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2
dear
readers
Welcome to the second edition of The Energy Insight Magazine! Pakistan is a developing country. It is a land that is blessed
with a unique geographic and economic significance as it counts among its neighbours China and the Russian Federation. This
means Pakistans has access to the six Muslim Central Asian States through land-locked Afghanistan. With a vibrant port that
is a gateway to Europe and rest of the world, Pakistan is primed to grow exponentially. However, despite the strategic economic
placement of the country, the biggest factor that has been hampering the growth and profitability of industry in the country is
the lack of energy required to power
In the past five years, Pakistans energy consumption rate has grown at 4.8% annually, but it is postulated to grow at a rate of
around 8-10 percent per annum by the end of this decade. Fortunately, Pakistan is blessed with abundant energy resources, and
in order to achieve optimum energy utilisation, local and private institutions have planned out an institutionalised strategy. The
government has taken measures to achieve exploration of indigenous resources for achieving maximum utilisation to generate
power. But instead of focusing on traditional energy resources including fossil fuel, with its fluctuating prices, the government of
Pakistan has laid down more emphasis on the generation of hydel-power. It has allocated Rs. 61 billion for the Neelum-Jhelum
Hydropower Plant, Rs. 32 billion for the Diamer-Bhasha Dam, Rs. 16.5 billion for extension of Tarbela Dam and 42 billion rupees
for the Dassu Power Project in Kohistan in the new budget. Furthermore, the government has emphasised on new technology
to expedite the development of these projects in order to make them operational. For instance, in the Neelum-Jhelum project,
the government imported tunnel-building machines that will expedite the development of an 18-mile tunnel that will link the
Neelum and Jhelum rivers, which is expected to produce almost 1,000 MW.
In addition to this, more importance is being given to the Western route of the CPEC (China-Pakistan Economic Corridor) for
construction of energy plants. The budget focuses on the power generation and infrastructure developments in Pakistan which
shows the energy sector is progressing at a steady growth. On the other hand, countries like Germany, Norway, China, U.A.E.,
Singapore and Saudi Arabia are channeling foreign direct investment (FDI) into Pakistan by contributing to various energy
projects.
During the last three years, the Government of Pakistan has generated 2,665 MW of more electricity in the existing system to meet
residential and industrial demand of power. Meanwhile, there has been a slowdown in refining operations and constructions in oil
and gas industry as there is a tangible shift in demand towards renewable energy which is more cost-effective and environment-
friendly. The greatest threat to this trend remains energy shortage, as annual energy shortfall tends to hover around the 5,000
MW mark. Adding to this situation is lower oil prices, increase of imports of generators, increase in the sale of vehicles and
shortage of CNG. It is undoubtedly true that the shift towards alternate energy is mainly because of the cheaper source but the
declining trend of oil prices has increased its usage in the transportation sector.
From the editorial side, this issue focuses on Renewable Energy options for sustainable growth and innovation, discussing
the multitude of ways of generating energy from renewable resources. The developments of solar plants and wind mills have
facilitated greatly in bridging the power shortfall in various sectors. The government has also set up major projects in both solar
and wind power, like the multi-million Quaid-e-Azam Solar Park in Bahawlpur, as well as facilitating FDI with the Turkish-firm
developed Jhimpir Wind Power Plant in Sindh. Such projects as well as the multitude of government-supported power projects
are not only going to address Pakistans energy problem but also provide much needed impetus to the economy, creating jobs and
value as Adam Smiths invisible hand goes to work. There have also been technological developments in the renewable energy
sector, with effective usage of bio mass for power generation gaining ground in Pakistan.
We trust you will find this issue informative. We would also like express gratitude to our readers, advertisers and subscribers for
their appreciation and support.

Happy reading!

Our Team

3
said authorities had completed three hydel energy projects providing
Local News

57 megawatts of energy to the national grid.


