Renewable Energy to Tackle Pakistan's Electricity Crisis
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
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
"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.
Jan 18, 2009
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...
Feb 23, 2012
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...
May 30, 2012
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-...
Jul 17, 2012
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...
Sep 12, 2012
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...
Dec 19, 2012
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...
Dec 19, 2012
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
Jan 2, 2013
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
Jan 10, 2013
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...
Mar 13, 2013
Riaz Haq
Here's a PakistanToday report on new wind energy investment in Pakistan:
The Board of Directors of the Overseas Private Investment Corporation (OPIC) has approved $ 95 million in financing for a wind power project poised to deliver much-needed electricity to Pakistan. The credit facility will help build a 50-megawatt wind power plant in southeastern Pakistan’s Ghoro-Keti Bandar Wind Corridor designed to generate 133 gigawatt hours of emission-free electricity annually.
Using General Electric Wind turbines, the Sapphire Wind Power plant supports a mutual U.S.-Pakistan goal to diversify Pakistan’s power generation beyond reliance on high-priced fuel oil by tapping Pakistan’s vast renewable energy potential, said OPIC, which is the U.S. Government’s development finance institution.
“The provision of clean and reliable electricity is an essential building block of any economy,” said OPIC President and CEO Elizabeth L. Littlefield.
A recent study funded by the National Renewable Energy Laboratory and the U.S. Agency for International Development estimates that Pakistan possesses 132,000 MW of potential installed wind capacity – virtually equal to the world’s entire installed wind capacity for 2010.
http://www.pakistantoday.com.pk/2013/03/23/news/profit/opic-approve...
Mar 22, 2013
Riaz Haq
Here's a reNews report on Nordex windmills in Pakistan:
Nordex has secured a firm supply order for the 50MW FWEL 2 wind farm in Sindh, around 80km from Karachi in Pakistan.
The scheme will feature 20 N100/2500 hot climate turbines and operation is scheduled for 2014.
Nordex is building the wind farm on a turnkey basis alongside Descon Engineering (Pakistan). The project is the first of a possible 250MW tie-up with the owners.
The Fauji Foundation holds a 55% stake while Cap Asia and the Tapal Group own the remaining 25% and 20%, respectively.
Nordex manager Lars Bondo Krogsgaard said: “I am pleased that with this project the first of the 250MW of contracts in Pakistan will commence. It shows us that the Pakistani market holds tremendous potential that can be realised by Nordex.”
The manufacturer built its first wind farm in Pakistan last year, again for Fauji.
http://renews.biz/41783/nordex-on-a-roll-in-pakistan/
May 16, 2013
Riaz Haq
Here's a report of another Nordex wind turbines deal in Pakistan:
German turbine manufacturer Nordex has gained a firm 50MW follow-up order in Pakistan from the Fauji Foundation and the Malay infrastructure fund Cap Asia.
The order is for 20 of the company’s N100/2500 turbines to be installed at the FWEL I project in the province of Sindh in 2014.
The company had already delivered turbines for two other wind farms in the same province – the FFCEL and FWEL II projects.
Nordex says the close proximity of all three projects – at about 80km from Karachi – will enable it to leverage synergies such as centralising the provision of services under the warranty, and operation and maintenance contracts.
http://www.rechargenews.com/wind/asia_australia/article1335979.ece
Aug 30, 2013
Riaz Haq
Here's Hydroworld on French help for Pakistani dams:
Financing from the French Development Agency will allow for the construction of a pair of hydroelectric projects that will add a combined 785 MW of power to Pakistan's grid.
The US$141.9 million credit facility agreement will help develop the 740-MW Munda and 35-MW Harpo hydropower plants, located in the Khyber Pakhtunkhwa and Gilgit Baltistan regions, respectively.
Pakistan's Ministry of Water and Power assigned the Munda Dam project to Pakistan's Water and Power Development Authority in 2010 for detailed engineering design and construction. It was decided in 2007 that Munda would be a multi-purpose project, to supply water for irrigation, to mitigate flooding, and to generate power.
The European Union also sought pre-qualification in April 2012 to perform a climate change adaptation study and an impact assessment study of the project, which will be built on Pakistan's Swat River.
Meanwhile, HydroWorld.com reported in January that the German Ministry for Economic Cooperation and Development had agreed to provide Pakistan a $27.3 million loan for the Harpo project via the KfW Development Bank.
