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Investment Opportunities (targets, Incentives, proposed areas of collaboration)


As part of Energy Security Action plan 2006, the Honorable President and the Prime Minister of Pakistan have tasked the Alternative Energy Development Board to have share of at least 5% of total National On-Grid Power generation capacity through wind energy by year 2030. AEDB is developing investment friendly opportunities and several fast track regimes for wind power project to meet the targets. In order to harness the wind potential in Pakistan, AEDB is working to explore the wind power projects in other parts of the country.

Incentive by Government for Wind Power Project Development in Pakistan

Government of Pakistan's "Policy for Development of Renewable Energy for Power Generation" offers the following incentives for setting up Wind IPPs:

  • Wind Risk (risk of variability of wind speed).
  • Guaranteed Electricity Purchase.
  • Grid provision is the responsibility of the purchaser
  • Protection against political risk.
  • Attractive Tariff (Cost plus 17% ROE), indexed to inflation & exchange rate variation (Rupee / Dollar).
  • Euro / Dollar Parity allowed.
  • Carbon Credits available.
  • No Import Duties on Equipment.
  • Exemption on Income Tax / Withholding Tax and Sales Tax.
  • Repatriation of Equity along with dividends freely allowed.
  • Permission to issue corporate registered bonds.

NEPRA has announced an upfront tariff of US Cents 13.52 per kWh (levelized) dated April 24, 2013 for Wind Power Projects. Details are available on NEPRA's Website.

Proposed Areas of Collaboration for Investment in Pakistan:

  1. Direct Foreign Investment (DFI): Participation of companies in development of ARE Power Projects through DFI. Government of Pakistan shall provide full facilitation through AEDB.
  2. Financing / Lending for Commercial Wind Power Projects: Banks and financing institutions may finance the commercial projects through debt and equity sharing.
  3. Export Credit: To promote equipment Governments may give export credit to its OEMs.
  4. Capacity Building/Technical Assistance: Support in capacity building and technical assistance of public entities /organizations of Pakistan associated with Renewable energy sector.
  5. Collaboration in Wind Turbine Manufacturing: Collaboration with Pakistani engineering industries for manufacturing/assembling of ARE equipment/components in Pakistan.

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