At the same time, five more projects generating an estimated 214
megawatts would be completed by 2019.
Atif went on to say that the department planned 21 long term projects
which would generate 3,631 megawatts energy and would cost
around $12 billion. Since the government does not have enough
funds to finance these projects, it is trying to bring in private investors
for the execution. Ayub, meanwhile, said that a feasibility study of
18 projects had been completed and the government had floated
international tenders for six projects to invite private investors. He
added the projects were at a prequalification stage and would generate
ADB ready to support Pakistan in energy 666 megawatts of electricity.
shortages Source: Pakistan Today
The visiting Vice President of Asian Development Bank (ADB)
Wencai Zhang said that his bank is ready to support Pakistan in
overcoming its energy shortages. However, Pakistan government
has not formally requested for any assistance for the construction of
Diamir Bhasha Dam project, he told a press conference at the ADB
office.
He said that energy was an important sector for Pakistans economy
and added that the bank would extend support in this sector to help
the country overcoming the energy shortages.
The vice president stressed the need for diversifying energy sector
through exploiting renewable energy including solar, coal, gas and
thermal to overcome the energy shortages in the country. He said
that the government has achieved a GDP growth of 4.7 per cent. He
expressed the hope that Pakistan has potential to enhance its growth
to 7 per cent or even more.
Highlighting the importance of private sector, the vice president said
Sindh Govt. allocates Rs. 6.35 billion for
that private sector can play vital role in the growth of sustainable Energy Sector
economic development. However, he said this requires leveraging The Sindh government has allocated Rs. 6.35 billion for the energy
of private sector for industrialization, job creation and economic
sector under its Annual Development Plan (ADP) for fiscal year
growth. He called for diversifying economy for making the industry
more competitive and for prosperity of the country. The ADB vice 2016-17. Sindh Finance Minister Murad Ali Shah, while presenting
president further said that China progress by promoting special the provincial budget for 2016-17 announced that the provincial
economic zones (SEZs) by incentivizing the investors in the zones government would start different projects with the help of these funds
and that Pakistan could also achieve progress and prosperity by in order to generate energy from both renewable and non-renewable
promoting SEZs in different parts of the country. sources.
Source: Pak Tribune He revealed that the province had framed the Sindh Power Policy to
attract private-sector investment. However, in case the private sector
does not take interest or initiative to develop energy projects, the
provincial government would execute the strategic projects.
One of the greatest news of the current financial year is the
achievement of financial close for Sindh Engro Coal Mining
Company, said Murad Ali Shah.
The company is a joint venture formed in 2009 by the Sindh
government and Engro Corporation to develop the Thar coal block-II.
The provincial government holds 54 per cent shares in the company
and has pledged Rs. 11 billion in equity share.
It has been allocating billions of rupees every year for Thar coal
projects terming them the future of energy security in Pakistan.
According to Shah, the first project of Thar coal is expected to
generate 660 megawatts of electricity by 2018, which will be
increased to 1320 MW. Analysts say Engro is increasing its stake in
the energy sector, especially in Thar coal projects, by divesting from
other sectors.
KP to generate 1,000 megawatts of energy Moreover, 46 wind power projects with a capacity of 3550 MW are
The Khyber Pakhtunkhwa energy and power department claimed it at various stages of development. Total investment in the wind power
will generate up to 1,000 megawatts of energy in the coming three to projects stands approximately at $5.37 billion. The government
four years by completing hydel power projects and a 100 megawatts of Sindh has also planned 24 solar power projects that will add
solar energy project. 1,450MW to the national grid and would bring total investment of
$2.9 billion, Murad Ali Shah said.
Minister for Energy and Power Atif Khan and Pakhtunkhwa Energy
Source: Pakistan Observer
Development Organization (PEDO) Chief Executive Akbar Ayub

