PAKISTAN Wind energy Basics November 2006 Mechanics of Wind Energy PAKISTAN March 2007

Index IPEK energy Wind Energy – An Introduction Wind Energy – Global Scenario Legal Frame / AEDB and Role of AEDB Wind Resources in Pakistan Wind Energy – Some Practical Issues Wind Energy – An Analysis / Outlook Pakistan

IPEK energy GmbH

IPEK energy GmbH We are an independent engineering & consultancy company support you from acquisition to turnkey ready construction of renewable power generation systems worldwide offer skilful support with international financing and after commissioning take the technical business management are very flexible and act in close cooperation with our clients exactly to the requirements of the international markets

Key Services Engineering & Consulting acquire suitable sites complete permitting procedures negotiate required Power Purchase Agreement (PPA) organize international funding supervision of construction till take over of the plan control operations management Wind Measuring standard IEC confirm measuring trough Wind Mast and SODAR measuring Bankable Feasibility Studies Due Diligence Emissions Trading Air Density and Rotor Area A wind turbine obtains its power input by converting the force of the wind into a torque (turning force) acting on the rotor blades. The amount of energy which the wind transfers to the rotor depends on the density of the air, the rotor area, and the wind speed. The cartoon shows how a cylindrical slice of air 1 m thick moves through the 2.300 m² rotor of a typical 1MW wind turbine. With a 54m RD each cylinder actually weighs 2,8t, i.e. 2.289m² x 1.225kg. For a Turbine with 77m RD= 5,7t Density of Air The kinetic energy of a moving body is proportional to its mass (or weight). The kinetic energy in the wind thus depends on the density of the air, i.e. its mass per unit of volume. In other words, the "heavier" the air, the more energy is received by the turbine. At normal atmospheric pressure and at 15° Celsius air weighs some 1.225kg/m³, but the density decreases slightly with increasing humidity. Also, the air is denser when it is cold than when it is warm. At high altitudes, (in mountains) the air pressure is lower, and the air is less dense.

Osman Ipek – Managing Director Electrical Engineer (Main Branch Renewable Energies) Active in Wind Branch since 2000 project development project management project implementation engineering due diligence measurement and monitoring systems wind resource assessment teaching and education, concepts; strategies; system layout 18 Wind farm Projects realized More than 800MW projects developed in 6 countries Due Diligence of more than 220MW wind projects Feasibility studies for more than 40 wind farms Currently on going Projects of >500MW in Turkey, Iran and Pakistan

Osman Ipek – Managing Director Countries of Work Experience (alphabetical order): Croatia Germany Hungary Iran Italy Lithuania Pakistan Spain Turkey Yemen

Membership/ Partners Memberships Partners German Wind Energy Association WINDTEST Grevenbroich GmbH Wind Rose Consultancy Pakistan Wind Energy Association The Association of German Engineers

Wind Energy – An Introduction

How wind is converted to power? A wind turbine obtains its power input by converting the force of the wind into a torque (turning force) acting on the rotor blades The amount of energy which the wind transfers to the rotor depends on the density of the air the rotor area and the wind speed. In other words you can get more energy: the "heavier" the air the “bigger” the rotor the “higher” the wind speed

Key Components of a Wind Farm Wind Turbines Civil Works Foundations Road Network Crane Places Service buildings Residential Quarter Electrical Works Step-up transformers Wiring Sub-station for power delivery Wind Measuring Towers

Components of Wind Turbine 690V

Wind Energy – Global Scenario

Global Cumulative Installed Capacity 1995-2006

Global Annual Installed Capacity 1995-2006

Capacity Addition - 2006

Annual Installed Capacity by Region Pakistan ?

Turbine Size Growth

Basis Frame of Wind Energy Investment Legal Frame Wind Energy potential Tariff

Legal Frame in Pakistan Alternative Energy Development Board (AEDB)

Background Government of Pakistan created the Alternative Energy Development Board (AEDB) in May 2003 to act as the central national body on the subject of Renewable Energy Air Marshal (Retd) Shahid Hamid was appointed as the Chairman of the Board

Target of AEDB Ensure 10% Share of Alternative Energy Technologies in National Grid by Year 2015 Act as Central Agency a- Awareness b- Policies c- Facilitate Creation of Base in Pakistan for Alternative Energy (AE) Technologies Develop National Plans and Policies for AE a- Tax Holidays b- Encourage Private Sector c- Facilitate Investment Foster Sustainable Development a- Facilitate Enhancement of Technical Skills. b- Initiate & Incubate Projects

