Wind ENERGY IN PAKISTAN Potential, Current Status & Prospects 18th July 2012

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) 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

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 Energy Source Cost/Unit Waste-to- Energy 6-9 Cents Small Hydro 6 – 9 Cents Wind 14.66 Cents Solar 20+ Cents RFO (Thermal) Expensive* *dependant on fuel oil prices 4

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 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 Gharo Wind Corridor

WIND MEASURING SITES IN SIND

1st Phase Wind Power Program in Sindh Province

AREA WHERE WIND POWER PROJECTS ARE BEING EXECUTED

MICRO SITING OF WIND FARMS IN JHIMPIR BY AEDB EXPERTS

Land Allocation - Jhimpir

Wind MET Masts for Wind Mapping Agency Quantity Location IPPs 16 Gharo & Jhimpir (Sindh) AEDB / UNDP-GEF 10 Gharo Wind Corridor (Sindh) Barrick Gold Corporation 5 Reko Diq, Balochistan India has installed 1100 Wind measuring masts for the development of Wind program.

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

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. Almost free of cost land for wind energy projects (7 Euros per acre per year) Pre-Feasibility has been made Wind data measured, analyzed and Wind Risk for the first few projects is taken by Government 30% Capacity factor guaranteed in Gharo ~ Keti-Bandar area Tariff to be calculated on the basis of 30% capacity 15% Return on Equity (ROE) guaranteed

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.

Project In Pipeline Projects in Pipeline: M/s FFC Energy achieved Financial Close in June 2011. M/s Zorlu Enerji 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 Tenaga Genarasi Lucky Energy Gul Ahmed Power Metro Power Sapphire Wind Energy Dawood Power

Project Cost (Million USD) First 550 MW WPPs Name of Project Capacity (MW) Project Cost (Million USD) Status Financial Closing 1 Fauji Fertilizer 50 133.56 Under Construction Achieved- June 2011 2 Zorlu Enerji Pak 56 143.60 Achieved- May 2012 3 Three Gorges 134.75 Oct - 2012 4 Foundation 1 128.69 -Tariff Received- Aug - 2012 5 Foundation 2 128.70 6 Lucky Energy 132.53 Dec – 2012 7 Sapphire Power 128.87 8 Tenaga Generasi 129.67 9 Metro Power 132.56 10 Gul Ahmed 132.87 11 Master Energy 133.68 -Tariff Awaited- Feb - 2013

List of Fast Track Wind Power Projects Sr. No. Company Name Project Capacity 1. NBT Wind Power (Norway) 500 MW 2. Titan Energy Pakistan (Pvt.) Ltd. 10 MW 3. Tapal Wind Energy (Pvt.) Ltd. 4. Ismail Power Limited 5. Fina Energy (Turkey) 250 MW 6. FFC Energy 100 MW 7. Japan Green Power (Japan) 50 MW 8. Associate Technologies 9. Anadulo Wind Pakistan (Turkey) 10. China Sunnec Energy (Pvt.) Ltd 11 System Wind Energy (Turkey) 12. Hydro China (China) 300 MW 13. HZ Wind Power (China) 14. Hartford Energy (USA) 45 MW   1582.4 MW

Pakistan: Investors Choice Destination (Norway, Turkey, Iran, Germany, USA, China and Japan) Foreign investment by 2013: (US $ 1.2 – US $ 2.7 Billion) 400-450 MW 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 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

Under Construction Wind Farm

Turbine Foundation – With 62 Ton Steel

Zorlu Wind Farm Jhimpir

Roter – Weights 72 tonnes

Requires 600 Ton Crane – Not Available in Pakistan

PICTURE OF THE WIND BLADES

Zorlu Wind Farm

56.4 MW Wind Power Project of Zorlu Enerji under construction

49.5 MW Wind Power Project of FFC Energy Limited under construction

Construction / civil works at 49 Construction / civil works at 49.5 MW wind project of M/s Three Gorges Pakistan

Thank You