Alternate Energy Development Board (AEDB) has achieved a landmark success and Federal Minister for Water and Power Naveed Qamar performed the groundbreaking ceremony of first of twenty 50 MW wind power plants to be constructed by CTG Wind Farm Pakistan Limited with an investment of $130 million.
CTG Wind Farm Pakistan Limited already working on two other wind energy projects of 50 MW each, is seeking additional land for 450 MW and has already commitment with AEDB for setting up 1,000 MW in Sindh in the next 3-4 years, said the minister at the inaugural ceremony held at a local hotel. AEDB CEO Arif Alauddin, Three Gorges First Wind Farm CEO Wang Shenliang, Ambassador of the Peoples Republic of China Liu Jian (Yong) were also present on the occasion.
The minister said that finalisation of Wind Energy Policy with upfront tariff and documentation has started giving results and has attracted investment from China and other countries to follow. He said that Pakistan has a potential of 50,000 MW wind power and Chinese investment would help exploit it for national development. He said that Chinese company CTG would also make investment in Kohala Hydropower Project and other hydropower projects and hoped for it’s success.
He said after the Wind Power Policy government will soon announce New Coal Power Generation Policy with similar upfront tariff and documentation to attract investment in coal power plants. He mentioned that under Coal Power Policy generation will be allowed through imported coal and then through locally available coal. He thanked the Chinese investors for making investment in power sector and hoped that investors from other countries would also come forward and make investment in Pakistan’s power sector. The ambassador of the Peoples Republic of China speaking on the occasion termed this project as a step forward in enhancing economic cooperation between the two friendly countries. He congratulated AEDB and CTG Wind Farm Pakistan Limited for this landmark success.
Three Gorges First Wind Farm CEO speaking about its $130 million 50 MW wind power plant in Jhimpir Thatta, Sindh announced that CTG has plans to invest up to $15 billion for generating 10,000 MW power in the country during the next five years. Chinese company is making investment in Pakistan’s power sector from its own financing in wind power project and the 1,100 MW Kohala Hydropower project in the country. Wang said, “As the CTG expands its overseas investment, our first priority remains Pakistan, and we are interested to generate 10,000 MW hydel and wind energy in Pakistan.” He said the first project of 50 MW will be completed by late summer 2012. The firm is seeking additional land for a 450 MW project and has given its commitment to set up 1,000 MW in Sindh in the next 3-4 years. It will be making all the investment through its own resources.
CTG has shown interest to invest in four mega hydropower power projects of Bhasha, Bunji, Kohala and Karot, provided the government removes legal bottlenecks in the award of contracts. Pakistan had already signed memorandum of understanding with CTG for the construction of 7,100 MW Bunji Hydropower, while the contract for 1,100 MW Kohala Hydropower project was awarded to it this year.
Alauddin speaking on the occasion said that the groundbreaking of the third (or yet another) 50 MW Wind Power Plant in Pakistan is with the foreign investment of over $130 million, and promised that it would be online by late summer next year.
Although the push for feed in tariff for wind energy came from the AEDB chairman, Minister Naveed Qamar, National Electric Power Regulatory Authority’s (NEPRA) timely response resulted in what is being termed as probably one of the best feed in tariffs in the world. The Standard Implementation Agreement documents allow the investor to agree to and sign the IA in one sitting with the AEDB. It took another ZORLU Energy exactly one sitting to agree upon the IA, which is expected to be signed on January 3.
Private sector has shown renewed interest in establishing commercial scale RE projects. Zorlu from Turkey, Nordix and Azur from Germany, Lumen Energy From Dubai, Hartfort Energy and SS ID from USA, NBT from Norway, LIMAK, LIMA and Kenisis from Turkey and AEI from UK have teamed up with Pakistani companies to set up wind energy and solar power generation facilities. Ambassador, Chinese companies such as SUNEC, CWE, SUNTECH, CHINT, Goldwind and Datang Renewable Energy are now the serious players in the Pakistan market. In 2008 there was not a single approved EPC contractor or turnkey supplier available to Pakistan, today more than seven top wind turbines manufacturers including Vestas (Denmark), Nordex (Germany), Siemens (Germany), General Electric (USA), Hyundai (Korea), Goldwind (China), Sunec (China) etc are offering wind turbines, fully backed by EPC contract and operation and maintenance for an extended period.
He said there are many more to come. AEDB had set a target for Wind Power Generation at 500 MW for the year 2012, however, the AEDB chairman has set the target of 1,500 MW for early 2013 – a challenging target, which appeared unrealistic in the beginning, now seems to become achievable, because of the accelerated processing of land and the attractive provision of feed in tariff by NEPRA.
AEDB CEO said 2012 will be remembered as the year of the wind power in Pakistan. We plan to be inaugurating a project every month in 2012, and will only increase. The year 2012 would also be remembered as the year of RE for Pakistan as on stand alone grid connected projects based on Baggass to power, small and micro hydro, solar PV will also make their presence felt, and so will the decentralised application in the areas of water pumping, street-lighting, solar water heaters and waste to energy, being developed with the assistance of the World Bank and USTDA will start to mature.