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Accelerating Wind Power Deployment in Pakistan

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Accelerating Wind Power Deployment in Pakistan November 2016 ∎ WWEA Policy Paper Series (PP-02-16) Accelerating Wind Power Deployment in Pakistan Capacity Building and Policy Options Copyright © WWEA 2016 Unless otherwise indicated, material in this publication may be used freely, shared or reprinted, so long as WWEA is acknowledged as the source. This policy paper has been produced under the research project, “Pakistan's Wind Energy Sector – Capacity Building of Public and Private Sector Officials”, implemented by the World Wind Energy Association and Heinrich Bӧll Stiftung, Pakistan. A training workshop will be organised based on the findings of this policy paper later this year. The policy paper has been authored by Zeeshan Ashfaq and edited by Stefan Gsӓnger. The author duly acknowledges the support and invaluable contributions from public and private sector decision makers. About the Partners The World Wind Energy Association (WWEA), an international non-profit organisation headquartered in Bonn, Germany, is working in cooperation with various governments and international agencies to promote wind energy uptake worldwide. With a network of associates in more than 100 countries, developed and developing economies alike, it has assisted many governments, multilateral organisations in developing effective policies for renewable energy technologies' promotion. Heinrich Böll Foundation is a German political non-profit organization affiliated with the Green Party with head office in Berlin. The main tenets of the organisation are ecology and sustainable development, democracy and human rights, self-determination, peace and justice. The role of the Pakistan office is to engage in political dialogues, discussions and support projects in the field of Ecology & Energy, Democratization and Peace & Security. It supports and strengthens participation, pluralism and the rule of law in the region. Accelerating Wind Power Deployment in Pakistan Capacity Building and Policy Options Zeeshan Ashfaq Lead Author Stefan Gsӓnger Editor Accelerating Wind Power Deployment in Pakistan Preface by the World Wind Energy Association WWEA is very pleased that with this study, we can Without doubt, there are sll many knowledge present already the third publicaon on what we gaps, in industry, in government, in the finance have been doing in order to accelerate wind sector and in general in the public. This third power deployment in Pakistan. phase of WWEA's efforts to support the wind power market in Pakistan aims at filling such Since WWEA has started this work in the year knowledge gaps in parcular with regard to public 2014, in cooperaon with several key partners, a sector decision makers. lot has happened within Pakistan but also on the internaonal level: Pakistan, aer all, has now a I would like to say thank you for a very fruiul sizable wind market with 590 MW of installed cooperaon especially to Heinrich Böll Founda- capacity and 298 MW of projects about to be on Pakistan who enabled us to undertake these installed. Wind power, hence, is about to become acvies, to the Alternave Energy Development a pillar of Pakistan's power supply. Board of the Government of Pakistan as well as to all other government agencies who have been On the internaonal level and at the same me, cooperang closely on this project, to all our the Paris Agreement has brought a fundamental partners in the wind sector within and outside paradigm shi with regard to the global energy Pakistan, personally to Mr. Shahid Hamid who has supply paerns: In fact, the world's 195 govern- been giving us his valuable advice and guidance, ments agreed in Paris to switch completely to and aer all, to our researcher, Mr. Zeeshan renewable energy by the year 2050. Just very Ashfaq, who has been the motor inside the recently, almost 50 countries declared at the UN project. Climate Change Conference in Marrakech that they intend to move as fast as possible to a 100% May this publicaon contribute to further speed renewable energy supply. up wind and renewable energy deployment in Pakistan! Pakistan has all the resources to do such a step as well. We are very pleased that we have been able Stefan Gsӓnger to support the Government of Pakistan on the Secretary General way to a renewable energy future, and we are ready and prepared to give our advice on the next praccal steps. I Capacity Building and Policy Options Preface by Heinrich BÖll Stiftung The year 2015 had a special significance with implementaon and build the capacies of its regards to global priority seng around pathways employees to achieve opmum benefit and for sustainable development. The landmarks in desired outcomes. this regard are the Sustainable Development Goals and the Paris Agreement. The two empha- Third in the series of publicaons, this paper, size on one of the three pillars of sustainable “Accelerang wind power deployment in development, i.e. environment, and urge world Pakistan: Capacity Building and Policy Opons” leaders to translate the on-paper commitments recommends policy opons and capacity building into acons. As a first step, both