Iranian firm gets go-ahead for 50MW wind project in Sindh

Published: July 4, 2017
SHARES
Email
PHOTO: AFP

PHOTO: AFP

KARACHI: Since the US eased 37-year old economic sanctions on Iran, Pakistan has been looking to normalise trade ties with its neighbour.

The two bordering countries signed an agreement in April 2017 to open commercial bank branches to conduct trade through formal channels. Pakistan has been importing power from Iran for a long time, and in the latest move an Iranian company has been granted a power generation licence for its 10-year old proposed 49.5-megawatt wind power project in Sindh.

Early harvest project of CPEC: Wind power plant near completion, but transmission line not ready

The power regulator, National Electric Power Regulatory Authority (Nepra), announced on Monday that it has granted a power generation licence to Iran-Pak Wind Power (Pvt) Limited (IPWPPL) for a 20-year period from the day it starts commercial operations.

“The project will achieve [commercial production] by June 30, 2019,” Nepra said.

According to IPWPPL’s application for the grant of the generation licence, the cost of the project is estimated at $112.8 million, it was learnt.

The main sponsor of the IPWPPL project includes SUNIR (Iran Power & Water Equipment and Services Export Company) of Iran whereas the minority sponsors include the Planet Group and the Tufail Group of Pakistan, the authority reported. “SUNIR is an Iranian group company, constituted of 24 independent companies involved in manufacturing of a wide range of different equipment and a rich experience of engineering services and consultancy in water and electricity industries.

“Since its establishment in 1994, SUNIR has successfully performed a wide range of activities in more than 18 countries,” stated the documents.

SUNIR first expressed interest to set up the wind power project in in Pakistan in 2006. Later, it made huge efforts and spent time to acquire the required piece of land in the wind corridor of Sindh.

The project also qualifies for carbon credits. “Projects coming into operation up to the year 2020 can qualify for the carbon credits,” it said. IPWPPL is setting up an approximately 50-megawatts wind power project in the Jhimpir wind corridor of district Thatta.

Wind power capacities

Nepra said that the Alternative Energy Development Board has identified two wind corridors (of Jhimpir and Gharo) in the province of Sindh. The estimated potential for these two corridors is more than 50,000 megawatts.

Pakistan, China revise ‘priority list’ of CPEC energy projects

At the moment, around 13 projects with a cumulative installed capacity of around 650MW have been installed and commissioned whereas another 25 projects including IPWPPL, with cumulative capacity of around 1400MW, are in various stages of implementation.

Published in The Express Tribune, July 4th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

Reader Comments (5)

  • k
    Jul 4, 2017 - 10:44AM

    while Sweden, Denmark, Australia, USA, India, China are using world class SUZLON technology, Pakistani politicians are using national money to third grade unknown Iranian company? Is this contract is transparent?Recommend

  • m............y.patni
    Jul 4, 2017 - 11:13AM

    According to IPWPPL’s application for the grant of the generation licence, the cost of the project is estimated at $1.8 million, it was learntRecommend

  • Zaida Parvez
    Jul 4, 2017 - 11:36AM

    Does our country have the skill to do anything useful?? Even Iran now has to implement solar power projects.Recommend

  • rich
    Jul 4, 2017 - 12:09PM

    what can u buiild with 1.8 million dollar?

    usually power project of this cost are used by very small indus, a small village where everyone puts in money ect

    i think it may be mor then 1.8 millionRecommend

  • Farru
    Jul 4, 2017 - 6:27PM

    Good.

    Why only 13 projects of 650MW have been installed so far?

    The progress is embarrassingly slow. Given the number of interested investors, it should have been around 3000-4000MW.

    Slow progress in last few years should be investigated by an independent body.Recommend

Leave Your Reply Below

Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express Tribune does not bear any responsibility for user comments.

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.

More in Business