The Alternative Energy Development Board, since its inception in July 2003, has not been able to establish a single project, either wind or solar energy, worth mentioning. It had taken over the UNDP sponsored 100-150 MW wind farm project for implementation that was originally to be set up by the Ministry of Environment, Local Government and Rural Development, and for which feasibility study was prepared seven years ago.
Thus, three wind farms, each of capacity 40 to 50 MW, were planned by the AEDB to install, in the first phase, on BOOT basis in Sindh, rather on a fast-track basis. After evaluation of proposals received from many international and domestic entrepreneurs, the Board awarded two projects, 45 MW to New Park Energy Ltd and 100 MW to Axor Group Inc of Canada.
These projects were to be completed by June 2005. None of the projects could, however, see the light of the day, as there is no physical progress as yet.
There is also high project cost ---a 45-MW wind energy project costing $400 million---and consequently, the generation cost, which is worked out as Cents 7 per kWh.
Obviously, it will not be economically viable at this cost. The world over wind energy system is known for moderate capital outlay, short lead time, lower line losses and increased energy efficiency of electricity distribution.
Thus, the wind energy power generation cost is much lower than the oil- or gas- based projects. In the USA, wind power generation costs to an average of 2.5 Cents per kWh. India claims wind power generation cost between 2 to 2.5 Indian Rupees depending upon site conditions.
As regards small projects, the Alternative Energy Development Board has taken all the credit for the commendable work done by the Pakistan Council of Renewable Energy Technologies.
Operating under the Ministry of Science and Technology, the Council is responsible for research, development and promotion of technologies related to alternative resources of energy. Recently, the Council has initiated a number of projects of installing small wind turbines and micro hydropower units, in various parts of the country.
The Policy for Power Generation Projects Year 2002 provides fiscal and financial incentives and concessions to power plants of 50 MW capacity and above, to be implemented through a one-window facility available at the Private Power and Infrastructure Board.
Therefore, making AEDB responsible for wind energy farms is negation of the policy of the government, which may not yield the desired results.