Emerging Wind Energy Market Pakistan Dr. Patric Kleineidam 3.11.2016, Karachi, Pakistan

Chapter 1 Chapter 2 Chapter 3 Chapter 4 OVERVIEW Company Overview & Experiences Chapter 2 Global Development of Wind Energy Market Chapter 3 Situation of Pakistan Chapter 4 Conclusions 19.11.2018 Lahmeyer International GmbH 2016

Company Overview & Experiences 19.11.2018 Lahmeyer International GmbH 2016

33 countries LAHMEYER - a company of TRACTEBEL 4,500 employees 605 M€ Turnover 4,500 employees 33 countries LAHMEYER - a company of TRACTEBEL Lahmeyer Group: Since December 2014 Lahmeyer belongs to TRACTEBEL (Belgium), a company of ENGIE (former GDF SUEZ) Foundation: 1966 Headquarter: Bad Vilbel, Germany Activity: Technical and economic planning and consulting services Fields of Activity: Energy Hydropower & Water Resources Building & Transportation 19.11.2018 Lahmeyer International GmbH 2016

Key Wind Energy References Wind measurement masts installed > 265 Country wide wind mappings 14 WAsP Wind resource assessments > 1,200 wind farms CFD wind studies > 100 wind farms Feasibility studies > 165 wind farms (> 8,900 MW) Due diligence studies > 965 wind farms (> 28,500 MW) Construction supervision > 110 wind farms (> 3,600 MW) Operation and maintenance supervision > 90 wind farms (> 2,500 MW) 19.11.2018 Lahmeyer International GmbH 2016

References in Wind Energy in Pakistan since 2007 Wind resource assessments 18 wind farms (> 900 MW) Feasibility / Due Diligence studies 20 wind farms (> 1,000 MW) Signed Construction Follow Up 18 wind farms (> 850 MW) Operation and maintenance 5 wind farms (> 200 MW) since 2011 in cooperation with 19.11.2018 Lahmeyer International GmbH 2016

Global Development of Wind Energy Market 19.11.2018 Lahmeyer International GmbH 2016

Maturation of Wind Energy Markets Governmental driven Information gathering Resource mapping Pilot projects, often (co-)financed by IFIs Entrance of private sector Support scheme being established Small market Project financing Private projects Many players Large experience 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2011-2015 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Real Data (2011-2015), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2012-2016 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Real Data (2012-2015) and Forecast (2016), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2013-2017 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Real Data (2013-2015) and Forecast (2016-2017), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2014-2018 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Real Data (2014-2015) and Forecast (2016-2018), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2015-2019 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Real Data (2015) and Forecast (2016-2019), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Cumulative Wind Energy Installations 2016-2020 < 0.5 GW 0.5-1 GW 1-3 GW 3-20 GW > 20 GW Forecast (2016-2020), based on BTM/Navigant 19.11.2018 Lahmeyer International GmbH 2016

Global Developments of Wind Energy Markets Undergoing a significant diversification, resulting in several new emerging markets Earlier larger markets slow down (e.g. Spain, Italy) Why? Stable framework conditions are key 19.11.2018 Lahmeyer International GmbH 2016

Situation of Pakistan 19.11.2018 Lahmeyer International GmbH 2016

Development in Pakistan 2003 Establishment of Alternative Energy Development Board (AEDB) 2006 Announcement of Policy for Development of RE for power generation (Cost-plus-tariff, wind risk guarantee) 2011, 2014 Up-Front-tariff (FIT) announcement, revision 2016 Tariff under revision Data based on Navigant Pakistan can be characterised as Emerging Wind Energy Market 19.11.2018 Lahmeyer International GmbH 2016 17

Current Impressions from Projects in Pakistan Pakistan has a good potential based on current technical and commercial parameters. Enhancement of interconnection infrastructure is important to take benefit of this potential. We expect that significant new capacities can be added in Jhimpir and Gharo with manageable grid reinforcements in addition to the projects already under planning. So far the projects are concentrated mainly in one region, the projects influencing each other (additional wake effects), efforts in establishing further project areas could facilitate further implementations The Tariff is under evaluation and will be updated. As long as the new tariff is not yet established, this leads to uncertainties for the project developer Momentarily the market is attracting more interest. Uncertainties can reduce this attraction 19.11.2018 Lahmeyer International GmbH 2016

Conclusions 19.11.2018 Lahmeyer International GmbH 2016

Conclusions Pakistan can be seen as emerging wind energy market is attracting national and international investors and financial institutions By OsvaldoGago and GDJ (from Wikimedia) 19.11.2018 Lahmeyer International GmbH 2016

Conclusions Pakistan can be seen as emerging wind energy market By OsvaldoGago and GDJ (from Wikimedia) Pakistan can be seen as emerging wind energy market is attracting national and international investors and financial institutions Recommendations for a further growth: Reduction of uncertainties Keep clear permitting processes Keep well balanced tariff Make good grid connection possibilities available Support development of further project areas Execute professional wind farm planning 19.11.2018 Lahmeyer International GmbH 2016

THANK YOU FOR YOUR ATTENTION

CONTACT lahmeyer.de Lahmeyer International Dr. Patric Kleineidam Head of Department Wind Energy Tel.: +49 6101 / 55-1645 Fax: +49 6101 / 55-1520 Patric.Kleineidam@de.lahmeyer.com lahmeyer.de 19.11.2018 Lahmeyer International GmbH 2016