4
Germany, Pakistan to enhance cooperation
in renewable energy Italian businessmen keen to invest in
A high profile German delegation, led by Ministry for Economic Pakistans energy sector
Cooperation and Development (BMZ) Afghanistan/Pakistan Division Italian businessmen are keen to make investments in Pakistans
head Dr Stefan Oswald, visited the secretariat of the Pakistan-German energy sector besides having joint ventures in other fields.
Renewable Energy Forum (PGREF) to meet with the representatives This was stated by the Pakistan Ambassador to Italy Nadeem Riaz
of Energy Department. Dr Oswald inaugurated the first secretariat of while speaking at the Lahore Chamber of Commerce & Industry.
PGREF at the premises of the department. LCCI former Presidents Tariq Hameed, Mian Misbahur Rehman,
PGREF is an initiative between the Pakistan and Germany supported Farooq Iftikhar, Mian Muzaffar Ali, Ijaz A. Mumtaz, Executive
Committee Members Rizwan Shamsi, Khadim Hussain and
by Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ)
Provincial Secretary Transport Javaid Akbar Bhatti were prominent
on behalf of the German Ministry for Economic Cooperation and among the participants.
Development (BMZ) to create a network between their respective
industries, public sectors and innovation networks in the renewable The ambassador said that there is a huge business potential in the
two countries that should be tapped. He urged the LCCI to constitute
energy (RE) and energy efficiency field.
a sector specific business delegation for Italy to explore trade &
Source: Daily Times investment opportunities. He said that the information of delegation
should be provided to the Pakistani mission in Italy at least two
months ahead of time so that B2B meetings could be arranged with
their Italian counterparts.
The former LCCI president Farooq Iftikhar said that Pakistan and
Italy should hold sector-wise study to evolve a comprehensive joint
strategy to enhance volume of trade between the two countries.
Farooq Iftikhar said that the climate for foreign investors in Pakistan
is so conducive that they could now have 100 per cent equity and
there are no restrictions on remitting dividend, profits, fee etc. Cost
of doing business in Pakistan has also decreased owing to low interest
rates and availability of cost effective labour force.
Source: Daily Times

Rs. 410 bn reserved for Energy Projects in


Budget 2016-17
The government has reserved Rs. 410 billion for energy projects
in the financial year 2016-17. The government has reserved Rs. 60
billion for three Liquefied Natural Gas-fired plants, Rs. 61 billion for UAE, Saudi Arabia lead FDI revival in
Neelum Jhelum hydro-power project while Rs. 42 billion for Dasu Pakistan
power project. The UAE and Saudi Arabia are following in Chinas footsteps in
In experts opinion, the government needs to upgrade transmission channelling foreign direct investment (FDI) into Pakistan. A major
lines besides expanding power production. According to authorities chunk of these investments are going into energy projects. As these
at planning commission, there are sufficient funds for power projects energy projects go on stream, they will have a multiplier effect on
in the upcoming fiscal year. However, projects budding from China- the Pakistan economy. Over several years, the whole country and the
Pakistan Economic Corridor are separate. economy in particular was badly hit by energy shortages. World Bank
Timely completion of different energy projects will help limit the estimates show that prolonged outages of electricity and natural gas
shortage and curb energy crisis. Furthermore the government has supplies to major industrial units in Pakistan had eroded the economy
set aside Rs. 16 billion for Tarbela Fourth Extension Hydro Power by a reduction of up to two per cent in the annual gross domestic
Project while recommendation of spending Rs. 22 billion on product (GDP).
Chashma Nuclear Project III and IV has been tabled by the authorities The State Bank of Pakistan (SBP), the central bank, reported that FDI
concerned. Rs. 31 billion have reportedly been reserved for the Water into Pakistan rose by 4.8 per cent during July-February period of the
and Power division, Rs. 32 billion for Diamer-Bhasha Dam, Rs. 22 current fy-2016. The net FDI inflow during these eight months was
billion for Chashma coal project and Rs. 2 billion for Gomal Zam $750.9 million as compared to $716.2 million in the corresponding
Dam. period of fy-2015. The gross inflow of FDI during this period was
Source: Pakistan Observer $1.3 billion, while the outflow was $583 million, the central bank

5
said. The outflows mainly comprised repatriation of dividends and units (mmbtu) but the consumers coming under the first slab were
Local News

