PAKISTAN: Five firms allowed to set up wind power plants

RAWALPINDI, Feb 9: The National Electric Power Regulatory Authority (Nepra) has issued licences to five independent power producers (IPPs) for initiating wind power projects in the country.

Official sources told Dawn that eight IPPs had completed feasibility studies on wind power plants for generating 50KW each. Licences for the three IPPs, Zephyr Power Ltd, Beacon Energy Ltd and Zorlu Enerji Ltd, were under process.

The companies granted licences were: New Park Energy Ltd, Tenaga Generasi Ltd, Green Power Ltd, Win Power Ltd and Milergo Pakistan Ltd.

The Alternative Energy Development Board (AEDB) issued a Letter of Intent (LOI) to 93 national and international investors, of which 92 were meant for 50MW wind power projects each and one for a 5MW wind project.

The AEDB has so far identified 50,000 acres of government land in Sindh for the projects on the basis of a survey carried out by the Pakistan Meteorological Department (PMD). Sources say that 23,646 acres of land (19,807 acres in Gharo and 3,839 acres in Jhimpir) have been allocated to 15 investors. About 10,330 acres of land is being provisionally allocated to seven more wind investors.

A PMD study has identified a wind corridor starting from Ketibunder to Gharo extending up to Jamshoro and covering an area of 45,000 sq km. It points out that about 9,000 sq km areas can be used for wind power farms and generate about 11,000MW.

The study indicates that contrary to the general impression, Sindh’s coastal areas have a greater wind power potential than Balochistan’s coast.

Using the measured wind data, the annual gross energy production by an 18MW wind farm consisting of thirty 600kW turbines will be 45 million kWh. Taking into account the wind turbine availability, net losses and wake effects in the wind farm, the net annual energy production is estimated at 31 million kWh per year corresponding to a capacity factor of 28 per cent, the study says.

The total investment will be Rs850 million and payback period will be seven to eight years. The capital cost of wind power projects ranges from Rs40 to Rs50 million per MW. This gives a cost of wind energy generation in the range of Rs2.50 to 3.00 per kWh, taking into consideration the fiscal benefits extended by the government.

The potential for the use of alternative energy sources has never been fully explored in the country. Wind power generation provides an excellent opportunity to reduce dependence on imported fossil fuels and at the same time expand the power supply capacity to remote locations where grid expansion is impractical.

At present, oil accounts for approximately 45 per cent of the total commercial energy supply. The share of natural gas is 34 per cent, while that of hydel power remains roughly at 15 per cent.

By Amin Ahmad
http://www.dawn.com/2008/02/10/top11.htm

A list of all LoI holders in this sector can be found at http://www.energy.com.pk/LOI%20holders.htm