Proposals for 3,000 Megawatts to Boost Pakistan's Wind Power Sector

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Pakistan's Alternative Energy Development Board (AEDB) is mapping out the future of wind power in the country's energy mix.

AEDB has received proposals from several investors that would provide an additional 3,000 megawatts (MW) of power if successfully executed. This is in addition to six Independent Power Producers (IPPs) that have been issued with generation licenses for projects that will be providing 500 MW of power by 2013.

Land has been allocated to 18 IPPs for wind power projects of 50 MW with an aggregate capacity of 900 MW. These projects are at various stages of development. AEDB reports that 18 bankable feasibility studies have been completed by the IPPs and these are now at various stages in the approval process. Another 35 IPPs, which hold letters of interest (LOIs) from AEDB are developing wind power projects.

Currently the first 6 MW of the Zorlu wind project is operational, and construction to complete a further 56.4 MW is proceeding. A 50-MW project from FFC Energy (New York) has achieved financial closure, and construction has started. The National Electrical Power Regulatory Authority (Nepra) has set tariffs for five projects, and a further eight IPPs have filed tariff petitions and generation license applications to Nepra after signing EPC contracts.

It appears that international turbine manufacturers have entered Pakistan's wind power sector following the commissioning of the first 6-MW project, after initially taking a "wait and see" stance.

Companies such as General Electric Company (NYSE:GE) (Fairfield, Connecticut); Nordex SE (Hamburg, Germany); Siemens AG (NYSE:SI) (Munich, Germany), Xinjiang Goldwind Science & Technology Company Limited (HKG:2208) (Hong Kong) and SUNEC (Nanjing, China) are now reported by AEDB to be offering very short delivery times accompanied by complete turnkey engineering procurement and construction contracts. Local manufacturing has also been encouraged, and Descon (Lahore, Pakistan) is producing wind turbine towers. Heavy Industries Taxila (Taxila, Pakistan) is in negotiations with leading wind companies to assemble turbines.

Wind power projects are cheaper in terms of unit price compared to power from rental power plants in which time and money have been invested in the past. Although wind will not replace hydropower projects, which generate clean, cheap energy and control water supply, the new projects will assist greatly in filling the country's power gap, although the current crop of proposals will not really add critical mass to the system until 2015.

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