ADB $75 million loan for Pakistan’s largest wind energy farm
The deal is ADB’s third wind energy investment in Pakistan’s burgeoning independent power producer segment.
Power from the project will be sold under a 20 year take-or-pay energy purchase agreement under a feed-in-tariff to Pakistan’s Central Power Purchasing Agency.
The three 50 megawatt (MW) wind farms, situated 100 kilometers northeast of Karachi at Jhimpir, will generate a total of 520 gigawatt-hours annually and are expected to be completed by March 2018.
The project sponsors include Sapphire Textile Mills, a leading local energy developer, and Bank Alfalah, Pakistan’s sixth largest bank by market share.
Pakistan has launched several initiatives to promote private sector participation in the country’s energy sector, with a concerted push to build up its renewable energy resources and to cut its heavy dependence on fossil fuels.
Power shortages are a major obstacle in Pakistan’s economic development, with demand for electricity outpacing supply.
ADB is Pakistan’s largest development partner in the energy sector with both sovereign and non-sovereign investments, including support for policy reforms. ■