profits earned by foreign investors. The UAE came second only to receiving it at Rs. 110 per mmbtu.
China, with an investment of $111 million. Saudi Arabia committed Eighty-five per cent of domestic consumers were paying less than
$105 million and Hong Kong $101 million during the July-February 50% of the cost of gas and the industrial and commercial consumers
fy-2016, the SBP said. were cross-subsiding the domestic consumers, he said. However, now
Ahsan Iqbal, minister for planning, development and reforms, who industrial and commercial consumers were being provided imported
is also the key person on the China-Pakistan Economic Corridor liquefied natural gas (LNG), so the burden of cross-subsidy had been
(CPEC) projects, informed Parliament that out of the total Chinese shifted to SNGPL that was feeling the strain on its finances. Though
funding of $46 billion, $35 billion are commercial loans which will the gas production was declining, Latif told the committee that the
be invested in Pakistan by the Chinese private sector. The remaining company would lay pipelines over 8,000 km in the current year. At
$11 billion are concessional loans. present, 1.5 million applications for new gas connections are awaiting
Khawja Asif, minister for water and power, said: More energy is the approval of the company.
key to solve our economic problems. I am glad to see that a major part Source: Express Tribune
of the new FDI will go into generating electricity. Besides China,
other foreign investors from the UAE and Saudi Arabia have also
committed to invest in energy projects, finance minister Ishaq Dar MOL Makes Oil, Gas Discoveries in Pakistan
said.
MOL Pakistan Oil and Gas Company B.V and joint venture partner
Our growing energy demand has made Pakistan a big emerging Oil and Gas Development Company Limited (OGDCL) have made
investment destination. The investors are topped by Chinese two new onshore discoveries in Pakistans Tal Block.
multinationals, generating power and doing infrastructure
The Talonj West-1 exploration well, which reached a total depth of
development, Prof Iqbal said. China, the biggest investor, has
16,210 feet on April 24, flowed 13.1 million cubic feet per day of gas
invested $447.8 million during July-February fy-2016. It invested
through a 32/64 choke during testing of the Lumshiwal Formation.
$200 million in fy-2015. The SBP reports that capital investment
Testing operations are still in progress at the well to ascertain the true
in Pakistan included $362.2 million in the energy sector during the
potential of the discovery.
first eight months of fy-2016. Investment in oil and gas exploration
totalled $214 million. Beverages attracted $57.8 million. Foreign The Makori Deep-1 exploration well reached a total depth of 16,624
investment into coal-fired energy projects was $240.3 million. feet on April 17 and logged an output rate of 2,020 barrels of oil per
day and 5.4 million cubic feet of gas per day during testing of the
Source: Source: Khaleej Times
Lockhart-1 formation. This discovery will help to mitigate the energy
crisis in Pakistan, according to a company statement.
Tal Block is operated by MOL Pakistan Oil and Gas Company
B.V. OGDCL, Pakistan Petroleum Limited (PPL), Pakistan Oilfield
Limited (POL), and Government Holdings Private Limited (GHPL)
are joint venture partners in the block.
Source: Web Research

Azerbaijan and Pakistan agree on supply of


oil and gas out of exchanges
Azerbaijan and Pakistan have signed a range of intergovernmental
agreements on cooperation in the fuel & energy sector, within the
Islamabad meeting of the bilateral intergovernmental commission.
Pakistans oil and gas discoveries touch The Pakistani media report that the agreements relate to the supply of
record crude oil and petroleum products, and liquefied petroleum and natural
Pakistan has made the highest number of oil and gas discoveries in gas (LNG), and enable the two countries to sign agreements on the
the current month as exploration companies found fresh hydrocarbon exchange of oil and gas, bypassing the process of exchange trading.
deposits in six wells that will add 50.1 million cubic feet per day Also, the Memorandum of Understanding between the State Oil
(mmcfd) of gas and 2,359 barrels per day (bpd) of oil to the existing Company of Azerbaijan (SOCAR) and Pakistan State Oil was signed.
production levels. Of these, major discoveries have been made in The parties agreed on joint research on creation of laboratories and
Sindh that already has a big share in total gas output in the country. carrying out production testing in oil and gas, as well as on the exchange
Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, of scientific and technical developments in the field of exploration
while speaking during a meeting of the National Assembly Standing and production of oil and gas and training of professionals for the oil
Committee on Petroleum and Natural Resources chaired by Bilal industry. Azerbaijan and Pakistan have decided to assess jointly the
Ahmed Virk, said four discoveries were made in Sindh and the possibility of cooperation in projects for exploration and production
remaining two in Khyber-Pakhtunkhwa. of oil and gas in Azerbaijan and Pakistan, and create in this regard a
joint working group on exploration and production of hydrocarbons.
Of these, Oil and Gas Development Company made two finds, MOL
The two countries also covered the possibility of participation of
Pakistan two and Petroleum Exploration Limited and United Energy
Azerbaijani companies in the creation and development of small
Pakistan one each. The discoveries have shown presence of 31.6
hydropower plants, wind, solar and bioenergy projects.
mmcfd of gas and 339 bpd of crude oil in Sindh and 18.5 mmcfd of
gas and 2,020 bpd of oil in K-P. Sui Northern Gas Pipelines Limited Source: Azerbaijan Business Center

