Wind projects in Gharo, Jhimpir: 400 megawatts power to be added by year-end: AEDB

At-least 400 megawatts electricity from two wind projects in Gharo and Jhimpir will be added to the national grid by end of current year. This was stated by Chief Executive Officer of Alternate Energy Development Board, Arif Alauddin while talking to media persons at a reception organised by Energy Update and National Forum for Environment and Health, here on Friday.
Observing 2012 as the year for wind energy, Allauddin said, investment commitments of $500 million have been made for energy projects and four wind projects are at advanced stage. Highlighting some ongoing projects, he said that 12 projects have completed their financial close, which includes Zorlu of Turkey, CWE of China, Three Gorges, Fauji Fertilisers, Fauji Foundation, Arif Habib and Lucky Cement. He said that 1,200 MW will be added to the national grid every year from 2013.
Replying to a question, Alauddin said that Zorlu will sign a power purchase agreement with National Transmission and Despatch Company this week. He informed that AEDB has a large number of applications from potential investors for windmills to generate 1,600 MW electricity. They have also submitted the surety amount of $300,000, he added.
To a question about circular debt, Alauddin said this is not an issue with wind energy projects. He said AEDB has arranged a counter guarantee worth $200 million from Asian Development Bank for the private sector wind projects. ADB has offered $500 million loan for the development of alternate energy projects in Pakistan, which it converted into a counter guarantee for alternative energy projects from private sector at the request of AEDB, and allocated $200 million as an initial step. He added that currently, seven projects are under consideration for this counter guarantee.
CEO AEDB said that financing is no more an issue for windmills after this facility. Most of the wind projects are being financed by Habib Bank Ltd, he added. He, however, said that acquisition of land is still an issue, which the AEDB is trying to resolve with the help of Sindh Government. Responding to a question about tariff for wind energy, he said up-front tariff is fixed at 14.66 cents per kilowatt. President NFEH, M. Naeem Qureshi, Dr Qazi Kamal, Chairman Utility Services of Site Association and others were also present on the occasion.