11. UNIQUE FEATURES OF POLICY
Wind Risk / Hydro Risk – Responsibility of the
Government
Wind ddaattaa mmeeaassuurreedd,, vvaalliiddaatteedd bbyy RRiissØØee NNaattiioonnaall
LLaabboorraattoorryy ooff DDeennmmaarrkk
AAttttrraaccttiivvee ccoosstt ooff llaanndd ffoorr wwiinndd eenneerrggyy pprroojjeeccttss
((€€55 ppeerr aaccrree ppeerr yyeeaarr))..
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
12. 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
13. 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)
15. CURRENT SSTTAATTUUSS OOFF WWIINNDD IIPPPPss
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.
16. 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
17. A NEW ARREEAASS CCOOVVEERREEDD IINN TTHHEE
220110 PPOOLLIICCYY
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)
Editor's Notes
The Alternative Energy Development Board was established in May 2003
The purpose of establishing the Board is to implement various policies, programs and projects through private sector in the field of Alternative or Renewable Energy Technologies
The objective of the Alternative Energy Development Board is to assist and facilitate development and generation of Alternative or Renewable Energy in order to achieve sustainable economic growth
Facilitate transfer of technology for development of an indigenous technological base through a diversified energy generation
Pakistan has a 1,046 Km coastline in the South
Average wind speed more than 7 m/s in Gharo Wind Corridor
Estimated wind potential more than 50,000 MW
Other sites in Balochistan and Northern Areas being identified
Some of the major factors that have contributed to the poor performance in the promotion of Renewable Energy in the past were (a) weak institutional capacity (b) non-existent enabling environment in terms conducive policies, regulations and incentives and (c) a lack of serious effort to establish a manufacturing base for the indigenization of renewable energy technologies in Pakistan.
One of the focus of AEDB, therefore, has been to address these weaknesses. And one of the means to do so has been to secure assistance from countries with a strong RE base and also from bilateral and multilateral donor agencies willing to invest in this field. After the establishment of AEDB a number of international agencies such as Asian Development Bank, GTZ, UNDP, USAID and many more have come forward to collaborate in the field of Renewable energy.
Carbon credit has also become a strong incentive for developed countries to invest in environment friendly technologies, in countries like Pakistan, in order to fulfill their obligations under the Kyoto Protocol. We would like to take full benefit from this situation.
Brief details of our current involvement with international agencies are shown in the slides shown.
GTZ
AEDB has signed a six year protocol with GTZ for the promotion of RE and EE in Pakistan. The German Govt has committed an amount of 3.5 million euros as grant aid for the first three years. The overall objective of the project is improved capacities/capabilities of the public and private sector in order to promote renewable energies as part of rural electrification and to implement activities of energy efficiency in small and medium-sized industries. The activities under this project will be defined in the Project Plan of Operation in November, 2005.
Asian Development Bank
AEDB signed an 8 month PPTA with the Asian Development Bank for identifying RE projects in all four provinces of Pakistan. The aim of the project is to identify RE projects which can be funded by the ensuing commercial loan.
AEDB has also signed a Small Scale Technical Assistance with the Asian Development Bank for the capacity building of AEDB, in which four domestic consultants have been hired by ADB ad provided to AEDB for a period of one year, after which the four consultants would be absorbed into AEDB.
GEF/UNDP
The first GEF/UNDP funded project relates to the “Sustainable Development of Utility Scale Wind power Production”. This is a two year project with a GEF funding of $ 3.1 million. The project aims to design an overall policy package to facilitate investment in wind energy, whereby providing a competitive enabling framework and corresponding incentive tailored for a market-on-grid wind energy production.
The second UNDP project is a $ 25,000 GEF funded PDF-A study relating to Productive use of Renewable energy through micro hydel projects has recently been signed. It is planned to start the project in Chitral area which is based on micro-hydel systems in the range of 100 – 300 KW per unit. About 43 locations have been identified of which 5 have been short listed for this study. A medium size project will ensue after completion of PDF-A and once investment funds are arranged.
1. Development of wind and solar energy to ensure that at least 5% of total national power generation capacity is met through these resources by 2030 (i.e. 9700 MW)
2. AEDB to ensure the installation of 100 MW wind power by June 2006 Gharo Sindh near Karachi and 700 MW by 2010. For first project Govt of Sindh must provide land latest by end March 2005.
3. Development of solar products like solar lights, solar fans, solar cooker, solar geyser etc. must be developed through private sector on top priority
4. Laws and taxes designed to encourage self energy generation by domestic sector like use of solar heating, solar geyser etc, and sparing valuable natural gas for industrial growth
5. Government has created an Alternative Energy Fund (AEF) for the operation of the Board as well as to initiate awareness and demonstration projects
Fund can be used for indirect subsides to foster sustainable development
Following are the sources of the fund
(a)funds provided by the Federal Government for payment of salaries, establishing infrastructure and running the day to day business of the Board
(b)loans or grants by the Federal Government or any Provincial Government or local authority
(c)other loans or funds obtained by the Board
(f)foreign aid, grants and loans negotiated and raised, or otherwise obtained, by the Board
(e)charges for services or for the provision of any information or report automated or otherwise to any government, private or any other person or entity
(f)fees and commissions collected by the Board as prescribed for time to time;
(g)income from the sale of moveable or immoveable property
(h)funds from floating bonds, shares, debentures, commercial papers, or other securities issued by the Board or through any other means; and
(i)all other sums received by the Board;