. A project of Fauji Fertilizer Company Energy Limited (FFCEL) would also be made operational from next week and it would feed 50 Megawatt of electricity in the national electricity transmission system. In total more than 106 Megawatts of electricity would be credited into the national power transmission system from next.
The ADB is financed the $143 million Jhampir windmill project and it was developed by Zorlu Energy Pakistan, the local subsidiary of a Turkish company. Jahmpir project is spread over 1148 acres at Jhampir of Thatta district in Sindh. A total of 34 wind turbines with power generation capacity of 1.8 megawatt each have been erected till date. The only formality left before inaugurating the power generation operations is a pending approval from National Transmission and Dispatch Company (NTDC). Zorlu Energy’s Mumtaz Hassan said that “we have completed all the work on the project and are waiting for the approval to start operation, from next month”. An inspection team of independent engineers would inspect the site next week. Mumtaz added that “on our side we have completed the testing and next week independent engineers will be here inspect the project and issue the certificate.”
Project Direct Mr. Murad said that lastest technology had been utilized for the development of Jhampir Wind Energy Project. He said that Zorlu can develop more wind energy projects to generate electricity from this renewable source.
The Alternative Energy Development Board (AEDB) was pivotal in assisting Zorlu Energy to initiate this project. AEDB Deputy Director Naeem Memon said that Ghoro-Ketti Bandar wind corridor has a potential to generate 40,000 to 50,000MW electricity from this free and clean source of energy. He told that another, Ghoro-Ketti Bandar wind corridor spreads across 110/70 kilometers in the Sindh and Balochistan province. He said that as many as 24 projects have been identified for wind and power generation and many companies had been approached AEDB for developing these projects. He said that the country would also get carbon credits for about 95,000 tons that would be shared between seller and the purchaser.
It is pertinent to mention that Asian Development Bank is also funding several projects in Sindh province aimed at poverty reduction and energy development. The major projects include Sindh Costal Community Development Project (CCDP) launched to reduce poverty for rural households in Sindh Province by guaranteeing ecologically sustainable income opportunities and access to services for poor residents in eight coastal talukas of Thatta and Badin Districts.

http://www.pakistantoday.com.pk/2012/12/20/city/karachi/adb-to-fund...

[Riaz Haq]

Here's Daily Times on wind energy farm projects in Pakistan:

Federal Minister for Water and Power Ch Ahmed Mukhtar has said that 45 Wind Power Projects of around 3,200 megawatts (MW) capacity are under completion process, out of which some are ready for commercial operation.

Among them wind projects worth 106 MW are ready for commercial operation, while another 150 MW projects are under construction. The next year will see at least 10 more projects – an investment of over $2 billion, the minister said while addressing as chief guest in the launching ceremony of Commemorative Postal Stamp on inauguration of Pakistan’s first 50 MW wind energy project by Fauji Fertilizer Company (FFC) on Wednesday.

He said that commencement of commercial operation of FFC Wind Farm Project is the beginning of exploiting the wind potential of renowned Gharo-Keti Bandar Wind Corridor- an area that alone offers power generation potential of 50,000 MW. I feel exalted that many more wind power projects are in pipeline and would commence their commercial operations one after another in the coming months.
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Alternative Energy Development Board (AEDB) CEO Arif Allauddin in his welcome address said that the country would see more new projects in the alternative energy sector. Without taking away any credit from FFC, I wish to quickly recognise a number of other organisations and individuals without which this historic achievement would not have been possible – even for the competent team of FFC.

Allauddin said just like 8,000 parts of every wind turbine that must work in synchronisation, a number of agencies, organisations and individuals worked with dedication and unity of purpose to achieve this feat in such a short time.

This is not all. Recent data collected by AEDB has revealed that our wind corridors are not only rich in the wind resource, but the solar radiations here are of the highest quality – making this as one of the rare corridors in the world, where both wind and solar projects are viable.

FFC Managing Director Lt General (r) Khalid Naeem Lodhi also spoke on the occasion and said that the company is planning to invest more capital in the power sector and other wind project with the collaboration of China is under construction and soon would be completed.

Earlier, the minister launched the Commemorative Postal Stamp on the inauguration of the first wind power project.

Pakistan is blessed with enormous wind energy potential. Studies indicate that theoretical potential of wind energy in Pakistan is around 346,000 MW, out of which Gharo~Keti Bandar wind corridor solely has a potential of around 50,000 MW. Utilization of this enormous potential of clean, economical and inexhaustible source of energy can play a vital role in fulfilling the future energy demands of the country.

AEDB is facilitating the private sector in developing wind power projects in the country. The 49.5 MW wind power project developed by FFC Energy Ltd is the first among many others, which are at various stages of development. Four other wind power projects being developed by ZorluEnerji (56.4 MW), Three Gorges Pakistan (49.5 MW) and Foundation Wind Energy I and 11 (50 MW each) are under construction. ZorluEnerji has already completed the installation of wind turbines for their project and the project is expected to become operational by end of this month. In addition to this, wind power project of 400-600 MW capacity are expected to achieve Financial Close by end of 2013.

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AEDB is enacted to facilitate the private sector for establishing Renewable Energy projects based on wind, solar, micro-hydel, bio-diesel, biomass, waste to energy, fuel cells, tidal, wave energy etc. AEDB is also vested with the responsibility of formulation of national strategies, policies, plans and programmes for development of alternative and renewable.

http://www.dailytimes.com.pk/default.asp?page=2013\01\03\story_3-1-2013_pg5_6

[Riaz Haq]

Here's Re-charge report on Nordex supplying wind turbines for wind farms in Pakistan:

German wind group Nordex has completed its first project in Pakistan.

The 50MW Jhimpir wind park, which consists of 33 1.5MW Nordex turbines, is 100km northeast of Karachi.

The project was bankrolled by fertiliser group Fauji, a subsidiary of the Fauji Foundation industrial conglomerate.

Nordex has signed supply deals for five more wind farms in Pakistan, each comprising 20 of its N100/2500 turbines. Fauji, Gul Ahmed Energy, Metro Power and Yunus Energy are the customers for those projects.

Nordex expects construction at two of those other wind farms, with a combined capacity of 100MW, to start this year.

With a growing power demand and blackouts common, Pakistan is committed to expanding renewable energy, Nordex says.“The fixed feed-in remuneration of around $0.1466 per kWh for a period of 20 years for wind-produced electricity is making the market attractive for investors," it adds.

Nordex initially oversaw the Jhimpir project via its Beijing subsidiary, but has now established a separate local company in the Pakistan capital, Islamabad.

http://www.rechargenews.com/wind/article1313648.ece

[Riaz Haq]

Here's a press release of Hitor Group in Pakistan:

Hitor Group Inc. is pleased to announce it has executed an agreement with Orient Renewable Energy (Ptv) Ltd. relating to the Hitor technologies including a Manufacturing Plant for the fabrication of construction components and systems for housing and International Housing Development Projects.

Hitor will oversee the development, construction, commissioning and operations of a plant for construction components and systems including but not limited to a manufacturing plant for Structural Steel Systems™ or other Hitor technologies. Orient Renewable Energy (Ptv) Ltd. will contribute it's contacts, licenses (as needed), agreements and relational know how and development work to date as well as overall Primary Project Development services in the provision of process development, negotiations with the local Government and approval authorities of and the financing required for the manufacturing plant.

http://www.marketwire.com/press-release/hitor-group-inc-executes-li...