Pakistan has great potential for wind energy generation. The Government of Pakistan is promoting the development of wind power projects, particularly in the coastal belt of Sindh province. Several wind power projects totaling around 50 MW each are being developed in the Gharo-Keti Bandar wind corridor, which has been identified as one of the most promising areas for wind energy due to average annual wind speeds over 7 m/s. The government is providing guarantees for power purchase from wind projects and guarantees against variability of wind speeds in the region.

1. WIND ENERGY POWER PROJECT
DEVELOPMENT in
PAKISTAN
Sector Information Memorandum

2. INDUSTRY ANALYSIS
Pakistan has a great potential of Renewable Energy (RE). Among all
sources of RE, wind is widely and abundantly available in Pakistan which can be
utilized for generation of power. Government of Pakistan (GoP) is taking keen
interest to harness wind energy potential and has taken strong measures to
initiate wind power projects in the country. GoP is focusing in the south, coastal
belt, for the development of wind energy in Pakistan. The foremost focus of GoP
is on Gharo - Keti Bandar wind corridor, where various projects each of 50 MW
capacity are in the different stages of development.
In the context of wind based power, GOP has guaranteed to
purchase all generated power.
Pakistan Meteorological Department has conducted a detailed Wind
Power Potential Survey of Coastal Areas of Pakistan with the help of
National Renewable Energy Laboratory (NREL) USA. This study has
identified potential areas where economically feasible wind farms can be
established. Acknowledging the importance of Renewable Energy Technologies
for power generation, the Government of Pakistan created Alternative Energy
Development Board (AEDB) in May 2003 to act as the national body on the
subject of Renewable Energy. The main goal is to introduce
Alternative/Renewable Energy at an accelerated rate to achieve 10 percent share
of RE in the energy mix of the country. AEDB has earmarked a potential wind
power generation area that cover 9700 sq. km in Sindh, with suitable
average annual wind speed of 7 m/s at 30 meters. The gross wind power
potential of this area is 43,000 MW.

3. SECTOR FEATURES
Wind data analysis by AEDB of the area wind farms suggest that the
region is high potential area with the annual average wind speed more than
7.3m/s at 80m (above ground level). Government of Pakistan is giving the
guarantee of variability of wind speeds (wind risk) in this region. AEDB has
developed benchmark wind speed table for the region and GoP is taking
guarantee of variability of wind speed on this benchmark table. This, wind risk,
guarantee by GoP will be critical in securing smooth repayments of the debt
amount to the lending agencies during the operation of the project.
PROPOSED AREA
Wind data analysis and surveys of this region suggest that Gharo - Keti
Bandar wind corridor is one of the most promising areas where wind power
projects can be viably installed.
Figure 1: Outline of Jhimpir Wind Farms Area

4. The Gharo-Keti Bandar corridor can be divided into two distinct areas:
Gharo Area with its “intra-tidal” and Jhimpir Area with its “inshore” wind farm
construction. In Jhimpir is terrain of the area is flat with small change in altitude.
The proposed site lies under roughness class 1.5. The ground is hard and rocky;
the subsurface soil also includes clay and silt. In Gharo, the land is marshy and a
tidal study needs to be done to know the tide patterns before installation can be
achieved.
The whole corridor is exposed to very strong South Westerly winds, wind
data analysis of the area suggest that, 80% wind is blowing from south west
direction. The site is easily accessible through metallic roads. The elevation of
the sites ranges from sea-level to an elevation of 150m above sea level ( Jhimpir
sites are at an elevation whereas all of Gharo-keti bandar sites are at sea level) .
Following are the few other facts of the site:
• Climatic conditions of the site are quite moderate. Atmospheric
temperature remains between 25 – 43 °C with an annual average of 26°C.
Precipitation is scarce.
• Sustained Good winds are present all around the year with high season
being from March to October.
• The project area is easily accessible through metallic road which can be
used to transport the WTGs.
• Commissioning of wind power projects in Jhimpir area has already begun.
Zorlu wind power plant has five turbines up. FFC’s farm has received the
regulatory approvals (Tariff, EPA, IEE etc.). Various other national and
international companies are negotiating EPC contracts for setting up of
wind power projects. Due to these technical activities in the region, the
technical knowhow and infrastructure capability is becoming available in
the area.

5. SECTOR SALIENTS
As per AEDB’s requirement feasibility Study for a wind farm is divided into
following five sub-studies:
• Wind Risk Coverage
AEDB has developed benchmark wind speed table for Jhimpir region and
GoP is taking guarantee of variability of wind speed on this benchmark
table. Government of Pakistan is giving the guarantee of variability of wind
speeds (wind risk) in this region.
• Guaranteed Power Off-take
Evacuation of power generated through renewable energy sources/ wind is
obligatory for the government agencies (RE Policy 2006). National grid is
available within the area. Grids of 132 / 11 KVA are available in the close
vicinity of the project site; Gharo, Jhimpir and Jherk are the main grid
stations which are close to the project site and can off take the generated
power the area Wind IPPs.
Rate of Return
Government has allowed 15% ROE to all the IPPs in the thermal sector.
But wind this has been increased to 17%. NEPRA has already allotted tariff
based on 17 % ROE in wind power.
• Protection against Political Risk
Policy guarantees protection to investments against nationalization,
expropriations or any changes in the law that may affect them adversely.
ADB’s Guarantee
Asian Development Bank has already offered US$ 450 million for
providing a counter guarantee to the financiers of the Wind projects. This
will provide further safety to all the financiers of this sector. This amount
will almost provide guarantee for first five projects in wind.
• Wheeling Provisions for two party deals

6. This policy provision will become a great step forward in resolving the
circular debt problem as electricity could be wheeled and used by some
industrial outfit directly.
• Sharing of Carbon Credits on top of Tariff
This enhances the Rate of return further in Wind Power as in these
projects quite a number of Carbon Credits will be generated thus
generating quite substantial income from the sale of those credits. NEPRA
has already ruled in favour of sharing of this revenue by the power
producer.
• No Import duties on Equipment
• No Income Tax/ Withholding Tax
• Convertibility of Pak Rupees into US $