Summary

The market for wind energy in Pakistan is expected to grow at a CAGR of more than 5% in the forecast period of 2020-2025. Factors such as supportive government policies and efforts to meet power demand using renewables to decrease dependency on fossils are expected to be significant contributors to the growth of the market. The declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. On the other hand, because of the significant scale of dependency on fossil fuel-based power generation, very less development in the renewable energy sector in Pakistan, and limited power capacity by variable renewable energy sources, there can be a negative impact on the growth of wind energy.

Key Highlights
Wind energy has an enormous potential in Pakistan. Because of this, Pakistan has shown a CAGR of more than 40% from 2014-2018, in terms of installation capacity of wind energy, resulting in more than 1000 MW of operational wind farms in 2019.
The government of Pakistan is aiming to achieve 6% of its electricity generation from renewables by 2030, excluding hydroelectricity, which was estimated at 3% in 2018. Solar and wind are going to be the major markets in the coming years.
In 2019, the Alternative Energy Development Board of Pakistan accorded approval for 11 different wind projects collectively comprising more than 500 MW, which are estimated to be operational in the forecast period, driving the wind market of Pakistan.


Key Market Trends

Increasing Deployment of Wind Farms


Because of its geographical advantage, Pakistan has a tremendous potential of more than 132 GW of wind energy, according to the United States Agency for International Development and the National Renewable Energy Laboratory, which creates a huge possible market in the future.
In 2019, Pakistan has 1186 MW of operational wind installation that generated more than 1.7 TWh of electricity. With this much generation, wind contributed by 6% in renewable electricity by the end of 2018.
In 2018, GE Renewable Energy and Hawa Energy (Pvt) Ltd inaugurated a 50-MW wind park in Pakistan known as the Hawa Power Project, consisting of 29 units of GE’s 1.7-103 wind turbines with a capacity of supplying power to over 20,000 homes.
The major success of Pakistan’s growth in wind energy lies due to favorable winds in Jhimpir-Gharo Corridor. With the majority of the wind installations in this region along with the first wind plant of Pakistan, this region still holds the potential for the growth of the wind market.
The massive growth of wind in period 2015-2018 and upcoming ambitious projects shows the commitment of Pakistan to embrace wind energy at larger scale in the forecast period.


Upcoming Projects And Government’s Policies


With Sapphire Wind Farm project, capacity of 50 MW, Pakistan is going to introduce Feed in Tariff for the first time with involvement of National Electric Power Regulatory Authority. This will encourage the growth of wind energy acceptance in Pakistan.
To boost the manufacturing of wind and solar equipment in Pakistan, the government is also planning to propose five-year tax exemption for the manufacturers. This will help increase renewable share significantly.Even the levelised power tariffs for wind energy is minimum.
The Government of Pakistan has tasked the Alternative Energy Development Board of Pakistan (AEDB) to ensure 6% of total national power generation capacity to be generated through renewable energy technologies by the year 2030.
With 11 separate wind projects approved by AEDB, comprising a collective capacity of 560 MW , a rapid growth in the wind market of Pakistan is expected in the forecast period
The upcoming projects and visionary policies of the Pakistan government are expected to drive Pakistan towards a global leader in wind energy.


Competitive Landscape

The Pakistan wind energy market is partially fragmented. Some of the major companies include Vestas Wind Systems A/S., China Three Gorges Corp, General Electric Company, Goldwind International Holdings Ltd., United Energy Group Limited, and others

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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