Wind ENERGY IN PAKISTAN Potential, Current Status & Prospects

2. Wind ENERGY IN PAKISTANPotential, Current Status & Prospects 18th July 2012

3. Alternative Energy Development Board (AEDB) • Implement policies, programs and projects through private sector in the field of Alternative Energy • Assist and facilitate development and generation of Alternative Energy to achieve sustainable economic growth • Encourage transfer of technology and develop indigenous manufacturing base for AE Technology • Promote provision of energy services that are based on Alternative energy resources • Undertake RE projects on commercial scale (AEDB Act 2010)

4. Why Alternative Energy For Pakistan? Reduced dependence on Imported Oil: 2011 Oil Import Bill: $11+ Billion 60% of the total Export Earnings 2015 Oil Import Bill US $ 38 Billion (ADB Estimate) 200% of the National Export Earnings Large Renewable Energy Potential: Wind*: 346,000 MW Solar*: Large Hydro : 58,000 MW Bagasse : 2,000 MW Waste to Energy: 2,000 MW Geothermal 2500 MW Off-Grid Application: 10,000 MW Alternate Fuels Large TBD *dependant on fuel oil prices

5. Wind Resource in Pakistan • A total of 346,000 MW potential • Pakistan has a 1,046 Km coastline in the South • Average wind speed more than 7 m/s above 60 m in Gharo Wind Corridor having estimated wind potential of more than 50,000 MW • Other sites in Balochistan, Punjab and Northern Areas identified Gharo Wind Corridor

6. WIND MEASURING SITES IN SIND

8. 1st Phase Wind Power Program in Sindh Province

9. AREA WHERE WIND POWER PROJECTS ARE BEING EXECUTED

10. MICRO SITING OF WIND FARMS IN JHIMPIR BY AEDB EXPERTS

11. Land Allocation - Jhimpir

12. Wind MET Masts for Wind Mapping India has installed 1100 Wind measuring masts for the development of Wind program.

14. UNIQUE FEATURES OF RE POLICY 2006 • Guaranteed Electricity purchase • Grid provision is the responsibility of the purchaser • Protection against political risk • Attractive Tariff – Cost Plus • Upfront Tariff of US$ cents 14.66 per kWh • Return on investment is between 17% to 18% • No Import Duties on Equipment • Zero Sales Tax • No Income Tax • Repatriation of Equity along with dividends freely allowed • Permission to issue corporate registered bonds • Permission to issue shares at discounted prices • Convertibility of PKR into USD

15. Other Incentives for Wind Project Investors • Standardized Project Documents have been developed keeping in view norms of international wind industry. • Regional EIA study for Gharo ~ Keti Bandar Wind Corridor has been conducted and EIA guidelines for EPA are developed • Electrical Studies have been conducted for wind power projects planned in Gharo ~ Keti Bandar Wind Corridor in short & medium term. • Grid Code amended specific to Wind Energy. • ADB has announced counter guarantee for wind IPPs; thereby resulting in reducing the credit rating risk of Pakistan for financing. • SBP has announced refinanced facility for RE projects up to 10 MW.

16. Developing the Wind Sector Created Enabling Environment: Feed-in-Tariff as well as Cost Plus tariff with Wind risk available Grid Code Amended for Wind Power Streamlined Land Issues by developing standardized, legally vetted documentation Created Lender / Investor Confidence Circular Debt Concerns Addressed – ADB Counter Guarantee in place Regained Lenders Confidence – OPIC supporting 4, IFC, ADB and IDB 3 Projects. Lender Acceptable Standardized the Project Documents (PPA / IA / Wheeling) Available Regional Environment Impact Analysis, approved by donors available to investors Reduced Lead Times And EPC Contract From Turbine Manufacturers All major turbine manufacturers now offering 4-6 months delivery and EPC contract Encouraged Local Manufacturing DESCON now producing Wind Masts for Nordix Machines. HIT negotiating Turbine Assembly with CWE. Inclusive / Cooperative Approach All Provinces now a full member of AEDB Board, and RE Policy Review team. New corridors identified. New wind masts installed Sindh, Baluchistan and Punjab through UNDP asst.

17. Project In Pipeline • Projects in Pipeline: • M/s FFC Energy achieved Financial Close in June 2011. • M/s ZorluEnerji achieved Financial Close in May 2012 • Following IPPs expected to achieve Financial Close for 50 MW each this year; • Fauji Foundation (100 MW) • Three Gorges First Wind Farm Pakistan • TenagaGenarasi • Lucky Energy • Gul Ahmed Power • Metro Power • Sapphire Wind Energy • Dawood Power

18. First 550 MW WPPs

19. List of Fast Track Wind Power Projects

20. Pakistan: Investors Choice Destination (Norway, Turkey, Iran, Germany, USA, China and Japan) Foreign investment by 2013: (US $ 1.2 – US $ 2.7 Billion) 400-450MW on existing Lands 1000 MW Additional if land is made available immediately. Next Focus: Indigenous Manufacturing Wind Sector is attracting the largest investment of any sectors in Pakistan

21. Under Construction Wind Farm

22. Turbine Foundation – With 62 Ton Steel

24. Zorlu Wind FarmJhimpir

25. Roter – Weights 72 tonnes

26. Requires 600 Ton Crane – Not Available in Pakistan

28. PICTURE OF THE WIND BLADES

29. Zorlu Wind Farm

30. 56.4 MW Wind Power Project of Zorlu Enerji under construction

31. 49.5 MW Wind Power Project of FFC Energy Limited under construction

32. Construction / civil works at 49.5 MW wind project of M/s Three Gorges Pakistan

33. Thank You