LOCATION:
Jhimpir , Pakistan

OWNER/DEVELOPER:
Jhimpir Power Limited (JPL).

INSTALLATION TYPE:
Wind

STATUS:
Operational

COMMERCIAL OPERATION DATE:
March 16, 2018

PROJECT SIZE:
50 MW

LAND AREA:
1,240 Hectares

AVERAGE WIND SPEED:
7.1 meters/second

PROJECT COORDINATES:

Longitude (East) 68° 0’26.29″

Latitude (North) 25° 9’49.88″

FEASIBILITY105%
PERMITTING105%
FINANCING105%
CONSTRUCTION105%
OPERATION105%

Project Overview

Jhimpir Power Limited (JPL) is 50 MW wind farm located in Jhimpir, Sindh Pakistan and is the second addition to JCM’s Asian platform. JPL was developed by Burj Capital while JCM initiated majority acquisition in 2019 and completed all regulatory approvals in Jan 2021.

The project achieved commercial operations in Q1 2018. DFC, the U.S. International Development Finance Corporation, has provided debt financing for the project. In addition to the JPL wind farm, JCM is also exploring the development of other power projects in Pakistan as part of its Asian platform.

KEY MILESTONES

KEY MILESTONES

  • Letter of Intent was issued by Alternative Energy Development Board (AEDB) in Nov 2013
  • Leasehold rights to the 1240 Acres of land were granted in Nov 2013 by the Land Utilization Department, Government of Sindh for a term of thirty (30) years
  • Tariff: Feed-in Tariff was awarded of US cents 10.448/kWh levelized in August 2015
  • Energy Purchase Agreement was executed in March 2015 and amended in July 2016
  • Initial Environmental Examination (IEE): Jan 2015
  • Sovereign Guarantee: August 2016
  • Financial Close (FC): November 2016
  • Commercial Operation Date (COD): Project achieved COD on March 16 2018

MARKET OVERVIEW

Pakistan has posted a GDP growth rate of 5.8% for the fiscal year 2017‐18, as the economy expanded to $313 billion in GDP. This is the highest growth rate in 13 years owing to improved electricity supply, sharp increase in China‐Pakistan Economic Corridor (CPEC) related investment and strong local credit growth.

Currently, Pakistan’s installed electricity generation capacity stands at ~26 GW while peak demand was 31 GW in July 2017. In order to revitalize the power sector, more than 60% of the ~$60 billion of CPEC funding has been allocated to the power sector. Approximately 10% has already been invested in multiple power projects across the country. As a result, electricity generation has started shifting from expensive and inefficient oil‐based power plants, to more efficient Regasified LNG (RLNG), wind, solar, hydro and coal‐based power plants.

The renewable energy landscape in Pakistan is quickly changing as Renewable IPPs now have to move away from Feed‐in‐Tariffs to Cost Plus/Competitive bidding regime as the initial market risk has been subsidized by the 1200 MWs of wind and 400 MWs of Solar IPPs that have been selling power to National Grid under long term PPAs. Furthermore, the power market regulator has been actively proposing changes in tariff structure to go from a single buyer model to multiple buyer model to open the electricity markets for investors and make electricity a freely tradeable commodity. These changes are expected to be implemented within 2 years which will expedite the move towards corporate PPAs.

The average levelized cost of electricity (LCOE) for ~13 wind PPAs that are to be executed in 2018‐19 is expected to be ~6.2 cents/KWh while LCOE for 5 solar PPAs is expected to be ~5.5 cents/KWh.

JCM is actively looking to acquire and develop a pipeline of 200‐250 MW of wind & solar IPPs in Pakistan at different stages of development by leveraging its experience of owning and operating 2 50 MW wind farms in Jhimpir, Pakistan and ability to secure competitive financing to lower its cost of capital.