Impediments in the Execution of Wind Power Projects: A Case Study of Gharo Wind Projects in Sindh

Abstract

This paper analyses the current status of the wind power projects in Gharo Wind Corridor in Sindh. Recently the Government of Sindh has given lands to different investors to establish wind farms in the area. However since 2006 when the short term renewable energy policy was introduced only one project has been executed producing currently 6 MW of energy. The objective of this study is to find out what has been the problems associated with the implementation of the policy to promote renewable energy in Pakistan especially with reference to wind energy. The study has found out that the government agencies regulating the renewable energy sector were in-experienced in dealing with the renewable energy sector therefore they took lots of time in deciding about the important issues like tariff rate etc. The investors left the renewable energy sector due to slow processes on their work. However with the success of initial project and the acquirement of substantial experience in documentation the expectations are high that in couple of years at least 200 MW of wind energy projects would be added. The power firms also mentioned that lack of financing options, supply crunch from wind turbine manufacturers before financial crises of 2008 and volatile law and order situation in Pakistan have led to the non implementation of their power projects. It is recommended that a specialized financial institution for the promotion of renewable energy be established in Pakistan. The government should establish model wind power project so that more private investors are willing to take risk in the wind energy market.