Arif AlauddinArif AlauddinAlternate Energy Development BoardAlternate Energy Development Board

PakistanPakistanJuly 24, 2009July 24, 2009

POLICY DEVELOPMENTS & POLICY DEVELOPMENTS & UPDATE FOR RENEWABLE UPDATE FOR RENEWABLE

ENERGY IN PAKISTANENERGY IN PAKISTAN

Managing the Energy Crisis in Pakistan

` Electricity Delivered (75% Of Generation

Capacity 2008)

Percentage Sanctioned Load

Agriculture 11.54% 21%

Domestic 46.92% 31%

Street Light 0.57% 2%

Commercial 6.09% 8%

Industrial 28.74% 31%

Traction, Bulk & Other Govt.

6.14% 7%

Total 100% 100%

Alternative Energy Alternative Energy Development Board (AEDB)Development Board (AEDB)

• AEDB created in 2003 moved to Power Ministry 2007AEDB created in 2003 moved to Power Ministry 2007

• Earlier decentralized / scattered efforts of the MoP, S&T, Earlier decentralized / scattered efforts of the MoP, S&T, WAPDA had not produced the desired resultsWAPDA had not produced the desired results

• Mandated by the Government of Pakistan to:-Mandated by the Government of Pakistan to:-

• Implement policies, programs and projects through private Implement policies, programs and projects through private sector in the field of Renewable Energysector in the field of Renewable Energy

• Assist and facilitate development and generation of Assist and facilitate development and generation of Renewable Energy to achieve sustainable economic Renewable Energy to achieve sustainable economic growthgrowth

• Facilitate transfer of technology and develop indigenous Facilitate transfer of technology and develop indigenous manufacturing base for RE Technologymanufacturing base for RE Technology

• Facilitate power generation through alternative or Facilitate power generation through alternative or renewable energy resourcesrenewable energy resources

Wind Resource in PakistanWind Resource in Pakistan

• Pakistan has a 1,046 Km Pakistan has a 1,046 Km coastline in the Southcoastline in the South

• Average wind speed more Average wind speed more than 7 m/s in Gharo Wind than 7 m/s in Gharo Wind Corridor at 60mCorridor at 60m

• Estimated wind potential Estimated wind potential more than 350,000 MWmore than 350,000 MW

• 50,000 MW potential only in 50,000 MW potential only in Gharo~Keti Bandar corridorGharo~Keti Bandar corridor

• Other sites in Balochistan, Other sites in Balochistan, Punjab and Northern Areas Punjab and Northern Areas being identifiedbeing identified

Gharo W

ind

Gharo W

ind

Corrid

or

Corrid

or

1st Phase Wind Power Program in Sindh Province

The National Alternate Energy The National Alternate Energy Policy 2006Policy 2006

• Prepared by AEDB with consultation of Prepared by AEDB with consultation of all provinces and stake holders.all provinces and stake holders.

• Provides attractive incentives for Private Provides attractive incentives for Private Sector Investment in the Alternate & RE Sector Investment in the Alternate & RE Technologies.Technologies.

9,700 MW

MICRO SITING OF WIND FARMS IN JHIMPIR BY AEDB

UNIQUE FEATURES OF POLICY

Wind Risk / Hydro Risk – Responsibility of the Government

Wind data measured, validated by RisWind data measured, validated by RisØØe National e National Laboratory of DenmarkLaboratory of Denmark

Attractive cost of land for wind energy projects Attractive cost of land for wind energy projects (€5 per acre per year).(€5 per acre per year).

Guaranteed Electricity purchase, Attractive Tariff. 9.5 Cents upfront, or Return on

Equity 15% to 18% Grid provision is the responsibility of the purchaser

(NTDC) Protection against political risk / Provision of

Counter Guarantee No Import Duties on Equipment

UNIQUE FEATURES OF POLICY

No Import Duties No Sales Tax No Income or Withholding tax Accelerated Deprecation Repatriation of Equity and Dividends freely allowed, Free conversion of Pak Rupees to USD Permission to issue corporate registered bonds Provisions of Net Metering; Banking and Wheeling

of Electricity Grid Spill Over accepted Carbon Credits to the Project proponent

Vast RE potential in Pakistan Wind:

350,000 MW. 50,000 in Gharo Area.

Hydro: 50,000 MW

Solar: 1.2 Mill MW

Waste to Energy: Municipal Waste 5000 MW Agricultural and other – Not yet determined

GeoThermal 2000 MW (initial survey)

Off-Grid 7000 MW (programs developed)

RE TargetsRE Targets

• Development of wind and solar energy to meet at least 5% of Development of wind and solar energy to meet at least 5% of total installed capacity through RE resources by 2030. total installed capacity through RE resources by 2030.

• Development of solar products like solar lights, solar fans, solar Development of solar products like solar lights, solar fans, solar cooker, solar geyser etc. through private sectorcooker, solar geyser etc. through private sector

• Accelerated Deployment of stand alone RE technologies (7000 Accelerated Deployment of stand alone RE technologies (7000 MW by 2017)MW by 2017)

• 5% replacement of annual Diesel consumption with Biodiesel 5% replacement of annual Diesel consumption with Biodiesel by year 2015by year 2015

• 10% replacement of annual Diesel consumption with Biodiesel 10% replacement of annual Diesel consumption with Biodiesel by year 2025by year 2025

• 8400 villages to be electrified through RE by 20208400 villages to be electrified through RE by 2020

CURRENT STATUS OF WIND IPPsCURRENT STATUS OF WIND IPPs

First Wind Farm Inaugurated April 2009

24 Projects in advance stage of Preparation

Feasibility Studies: Completed by Fifteen (15) IPPs for 750 MW.

Generation License: Issued to six (8) IPPs 400 MW.

Tariff : Awarded to (5) IPPs .

Standard EPA and IA: Documents developed & Standardized – but open to negotiation.

ROAD MAP

1. Short Term *

Wind / Hydro Risk coverage. Attractive Power Purchase Tariff.

2. Medium term – Consolidation Phase ( 2010 – 2014)

Currently under formulation Feed-In Tariff based Market Mechanism

3. Long Term – Maturity Phase (2014 onwards)

Renewables to compete on a level-playing field with traditional resources

* Short Term being extended till December 2009

NEW AREAS COVERED IN THE NEW AREAS COVERED IN THE 2010 POLICY2010 POLICY

Small Hydro

Geo-thermal

Waste to Energy

Energy Plantations for Biofuels

BioGas, Solar thermal and other non electric technologies

Accelerated Deployment of RE technologies for Poverty Reduction – eg: Clean Drinking Water, Agriculture Water Pumping, Income Generation, Education and Demand Reduction etc)