Pakistan's Water and Power Development Authority (WAPDA) began sought expressions of interest for engineering design and tender preparation for the plant in May 2009.
Harpo will be located on the Harpo Lungma River, which is a tributary of the Indus River.
http://www.hydroworld.com/articles/2014/04/france-helps-fund-pakist...
Apr 2, 2014
Riaz Haq
From Hydroworld:
The U.S. Agency for International Development (USAID) seeks bids to provide financial advisory services to the government of Pakistan for Pakistan's proposed 4,500-MW Diamer Bhasha hydroelectric project on the Indus River. Bids are due October 27.
USAID awarded a contract in September to MWH Global to perform an environmental and social impact assessment of Diamer Bhasha. It was reported last year that the World Bank and Asian Development Bank agreed to help finance construction of Diamer Bhasha (also spelled Basha).
Pakistan recruited firms in 2009 for design, construction supervision, and contract administration of Diamer Bhasha, which includes a 272-meter-tall roller-compacted-concrete dam, two diversion tunnels, two underground powerhouses of 2,250 MW each, a permanent access bridge, and hydro-mechanical and steel structural equipment.
USAID/Pakistan now seeks bids for financial advisory services in regard to financing Diamer Bhasha. Work is to include development of a financing strategy for the project, assistance in financing decision making and financial closure, and development of a computer-based financial model for the project. The work is expected to require one year at a cost of US$2.5 million to US$2.9 million.
http://www.hydroworld.com/articles/2014/10/u-s-seeks-financial-advi...
Oct 8, 2014
Riaz Haq
General Electric will supply 33 1.5MW turbines with 82.5-meter rotors for the 50MW Sapphire project in Pakistan, its first wind equipment deal in the Asian nation.
GE will also provide 10 years of operations and maintenance services as part of the contract.
The vendor notes that although this is GE’s first wind energy project with developer HydroChina and Sapphire, that Sapphire has selected the company’s power generation equipment including engines and gas turbines for more than 18 years in the region.
“We chose GE wind turbines because they are a well-proven technology and widely installed around the world, especially in tropical climates like that of Pakistan,” says Nadeem Abdullah, owner of the Sapphire Wind Power farm. “GE has been instrumental in supporting Sapphire to achieve financial closure with OPIC.”
OPIC is the US government’s development finance Institution, which provides capital for infrastructure projects that align with US foreign policy goals. OPIC’s funding will assist in the development of the wind farm.
The US Agency for International Development and the National Renewable Energy Laboratory estimate Pakistan has more than 132GW of wind energy capacity. The country’s electricity demand is increasing 4% per year.
“Pakistan has huge potential for wind energy, and is a great example of a country where wind can be competitive with other generation technologies,” says Anne McEntee, chief executive of GE’s renewable energy business.
http://www.rechargenews.com/wind/1381569/GE-wins-Pakistan-turbine-deal
Oct 27, 2014
Riaz Haq
Global Renewable Energy Mapping Program Gets Underway in Pakistan with First Solar Measurement Station
November 12, 2014
Multi-year mean (2000-2012) of daily Global Horizontal Irradiance (GHI) for Pakistan in kWh/m2 [Note: preliminary, unvalidated results]
Pakistan has tremendous potential for harnessing wind, solar, biomass and other renewable energy resources to help reduce power cuts and improve access to modern energy services. But the country lacks the high quality resource data at a national scale that is needed to take full advantage of these sources of clean energy.
For the past year, the World Bank and Pakistan’s Alternative Energy Development Board have been working together to map renewable energy resources across the entire country. The project, supported by the World Bank’s Energy Sector Management Assistance Program (ESMAP), will measure Pakistan’s potential for wind, solar and biomass energy by using ground-based data collection, GIS analysis, and geospatial planning. It is part of a broader Renewable Energy Resource Mapping initiative covering 12 countries.
Concluding the first phase of the project, initial maps of solar and wind potential for Pakistan were presented to the government and other stakeholders at an October 15 workshop in Islamabad. The result of months of computer-intensive modeling, these maps represent a significant improvement over previous efforts due to computational advances over the last decade. The maps are based on satellite data and global atmospheric models covering a 10 year period, and can be used to estimate the likely solar or wind potential at any point in the country.
