South Korea Announces Funding from Climate Change Project for Windfarms in Pakistan

---

Researched by Industrial Info Resources (Sugar Land, Texas)--As part of an initiative to invest in renewable power projects, South Korea will spend $2 million on an initial feasibility study for windfarm projects in Pakistan. The projects, which are planned for Jhumpir and Hawksbay in the Sindh province, will be financed by the Climate Change Partnership Project Fund. The windfarms will be set up by integrated utility company Korea Electric Power Corporation (NYSE:KEP) (KEPCO) (Seoul, South Korea) and will provide electricity to power-hungry villages and towns in neighboring areas. Pakistan is also seeking technical expertise from South Korea in the development of solar and coal-fired projects in the country.

According to Arif Alauddin, the chief executive officer of the Alternate Energy Development Board (AEDB) (Karachi, Pakistan), Pakistan is expected to finalize at least four wind power project agreements worth $500 million this fiscal year. The power plants, which will consist of four 50-megawatt (MW) units, are expected to be commissioned by the end of 2011. According to the National Renewable Energy Laboratory (Washington, D.C), Pakistan has a wind power potential of nearly 50,000 MW. However, a lack of infrastructure and funding has impeded development of the resource.

AEDB, which is now offering several incentives and benefits to wind power developers, has already completed land allocation for 18 independent wind power projects with capacities of 50 MW each. While the U.S. Agency for International Development (Washington, D.C) is extending assistance for construction of a 300-MW windfarm, Nordex SE (ETR:NDX1) (Norderstedt, Germany) has agreed to supply 50-MW wind turbines to FCC Energy Limited in March. AEDB is also undertaking a nationwide mapping of wind power potential and proposes to develop windfarms in northwest Khyber-Pakhtunkhwa and southwest Balochistan. The State Bank of Pakistan (Karachi) is extending loans to solar power project developers.

South Korea is focusing on funding renewable projects and climate change initiatives in Asia. Several eastern Asian countries are experiencing increased consumption of non-renewable resources, mainly because of economic growth and industrial development. Earlier, the South Korean consortium led by Hyundai Heavy Industries Company Limited (SEO:009540) (Ulsan, South Korea), signed a memorandum of understanding to build a 50-MW wind power project in Pakistan's Sindh province. The windfarm will consist of 30 units of 1.65 MW each. The wind turbines will be manufactured at Hyundai Heavy Industries' Gunsan facility. The wind power project is likely to begin operations in 2011.

Shaukat Ali Mukadam, Pakistan's Ambassador to South Korea, expressed confidence that with several South Korean companies expressing interest in investing in Pakistan, trade between the two countries will grow steadily. Ijaz A. Mumtaz, the acting president of the Lahore Chamber of Commerce and Industry, indicated that Pakistan can play a pivotal role as South Korea's export partner in textiles, raw hides, leather, fruits, cotton, medical equipment, fisheries and toys.

Pakistan, which is facing a daily power supply deficit of 4,500 MW to 5,000 MW, is seeking assistance and investments from international agencies and energy companies. Presently, nearly 65% of the country's power is generated from oil and gas. Hydroelectric and nuclear power sources contribute 30% and 5%, respectively. In the past 10 months, the country spent nearly $31.5 billion on imports, of which $8.3 billion was spent to procure oil for energy generation.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.