(SNGPL) Managing Director Amjad Latif warned that the countrys


gas reserves were depleting and no gas was available for the domestic
consumers in Punjab. He pointed out that the purchasing cost of gas
for domestic consumers stood at Rs. 510 per million British thermal

6
INDUSTRIAL INSIGHT

Facts & Figures


2015 2016
Total Resource Potential 27 Billion Barrels 27 Billion Barrels

Refining Capacity 18.8 Million Tons 18.8 Million Tons

Crude Oil Production 86533 Barrels/Day 87744 Barrels/Day

Oil Imports 5.77 Million Tons 5.97 Million Tons

Consumption 21 Million Tons 22.06 Million Tons

2015 2016
Total Resource Potential 282 TCF 282 TCF

Recoverable Reserves 24 TCF 24 TCF

Production 4000 MMCFD 4073 MMCFD

Industrial Consumers 10814 10834

Commercial Consumers 79358 79560

Domestic Consumers 7240253 7494901

Distribution Networks 136265 114982

Transmission Networks 11155 11538

GAS Pipelines - 31058

7
oil and gas sector] there isnt the same appetite from the west, said
International News
Dolapo Oni, head of energy research for Ecobank in Lagos. Nigeria
has historically been Africas top oil producer, but a fresh bout of
insurgent attacks in the Niger Delta this year has slashed output to
its lowest level in 25 years. The government said that production
had returned to a healthy 1.9m barrels per day, but industry insiders
say that figure seems too high as one of the countrys biggest export
terminals, the Shell-operated Forcados facility remains closed after
an attack. The violence has coincided with the slump in oil prices that
has plunged Nigeria which relies on petrodollars for 90 per cent of its
export earnings into a deepening economic crisis.
U.S. expands Oil and Gas storage facilities Source: Web Research

by 6 percent in six months


The United States expanded its oil storage capacity by 34 million
barrels or six percent, according to the Energy Information
Administrations latest report on the matter. The addition marks
the largest such capacity growth since the EIA began collecting the
data in 2011, Reuters reported. Industry insiders had feared storage
capacities would fail to keep up with the speed of American oil and
gas production.
Low oil prices have led American oil reserves to swell over the
course of the past two years. The 15 percent increase in fuel storage
has pushed crude oil storage utilization levels to a record high of
73 percent. The fires in Alberta, Canada and reduced output in the ExxonMobil Retains Title as Largest Oil and
United States have led crude oil stocks to decrease, spurring a price Gas Company in the World
increase, albeit with limited effect.
The rankings prelude indicates that researchers equally-weighted
The EIAs report, released every six months, said the expansion of measures of revenue, profits, assets and market value in order to
crude storage would help accommodate the growth in U.S. crude name the 25 biggest players in the global energy industry.
oil inventories, which surpassed 500 million barrels at the end of
Exxon became one of only five oil majors to remain a part of the
January 2016. Inventories of the raw product rose in 24 of the 30
Fortune 500 list. The firm took second place overall with earnings at
weeks covered in the report, which highlights the need for larger
$1.8 billion in the second quarter.
facilities. The Gulf Coast region, surrounding the Gulf of Mexico,
saw similarly high utilization rates in their storage sites. Exxons role in shielding the oil and gas industry, particularly in the
Sources: Web Research
United States, from incoming changes due to rising environmental
concerns has been significant.
The New York Attorney General is currently carrying out an
investigation regarding Exxons role in hiding the effects of oil and
gas production and consumption from the public. The company
denies all claims lodged in the case.
PetroChina was the second highest oil major on the list, as it and its
peers suffered severe financial blows due to production costs that ran
from $40 to $60 a barrel in a $50 a barrel global market.
Source: Web Research

