ADB is funding for the plant to provide the much-needed additional power, improve energy security and lower reliance on hydrocarbon fuels.
Zorlu Enerji Electrik Uretim will utilize the $36.8 million loan from ADB to install wind turbines to increase the output of its wind farm located 100 kilometers northeast of Karachi, from 6 MW to a total 56.4 megawatts, an ADB report revealed.
“Acute energy shortages caused by low investment are heavily impacting Pakistan’s economic growth very badly,” Michael Barrow said.He is director in ADB’s Private Sector Operations Department.
“This deal should provide a bankable template for future privately funded wind projects, and send a signal that Pakistan’s wind sector is attractive for private sector investment and financing.”, he remarked.
Pakistan relies heavily on imported fossil fuels for the bulk of its energy needs. However, this is costly, puts a heavy burden on its foreign exchange reserves, and leaves it vulnerable to supply disruptions and global price fluctuations, the report added.
The report said,” investment in new capacity has lagged, whereas demand has surged by over 40% over past five years, resulting in regular brownouts in all major urban centres and the introduction of power rationing.