This was stated by Chief Executive Officer of Alternate Energy Development Board (AEDB) Arif Alauddin while talking to media persons at a reception organized by Energy Update and National Forum for Environment and Health (NFEH) here on Friday.
Observing 2012 as the year for wind energy, Arif Allauddin said that investment commitments of $ 500 million have been made for energy projects and four wind projects were at advanced stage.
President NFEH M.Naeem Qureshi, Dr. Qazi Kamal Chairman Utility Services of SITE Association and others were also present on the occasion.
Highlighting some ongoing projects, he said that 12 projects have completed their financial close which included Zorlu of Turkey, CWE of China, Three Gorges, Fauji Fertilizers, 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 the National Transmission and Despatch Company (NTDC) this week.
He said that the AEDB has a large number of applications from potential investors for wind mills to generate 1600 MW electricity. They have also submitted the surety amount of $ 300,000.
To a question about circular debt, Alauddin said this is not an issue with wind energy projects. The AEDB has arranged a counter guarantee worth $ 200 million from the Asian Development Bank (ADB) for the private sector wind projects.
The ADB had 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.
He said that currently, seven projects were under consideration for this counter guarantee.
Alauddin said that financing is no more an issue for wind mills 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 the tariff for wind energy, he said upfront tariff is fixed at 14.66 cents per kilowatt.