agreements tools to accelerate wind power deployment in stress on the global phase out of carbon emis- Pakistan. It highlights human capacity needs sions therefore requiring acons on a phase-in including the ability to manage a high level of towards a sufficient and sustainable use of Renewable Energy integraon; beer under- renewable energy. standing for Renewable Energy cosng and tariff determinaon and of financial modelling Given the recent increase in Renewable Energy techniques for financial closure. The findings of investments around the world the future seems this study will be translated into acon through promising. It is a great opportunity for developing capacity building for actors involved in the wind countries to start with clean energy to meet their sector in Pakistan. Today's energy security chal- growing energy needs. In developing countries lenges present an opportunity for Pakistan to investment in Renewable Energy projects does make choices which fix energy problems not only mean development of necessary infra- sustainably. All relevant stakeholders from public structure. Addionally operaonal capacies and and private sector, academia and civil society efficient systems in the government need to be need to be made aware about alternave energy build. Therefore, support to the growing Renew- soluons that present sustainable and climate able Energy sector in a country like Pakistan just opons for the future. requires direcon and analysis at every step. The Heinrich Bӧll Sung Pakistan has supported Heinrich Bӧll Sung Pakistan therefore is research and exchange among experts as well as delighted to be able to support this connuous awareness raising on sustainable renewable effort of the World Wind Energy Associaon as a energy opons since many years. contribuon towards creang beer understand- ing about the importance of renewable energy In 2013 the foundaon entered into partnership usage among decision makers and civil society in with World Wind Energy Associaon focussing on Pakistan. While renewable energy sources sll idenfying barriers for wind power development make a small proporon of Pakistan's energy mix in Pakistan. Two dedicated internaonal confer- and much of the focus of the government remains ences and two policy papers looked into idenfy- on large infrastructure projects, we hope that this ing issues at stake and ways to overcome the publicaon will promote discussions about barriers in the wind power sector in Pakistan. One alternave energy sources and lead to policy gap specifically highlighted in the previous studies developments and realisc soluons for was the issue of operaonal efficiency of promong of the wind energy sector in Pakistan. government instuons. It was found that the government, despite having developed a Renew- Marion Regina Müller able Energy policy in 2006, sll needs to invest in Country Director, Pakistan. relevant systems and procedures for policy II Accelerating Wind Power Deployment in Pakistan EXECUTIVE SUMMARY Year 2015 defined the future agenda of renewable costs as they seem less clear on the holisc picture energy (RE) for coming decades. UN General presented by RE development. Investors argue that Assembly adopted “Affordable and Clean Energy” as a although financing RE projects is no longer a bigger sustainable energy goal. Later, historic Paris challenge, local lenders however require capacity Agreement was reached to limit global warming to 2 development on project finance. respecvely 1.5 degrees Celsius by 2050 which is impossible without large scale RE deployment. Last Responses from public officials complement concerns year also witnessed record level of RE investment and raised by the private sector. It is stressed that capacity addion indicang a strong business case for professional capacies in the areas idenfied by RE in future. WWEA must be enhanced accordingly as more RE is expected to come online in future. Even though, RE has been idenfied vital to achieve sustainable development targets, some challenges To address the grid issue, study proposes that private sll remain especially in the developing world. First, to investment should be encouraged to strengthen accommodate higher share of variable renewable exisng grid system. Developing hybrid wind-solar energy (VRE), upgrade of exisng grid and projects, using latest forecasng techniques for transmission infrastructure is required. Second, as RE integrated RE and smart grid technologies are some of has become cost compeve to convenonal sources the soluons to overcome RE grid integraon of energy, cost reducon trends must be translated in challenge. a rigorous but careful manner in developing countries. Third, financing RE projects is sll a major barrier in Public officials oen cite that cost of wind energy many parts of the world. There is a growing need to generaon is higher as compared to other sources of engineer policy as well as capacity building tools to energy. It is a fact that wind power costs are going overcome these challenges. down in Pakistan. Moreover, wind energy costs should been seen beyond levelized cost of electricity and This policy paper aempts to build capacies of public overall system value needs to be factored in.
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