Achievements Working actively in the fields of: Wind Power Solar Power Micro Hydels Biomass

Why Wind Power for Pakistan Vast resources (estimated capacity around 40,000 MW) Area closer to the Grid resulting in easier off-take by power purchaser Wind Energy is a proven technology which can be trusted and guaranteed for project life Most Cost effective (after small hydro which are located in remote inaccessible areas and with grid availability)

Benefits for Sponsors – Legal Frame Guaranteed Sale Wind Risk is covered by the Gov. of Pakistan Guaranteed Returns for Investors Protection against foreign exchange rate fluctuations Protection against inflation in local markets No Taxes (income / import etc) Benefit of Carbon Credits shared Complete Security package to protect Interests of Investors and Lenders

AEDB - Wind Power LOIs have been issued to almost 80 interested Investors Investors are coming from Pakistan but also from Canada, Malaysia, Turkey, USA etc Policy for development of renewable energy in Pakistan has been approved PPA is in final stage Up-front Tariff have been approved by NEPRA to facilitate fast track project development Several Investors have accept the approved Tariff of NEPRA

LOI – Procedure in Pakistan Registration with AEDB Submission of proposal to AEDB Issuance of LOI by AEDB on submission of fee of Rs. 600,000 - after due diligence of financial strength of the company Land allocation (on availability from Gov. of Sindh) Feasibility Study (for onward submission to NEPRA & NTDC/KESC after AEDB's vetting and approval) Generation License (from NEPRA) Power Purchaser's commitment for purchase of power Tariff acceptance. Energy Purchase Agreement Implementation Agreement LOS (to be issued by AEDB)

Processing Schedule (< 50MW) Activity Typical Allowance (Days) a. Submission of proposal on raw site by the sponsors – b. Review of proposal by a Project Committee constituted by Chairman, AEDB 30 c. Posting of bank a guarantee by sponsors @ US$ 500 per MW 15 d. Issuance of Letter of Interest (LoI) by the AEDB 7 e. Initial time allowed to carry out feasibility study and term of the LoI Up to18 months, to be determined on a case-to-case basis f. Tariff negotiations between sponsors and power purchaser 90 g. Approval of tariff by NEPRA 180 (maximum period) h. Submission of Performance Guarantee @ US$ 2,500/MW by sponsors upon approval of tariff by NEPRA i. Issuance of LoS by the AEDB

A Typical Wind Farm Project Plan

Basis Frame of Wind Energy Investment Legal Frame Tariff Wind Energy potential 

Tariff - International Wind Tariff onshore 2006 in comparison Pakistan

Basis Frame of Wind Energy Investment Legal Frame Tariff Wind Energy potential  

Wind Resources in Pakistan

Wind Resources in Pakistan The project area for the wind mapping was 1,100km along Sindh and Balochistan coast and up to 100km deep northward over land from the coast. 44 stations for collecting wind data have been installed to study the wind regime as shown in figures.

Wind Resources in Baluchistan List of 23: Aghore, Basol, Bella, Gaddani, Gawadar, Hoshab, Hub-Choki, Jiwani, Liari, Makola, Managi, Mand, Nasirabad, Nelunt, Ormara, Othal, Pasni, Phore, Pishukan, Ramra, Tump, Turbat, Winder.

Wind Resources in Sindh List of 21 stations: Badin, Baghan, Churhar-Jamali, Gharo, Golarchi, Hawks-Bay, Hyderabad, Jati, Kadhan, Karachi, Kati-Bandar, Matli, Mirpur-Sakro, Nooriabad, Sajawal, Shah-Bandar, Talhar, Thano-Bula-Khan, Jamshoro, DHA Karachi, Thatta.