Nigeria unveils energy infrastructure deals


with China
Nigeria says it has signed provisional agreements worth $80bn with
Chinese companies to upgrade its oil and gas infrastructure, in a sign
of Beijings willingness to bolster Africas largest economy as it
grapples with its worst economic crisis in decades. The memorandums
of understanding cover all aspects of Nigerias energy sector, from
rehabilitating decaying refineries and building new pipelines to
developing the neglected gas and power sectors, the countrys state
oil company NNPC said in a statement.
The agreements were reached during a visit to Beijing by Emmanuel
Ibe Kachikwu, Nigerias oil minister. NNPC said 38 Chinese
companies were involved in the agreements, including Sinopec,
an oil group, and Norinco, a weapons maker. However, it was not
immediately clear how the deals would be financed and industry
Renewable energy initiative set to become a
observers are waiting to see if the agreements are implemented. reality
Nigeria badly needs investment to boost oil production and improve An ambitious renewable energy initiative, envisaging tapping of
fuel and power supplies for its 180m people. In spite of its oil riches, solar power to irrigate the agriculture fields of tribal farmers in five
the country imports nearly all of its fuel because its rundown refineries remote habitations of India under Bangaru Chelka and Mylaram gram
cannot process crude. panchayats in Kothagudem mandal, is set to become a reality soon. The
Clearly this shows that China is interested [in investing in Nigerias initiative assumes immense significance for the tribal farmers in the

8
two gram panchayats as the project is expected to ensure power supply
to their agriculture fields in a cost-effective and eco-friendly manner.
The renewable energy based project was conceived by the
government agencies concerned at an estimated cost of Rs 1.23
crore in the backdrop of the difficulties involved in providing three-
phase electricity supply to the agriculture fields in the remote tribal
habitations in the conventional mode. The project is expected to
render concrete benefit to more than 250 tribal farmers in the two
gram panchayats. Of the 90 borewells proposed under the project,
around 80 borewells have already been drilled under the aegis of the
District Water Management Agency (DWMA), sources said. East Africa joins global network of energy
Kothagudem MLA Jalagam Venkat Rao has reviewed the progress centres
of the drilling works with the officials concerned recently. With the An East African Centre for Renewable Energy and Energy Efficiency,
drilling works reaching the final stage, the government agencies or EACREEE, has been launched at Makerere University in Uganda
concerned have expedited the process of procuring the solar powered to address energy issues faced by the five East African Community
pumpsets in adherence to the stipulated norms, sources added. nations of Burundi, Kenya, Rwanda, Tanzania and Uganda.
According to sources, the solar powered pumpsets are likely to
be installed under the aegis of the Telangana New and Renewable It joins the Global Network of Regional Sustainable Energy
Energy Development Corporation soon. The project is expected to Centres, coordinated by the United Nations Industrial Development
render concrete benefit to 250 tribal farmers in two gram panchayats. Organization or UNIDO.
Source: Web Research The centres respond to the urgent need for increased regional
cooperation and capacities to mitigate existing barriers to
renewable energy and energy efficiency investment, markets and
industries, UNIDO says. EACREEE has been created by the
East African Community or EAC states with support from the
Austrian Development Agency, UNIDO and the Australian Agency
for International Development, as part of global efforts to make
Sustainable Energy for All a reality in 2030, as per the United Nations
Sustainable Development Goals.
EACREEEs work will contribute particularly to the cross-cutting
areas of the goal on sustainable energy, and the goal on sustainable
industrial development. It will work towards limiting average global
surface temperature increases. The centre is based in Makerere
Jordan Investing Heavily In Renewables Universitys college of engineering, design, art and technology, and
The expansion of Jordans renewable energy segment has seen a operates through a network of national focal institutions among all
marked acceleration in recent years, with nearly 1000 MW of solar East African states.
and wind projects currently being implemented. These developments EACREEEs main aim is to develop and implement a regional
dovetail with a national strategy aimed at raising the share of renewable energy policy framework for the EAC, and facilitate
renewables in the energy mix to 10 percent by 2020, equivalent to a its implementation at national levels to ensure the availability of
generating capacity of some 1500 MW. Development of renewable sufficient, reliable, cost-effective and environmentally friendly
energy sources has become increasingly critical for Jordan in recent energy sources. This will be achieved through innovative partnerships
years, as fuel oil imports and electricity subsidies have led to financial within the region and beyond that will tackle energy, climate and
losses for the state-owned National Electric Power Company development challenges simultaneously.
(NEPCO).
Source: Web Research
Jordan has historically imported around 97 percent of its energy needs
at a cost of close to 18 percent of GDP, according to figures from the
Ministry of Energy and Mineral Resources (MEMR). Central to the
kingdoms efforts is the Green Corridor project, which is aimed at
reducing dependence on hydrocarbons by increasing Jordans ability
to absorb the loads generated by new renewable energy capacity
stemming from wind and solar. The upgrades involve the construction
of two new transmission lines a 400-KV, 150-km line and a 132-
KV, 51-km line as well as upgrades to three existing 132-KV lines
stretching 100 km each. Additionally, a new 1200-MVA electricity
substation will be constructed in northern Maan, while the stations at
Qatraneh and Queen Alia International Airport will also be expanded,
according to local media reports.
Last year saw the $159.7m multi-component project awarded
key funding. Development is being co-financed by the French Croatia signs contracts for onshore oil and
Development Agency, which has issued a $54.9m soft loan; the
European Investment Bank, which is providing $72m worth of
gas exploration blocks
project finance; NEPCO, which has contributed $12.6m in funding; Croatia has signed contracts with a local firm and one Canadian
and the EU Neighbourhood Investment Facility, which has offered a company that had been awarded onshore oil and gas exploration
grant of $20.2m. blocks in the north and east of the country. According to reports,
Zagreb awarded four exploration blocks to Vermilion and one block
Source: Web Research
to INA, whose biggest shareholder is MOL Group.

