This is a landmark in wind power sector of Pakistan achieved by the FFC Energy Limited under the facilitation of the AEDB, based on signing of Energy Purchase Agreement on 5th April 2011 between M/s FFCEL and Central Power Purchasing Agency (CPPA) and Implementation Agreement with AEDB in February 2011.
According to the AEDB, several other wind turbines projects are in pipeline and the year 2011 would see financial close of another 4-6 projects in wind sector alone. With this landmark project, Pakistan will enter its name amongst the nations utilising wind energy for electricity generation at commercial scale. The most significant and unique feature of the Pakistan’s wind energy sector is that it would be the fastest realisation of wind energy projects by any country in the world without the involvement of state funding, subsidies or public projects. Pakistan would become the first country, where the wind power projects are being initiated directly by the private sector without public money or public projects.
Pakistan now offers an investment-friendly and lucrative wind energy market for the investors and equipment suppliers. Only a few years ago, the wind energy sector of Pakistan had no attraction to the investors and suppliers. Now more than six (06) EPC contractors are ready to provide their services in Pakistan. The financing of projects has also become available with IFC, ADB, OPIC and other commercial banks and financing institutions ready to finance wind power projects.
The ARE based projects, especially wind projects would play an important role in the future energy mix of Pakistan. With the issues with the declining natural gas reservoirs and rising prices of imported fuel oil, very less investment in conventional power project
is anticipated in near future. Moreover, the coal and hydel power project also have a long gestation period. Wind energy projects are a viable option for the near future with the benefit of indigenous resource and cheap electricity as compared to conventional fossil fuel projects. ARE projects are expected to create significant number of job opportunities and possibilities of local manufacturing.