“Wind Corridor” in Pakistan . Average summer wind direction from Gharo to Hyderabad

Monthly Energy Yield vs. Time of Day

Wind at 80m height (calculated) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mean 5,6 6,1 6,2 9,1 11,1 12,1 10,2 11,7 9,4 5,4 4,9 8,1

Basis Frame of Wind Energy Investment Legal Frame Tariff Wind Energy potential   

Wind Power in Pakistan 14 Investors have been allocated land for project development 4 Investors have already installed own wind measuring stations 3 Investors have been started the foundation work of own wind measuring stations

Ground Breaking Ceremony MASTERWIND

Ground Breaking Ceremony ZORLU

Wind Energy – Some Practical Issues

Wind speed The wind speed is extremely important for the amount of energy a wind turbine can convert to electricity The energy content of the wind varies with the cube (the third power) of the average wind speed If the wind speed is twice as high it contains eight times as much energy 2³ = 2 x 2 x 2 =8 Wind measuring is important to get the real wind speed at the specific site

Wind measuring The best way of measuring wind speeds at a prospective wind turbine site is to fit an anemometer to the top of a mast which has the same height as the expected hub height of the wind turbine to be used. This way one avoids the uncertainty involved in recalculating the wind speeds to a different height. By fitting the anemometer to the top of the mast one minimizes the disturbances of airflows from the mast itself. If anemometers are placed on the side of the mast it is essential to place them in the prevailing wind direction in order to minimize the wind shade from the tower

50m Wind Mast –Zephyr Power

60m Wind Measuring Mast- NPE First 60m Wind Measuring mast in Pakistan (www.KonDen.com)

80m Wind Measuring Mast- BEL First 80m Wind Measuring mast in Pakistan (www.windroseone.com)

Selecting a Wind Turbine Site Wind Conditions Looking at nature itself is usually an excellent guide to finding a suitable WF site.  trees and shrubs (wind direction)  move along a rugged coastline (notice that centuries of erosion have worked in one particular direction)  Meteorology data, ideally in terms of a wind rose calculated over 30 years is probably your best guide,  Maybe wind turbines are already in the area

(Source: internet)

Jhimpir

Selecting a Wind Turbine Site (2) Grid Connection Large WTG have to be connected to the electrical grid (10-30 kV) Grid Reinforcement The electrical grid near the WTG should be able to receive the electricity coming from the turbine. Soil Conditions Both the feasibility of building foundations of the turbines, and road construction to reach the site with heavy trucks must be taken into account with any wind turbine project. Pitfalls in Using Meteorology Data Precision measurement of wind speeds, and thus wind energy is not nearly as important for weather forecasting as it is for wind energy planning, however. Wind speeds are heavily influenced by the surface roughness of the surrounding area, of nearby obstacles (such as trees, lighthouses or other buildings), and by the contours of the local terrain.

Transport

Transport (2)

Weights / Numbers Tower of GE 1,5: Number of Transport Trucks: 64.7m 86 tons 85m 98 tons 100m 113 tons Nacelle: 52 tons Hub: 14 tons Blades: 21 tons 50MW WF with GE1.5 Hub 64.7m: 33 x 173 tons = 5,709 tons Number of Transport Trucks: Tower: 3 Nacelle: 1 Hub: 1 Blades: 3 Total: 8 For a WF with 50MW  264 heavy trucks

Foundation

Crane

Tower installation

Tower installation

Nacelle and Blade installation

Transformer / Cable

Wind Energy – An Analysis

Worldwide Success Stories Annual turnover in 2006 of more than 13 billion Euros (17 billion US Dollars) Estimated 150,000 people employed around the world In Denmark, 20% of the country’s electricity is currently supplied by the wind In northern Germany, wind can contribute 35% of the supply In Spain, Europe’s fifth largest country, the contribution has reached 8%, and is set to rise to 15% by the end of decade > 2-3 billion Euro possible in Pakistan Add of new JOBS in Pakistan > 10% possible in Pakistan > Local Manufacture and Export ?

Benefits of Wind Energy Prices of fuel are expected to go up substantially in coming years On a long term basis, costs of electricity from renewable sources are more predictable than thermal energy Wind energy reduces cost of electricity now and in the future Much lower external costs, and has the benefit of additional earnings from CO2 certificates Wind is an indigenous resource. Does not require foreign exchange expenditure on import of fuel. Also adds security to countries energy mix. Long term supply of wind is assured Is environmentally friendly. Very low external costs

Summary AEDB has to developed a plan, that the federal goal of 10% of RE in 2015 can be reached 1,800 – 2,700 MW Wind farms are planned till 2015 Annual installation of 200 – 380 MW Government takes the “wind risk”  project financing is possible Land will be leased from Sindh Government to reasonable rates No costs for the external grid connection

For any further information please contact us: IPEK energy GmbH Marktplatz 4 48431 Rheine- Germany Tel.:   +49.5971.91 4619-0 Fax:   +49.5971.91 4619-20 www.ipek-energy.com