However, to get to the level of confidence required by commercial developers, these modeling results must be compared against actual solar and wind measurements taken from ground-based stations.
A major part of the ESMAP renewable energy mapping initiative is to collect ground-based measurement data for a period of up to two years. This data is then used to improve the models, leading to the production of solar and wind atlases with a margin of error of as low as 5 percent. These in turn can be used by governments to set tariffs and guide the strategic development of renewable energy, and by commercial developers to carry out feasibility studies, leading to development of solar and wind power plants.
Tier 1 solar measuring station and associated wind mast at QA Solar Park in Bahawalpur, Pakistan
Pakistan is the first of the 12 country-level activities to reach the milestone of commissioning a measuring station. A high precision solar measuring station was inaugurated at the site of the Quaid-e-Azam Solar Park, near Bahawalpur in Punjab Province on October 18, 2014. This park is home to the first of many solar farms that are being planned in Pakistan, with 100 megawatts of capacity currently being constructed and due to begin generating electricity in early 2015.
By the end of the project, nine solar stations will be installed in Pakistan, of which two (in Bahawalpur and Islamabad) will be ‘high precision’ stations. The other seven standard precision stations are also very accurate, but are more suitable for remote locations, requiring only weekly cleaning and getting their small power requirement from a solar panel. All stations take multiple readings, including solar irradiance, temperature, air pressure, and wind speed. The data is transmitted daily using a modem, with 10 minute average values available from each sensor. At the time of writing this article, a total of four sites have been commissioned in Pakistan, including the one at Bahawalpur.
Over the next few months, the wind measurement campaign will also get underway, with around 15 sites planned across Pakistan. Wind measuring sites involve installation of a lattice tower up to 80m high, with anemometers installed at various heights to take highly accurate wind speed readings.
There is very strong demand from commercial developers and government stakeholders for access to the data that will be generated under the Pakistan project. The World Bank project team is working to design an open data solution that will allow the data to be accessed on a cost-free basis in near real-time.
The $22.5 million, five-year ESMAP Renewable Energy Resource Mapping program covers wind, solar, small hydro and biomass mapping, with each project designed according to specific country needs and the resources available. Besides Pakistan, work is currently underway in Ethiopia, Indonesia, Lesotho, Madagascar, Malawi, Maldives, Nepal, Papua New Guinea, Tanzania, Vietnam, and Zambia.
http://www.worldbank.org/en/news/feature/2014/11/12/global-wbg-rene...
Nov 13, 2014
Riaz Haq
IT IS a thrill trekking beside the upper Marsyangdi river in northern Nepal. On view are spectacular waterfalls and cliffs, snowy Himalayan peaks, exotic birds and butterflies. But just where tourists and villagers delight in nature, hydropower engineers and economists have long been frustrated; in such torrents they see an opportunity that for too long has been allowed to drain away.
Himalayan rivers, fed by glacial meltwater and monsoon rain, offer an immense resource. They could spin turbines to light up swathes of energy-starved South Asia. Exports of electricity and power for Nepal’s own homes and factories could invigorate the dirt-poor economy. National income per person in Nepal was just $692 last year, below half the level for South Asia as a whole.
Walk uphill for a few hours with staff from GMR, an Indian firm that builds and runs hydropower stations, and the river’s potential becomes clear. An engineer points to grey gneiss and impossibly steep cliffs, describing plans for an 11.2km (7-mile) tunnel, 6 metres wide, to be blasted through the mountain. The river will flow through it, before tumbling 627 metres down a steel-lined pipe. The resulting jet—210 cubic metres of water each second—will run turbines that at their peak will generate 600MW of electricity.
The project would take five years and cost $1.2 billion. It could run for over a century—and produce nearly as much as all Nepal’s installed hydropower. Trek on and more hydro plants, micro to mighty, appear on the Marsyangdi. Downstream, China’s Sinohydro is building a 50MW plant; blasting its own 5km-long tunnel to channel water to drive it. Nearby is a new German-built one. Upstream, rival Indian firms plan more. They expect to share a transmission line to ill-lit cities in India.
GMR officials in Delhi are most excited by another river, the Upper Karnali in west Nepal, which is due to get a 900MW plant. In September the firm and Nepal’s government agreed to build it for $1.4 billion, the biggest private investment Nepal has seen.
