Wind Sector continues to Struggle in Pakistan

April 14, 2011

The Alternative Energy Development Board of Pakistan has revealed that the 2,300 MW of power project deals signed between the country and China are in the danger of being shelved unless China is offered competitive tariffs. The two countries had signed an MoU for 2,000 MW of wind and 300 MW of solar energy generation during a visit from Chinese Premier Wen Jiabao in 2010. The agreement for the two projects was signed between the Three Gorges Corporation of China (CTGPC) and the Alternative Energy Development Board (AEDB) of the Ministry of Water and Power.

Of the total of 2,300 MW planned, 1,000 MW of wind and 100 MW of solar energy were to be generated in Sindh, while 1,000 MW of wind and 200 MW of solar were planned for Punjab, over the next three years. China was to make the entire investment and therefore was concerned about the affordability of the projects. If the final price is not affordable then the agreement is expected to fall through.

However, the silver lining for Pakistan was a joint-venture agreement with Sanir, an Iranian public company with a Pakistani private firm, for the construction of a 1,000 MW wind farm in the province of Sindh. Sanir has already bagged a contract for the construction of another 50-MW wind power plant in Pakistan and for the development of electricity infrastructure.


US to fund 150 MW Wind Project in Pakistan

February 8, 2011

The governments of the US and Pakistan have signed an agreement with AES Corporation to develop a 150-MW wind project in Pakistan’s Gharo Corridor. The US special representative for Afghanistan and Pakistan, Richard Holbrooke, and Pakistani water and power minister Javed Iqbal were among those signing an agreement to develop the $375 million project.

The US Embassy in Islamabad said the project would reduce Pakistan’s dependence on fuel imports and save Pakistanis $45 million a year. The Pakistani government and AES will invest in the project, leveraging a loan from the US Overseas Private Investment Corporation (OPIC), a US agency that sells foreign investment services. Pakistan will own a minority stake through a grant from the US Agency for International Development (USAID). These shares will be privatised over time, with the proceeds financing future energy projects.

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