Relations between India and Nepal are improving. Narendra Modi helped in August as the first Indian prime minister in 17 years to bother with a bilateral visit. Urged by him, the countries also agreed in September to regulate power-trade over the border, which is crucial if commercial and other lenders are to fund a hydropower boom. Mr Modi was back in Kathmandu for a summit of the South Asian Association for Regional Co-operation, on November 26th and 27th. Governments think the normally rudderless body could find a purpose in energy integration—though the talks were poisoned by poor relations between Pakistan and India. Another big Indian hydro firm agreed with Nepal’s government, on November 25th, to build a 900MW hydro scheme, in east Nepal, known as Arun 3. Research done for Britain’s Department for International Development suggests four big hydro projects could earn Nepal a total of $17 billion in the next 30 years—not bad considering its GDP last year was a mere $19 billion.
All Nepal’s rivers, if tapped, could feasibly produce about 40GW of clean energy—a sixth of India’s total installed capacity today. Add the rivers of Pakistan, Bhutan and north India (see map) and the total trebles. Bhutan has made progress: 3GW of hydro plants are to be built to produce electricity exports. The three already generating produce 1GW out of a total of 1.5GW from hydro. These rely on Indian loans, expertise and labour.
Why a Himalayan cross-border hydropower rush now? In Nepal projects were once scuppered by local politics, a ten-year civil war, suspicion of India and a lack of regulation that put off creditors. Slowly, such problems are being tackled. The war ended in 2006. It helps, too, that the terms of the projects look generous to the host. For Upper Karnali, GMR will set aside 12% of electricity production, free, for Nepali consumers. It will also give Nepal a 27% stake in the venture. After 25 years of operation the plant will be handed to Nepal.
A second reason, says Raghuveer Sharma of the International Finance Corporation (part of the World Bank), was radical change that opened India’s domestic power market a decade ago. Big private firms now generate and trade electricity there and look abroad for projects. India’s government also presses for energy connections over borders, partly for the sake of diplomacy. There has even been talk of exporting 1GW to Lahore, in Pakistan—but fraught relations between the two countries make that a distant dream.
An official in India’s power ministry says South Asia will have to triple its energy production over the next 20 years. Integrating power grids and letting firms trade electricity internationally would be a big help. It would expand market opportunities and allow more varied use of energy sources to help meet differing peak demand. Nepal could export to India in summer, for example, to run fans and air conditioners. India would export energy back uphill in winter when Nepali rivers dry and turbines stop spinning.
Governments that learn to handle energy investments by the billion might manage to attract other industries, too. Nepal’s abundant limestone, for example, would tempt cement producers once power supplies are sufficient. In the mountains, it is not only treks that are rewarding.
http://www.economist.com/news/asia/21635071-bad-politics-should-no-...
Dec 1, 2014
Riaz Haq
Vestas has signed two memorandum of understandings (MOUs) with the Sindh and Punjab regional governments to develop up to 1.3GW of wind projects.
The first MOU will see Vestas assist the Sindh government in initially developing 100MW of projects, with a potential to expand up to 300MW.
Vestas vice president of sales in Asia Pacific, Gerard Carew, said the MoU will help the country overcome its "energy crisis", adding the Sindh province had excellent wind resources.
The Danish embassy in Pakistan announced the second MOU with the Punjabi government. It follows an analysis by Vestas, which found potential for between 800MW and 1GW across four possible wind sites.
According to Windpower Intelligence, the research and data division of Windpower Monthly, Pakistan has just over 100MW of wind capacity installed. The country installed no new capacity in 2014.
All of Pakistan's current online capacity can be found in the Sindh province, including the 50.4MW Nooriabad II project. The site is powered by 28 Vestas V90-1.8MW turbines.
Pakistan does, however, have a healthy pipeline and in October US turbine manufacturer GE secured its first contract there for a 49.5MW project.
http://www.windpowermonthly.com/article/1334790/vestas-signs-two-mo...
Feb 20, 2015
Riaz Haq
Over the past six years Buksh Energy (Pvt) Ltd has been committed to maximising energy efficiency and ensuring the optimum utilisation of resources in its attempts to alleviate Pakistan's severe energy crisis. Global Wind Power (GWP) and Buksh Energy have joined hands to provide holistic turnkey solutions for managing and commissioning wind energy projects in Pakistan. The partnership aims at to facilitate the existing wind energy projects with the selection of an experienced EPC and project developer. This is the first ever collaboration of BEPL and GWP for supporting the wind energy sector of the country and will provide a strategic balance of services, utilising the two leading companies' respective strengths and resources to leverage the energy sector of Pakistan. Global Wind Power (GWP), Denmark, is a leading international project developer specialising in developing, implementing, selling and managing wind turbine projects for professional investments. The Ambassador of Denmark to Pakistan, Jesper Moller Sorensen said: "As part of our Danida Business facility, we invited Buksh Energy to Denmark in October to meet prospective partners in the energy sector. I am really excited that Buksh Energy and Global Wind Power found each other. It is exactly innovative partnerships like this that will help Pakistan to meet its energy demand in the future. Denmark is a global world leader in wind solutions, and that potential in Pakistan is enormous." GWP's senior business advisor Nicky Mads Larsen, is also very positive about the company's future with BEPL. He said, "The partnership between Buksh Energy and GWP aims at to combine the best of local and international know-how and experience for the benefit of the local industry, developers and investors. Although we have been in traditional project joint ventures before, our local partner agreement is a new and interesting form of collaboration for which we are very excited, and which allows us to explore markets that would otherwise be difficult to enter." Fiza Farhan, Director of Buksh Energy also shared her enthusiasm for the project, said, "Buksh Energy is extremely excited to bring turnkey wind energy solutions to Pakistan with this venture. I believe that our unique partnership will open new avenues for the renewable energy sector and encourage the development of the wind energy sector in the country." The CEO of BEPL, Asim Buksh said, "It is with great pride that we announce this partnership with GWP as our trusted project development and EPC partner. The partnership aims to fully facilitate the investors in setting up wind farms with a team of experts possessing the finest EPC and project management skill set. This move fits in with our vision 2020 to ensure that we are responsible for five percent of Pakistan's energy needs to be met by renewables."-
http://www.brecorder.com/fuel-a-energy/193/1153777/
Feb 21, 2015
Riaz Haq
The private sector arm of the French Development Agency will infuse USD 20 million (EUR 18.8m) into Gul Ahmed Wind Power Ltd, which is developing a 50-MW wind project in Pakistan’s Sindh province.
Finance institution Proparco’s investment in this independent power producer will support the construction and operation of the plant that will be located to the northeast of Karachi. The move is part of attempts to back renewable power generation and drive economic development across the country, according to a Tuesday press release.
“This project will contribute not only to reducing pressure on the country’s power grid, but also to encouraging the development of strong, reliable and clean energy in the region,” said Claude Periou, CEO of Proparco. He went on to say that this is the entity’s third investment in Pakistan’s energy sector.
The planned wind farm will help the country reduce the use of polluting and expensive fossil fuels and will create 50 long-term job positions.
http://renewables.seenews.com/news/proparco-to-back-development-of-...
Mar 14, 2015
Riaz Haq
The China Three Gorges Corporation has official wrapped up construction work on its first wind farm in Pakistan, as part of vigorous efforts by the state-owned renewable energy giant to expand into the South Asian market.
Total investment for the Three Gorges wind farm in Pakistan was $130 million, for the creation of total installed capacity of 49.5 MW. The project has taken just over two years to complete, with work commencing at the end of January in 2013 and initial commercial operation beginning on November 25, 2014.
Three Gorges Corporation has touted the project as the first wind farm that a Chinese company has funded and built in Pakistan, as well as the only wind farm in Pakistan to be completed ahead of schedule.
At a completion ceremony held on March 11, China Three Gorges chairman Lu Chun said that Pakistan was a key strategic investment market for the company due to its close strategic ties with China, as well as its abundance of clean energy resources and strong market demand.
In order to foster its expansion into the Pakistani market, China Three Gorges has established China Three Gorges South Asia Investment Limited (CSAIL) an investment holding company in Pakistan that aspires to become the country’s largest renewable energy company.
The company has over 2 GW of solar, wind, and hydropower projects in the pipeline, with key projects that have already entered the construction phase including two hydropower plants with expected capacities of 720 MW and 1.1 GW respectively.
CSAIL has already obtained the support of some heavyweight backers, including the World Bank’s International Finance Corporation, which has acquired a 15% equity stake in the company.
China’s $40 billion Silk Road infrastructure fund, whose establishment was announced by Beijing in November of last year, has also expressed strong interest in either investing in or cooperating with CSAIL in the South Asian market.
http://cleantechnica.com/2015/03/18/china-three-gorges-builds-first...
Mar 18, 2015
Riaz Haq
The National Transmission and Despatch Company Limited (NTDCL) of Pakistan signed three agreements for the output of 129.5 MW of energy from Jhimpir wind farm.
The plan calls for Tapal Wind Energy to build a 30 MW facility, Master Wind Energy to install a 49.5 MW plant and Gul Ahmed Wind Power construct an additional 50 MW wind park.
The PPAs have received the green light from NTDCL authorities and all three wind power producers will close their financing till 31 March 2015. The farm will start production by the end 2016.
NTDC, incorporated in 1998 operates and maintains twelve 500 KV and twenty nine 220 KV Grid Stations, 5077 km of 500 KV transmission line and 7359 km of 220 KV transmission line in Pakistan.
The main functions of NTDCL are categorized as central power purchasing agency, system operator, transmission network operator, contract registrar and power exchange administrator for the energy portfolio of Pakistan.
As a Central Power Purchasing Agency (CPPA), the utility works on procurement of power from GENCOs, Hydel & IPPs on behalf of Distribution Companies (DISCOS) for delivery through 500 kV, 220 kV and 132kV Network.
Current projects undertaken by NTDCL include D. G Khan 500 kV sub -station and transmission line, New Okara 220 kV Sub-Station Transmission Line and Dispersal of Power from Jarwar IPP Jarwar – Sadiqabad 132 kV Double Circuit Transmission Line.
The Jhimpir Wind Power Plant is a wind farm located at Jhimpir in Thatta District of Sindh province in Pakistan, 120 kilometres North-East of Karachi.
The project has been developed by Zorlu Energy Pakistan at a total cost of $143 million.
Recently, Pakistan Meteorological Department has conducted a detailed Wind Power Potential Survey of Coastal Areas of Pakistan.
This study finds that Sindh coastal areas have greater wind power potential than Balochistan coastal areas. Potential areas cover 9700 sq.km in Sindh.
In Pakistan, first wind power generation plant of 50 MW was inaugurated in December 2012 and started full production in 2013. The wind power potential in Pakistan that has been identified in Sindh and Balochistan is more than 50,000 MW while Punjab has potential of producing almost 1,000 MW.
http://www.greentechlead.com/wind/ntdcl-of-pakistan-signs-3-deals-f...
Mar 21, 2015
Riaz Haq
Pakistan's Environmental Protection Agency announced this week that it has awarded a US$1.4 billion contract for development of the 720-MW Karot hydroelectric project on the Jhelum River in the Rawalpindi district of Pakistan, to a group of Pakistani and Chinese investors that includes China Three Gorges South Asia Investment Ltd. (CTGC).
Published information indicates 93% of the project’s funding is through CTGC and the remaining 7% from Pakistan-based Associated Technologies (Private) Ltd. The National Transmission and Dispatch Company Ltd. (NTDC) of Pakistan plan to complete the project by 2020.
Karot Power Co. (Private) Ltd. will operate the run-of-river hydroelectric power plant, which includes an underground powerhouse that will generate electricity from four 183-MW Francis turbine units. The powerhouse will be located in the province of Punjab and the Karot Dam, a concrete gravity dam, will be built on the Jhelum River.
Initially, Pakistan’s Water and Power Development Authority (WAPDA) planned the scheme, but the project was privatized and taken over by the Private Power Infrastructure Board (PPIB), which then subsequently granted operation responsibility to Karot Power Co. (Private) Ltd.
PPIB has authority to "handle" the operation of 12 hydroelectric power projects in Pakistan, according to the agency.
PPIB said the project is expected to generate 3,436 GWh annually and connect to the government-owned National Grid of Pakistan, which is operated by WAPDA. WAPDA has a 30-year Power Purchase Agreement with NTDC.
According to Pakistan’s 2002 Power Generation Policy, private sector-developed hydroelectric projects must be developed on the basis of Build-Own-Operate-Transfer. In this case, NTDC must transfer to the government of Pakistan, free of charge, the Karot hydroelectric project after operating it for 30 years.
Apr 21, 2015