9
Prime Minister Tihomir Oreskovic said the country had secured Government of India is preparing a separate power trading platform.
International News

investment worth $75million. He said: Croatia needs investments It is to be jointly developed by the Ministry of New and Renewable
and this is a step towards a better investment climate. The exploration Energy (MNRE) and Power Trading Corporation of India (PTC), the
period will last five years and the concession for exploitation will be latter a joint venture of several entities with the government.
valid for 25 years. The envisaged platform would help states buy, sell and trade
Another concession was also awarded to Nigerias Onando Plc with renewable-based power. States with surplus RE generation could
the contract due to be signed. Economy Minister Tomislav Panenic sell and those ones which want to meet their renewable purchase
said he planned to announce another round of tenders for onshore oil obligation (RPO) would get a platform to do so. As mandated
and gas exploration soon. under a national tariff policy, states have to meet part of their energy
Source: Web Research requirement from renewable sources. RPO, launched in 2010, makes
it obligatory for distribution companies, open-access consumers and
captive power producers to meet part of their energy needs through
green energy. During 2015-16, barring a few exceptions, none of the
states has met its RPO, for fifth year in a row.
Senior PTC and MNRE officials said the model was under
development and was likely to include RE certificates. The latter,
launched in 2010, has a problem finding takers. At present, 17.5
million of the 33 million issued are unsold. It is meant for states
which dont want green energy but have to meet their RPO.
India is the fifth largest country globally, in terms of wind power
capacity. In the past decade, RE has grown by 89 per cent, while
hydro has staggered at 28 per cent. The National Democratic Alliance
government has revised the target for renewable energy capacity
addition by five times, to 175,000 Mw by 2022.

India delivering components for largest Source: Web Research

fusion energy project


India has started delivering components for a multi-national project to
build worlds largest fusion device for carbon-free energy in France.
So far we have delivered less than 10 per cent of total components,
said Dheeraj Bora, director of Gandhinagar-based Institute for
Plasma Research (IPR), which is handling the Indian part of the ITER
(International Thermonuclear Experimental Reactor) project.
India has so far earmarked Rs 2,500 crore for the project and IPR has
sought more funds, Bora said at a press conference. The project will
pave the way for a new form of clean energy through processes that
undergo inside the Sun and the stars. It is expected to be ready by
December 2025, he said.
Gulf Power expands wind energy investment
India is supposed to contribute 9 per cent of components, or 15
Gulf Power is expanding its wind energy output. The company filed
packages. Other countries involved in the project are European Union,
a petition asking the Florida Public Service Commission to approve
China, Japan, South Korea, Russia and the US. Private companies
adding 94 megawatts of wind energy from the Kingfisher Wind
such as Larsen & Tubro Hazira, L&T Construction Chennai, INOX
farm in Oklahoma. The diversification of the energy sources that
India Limited Vadodara, Linde India Limited Kolkata and ATL
Northwest Florida customers use to power their homes means less
Bangalore are building components including Cryosat, cooling water
price fluctuations as a result of natural disasters like hurricanes or
systems, vessel in-wall shielding blocks, radio frequency heating
extreme heat or cold.
sources, cryo distribution and cryolines, power supplies, diagnostic
neutral beam system and diagnostic systems. The original Kingfisher Wind project went online in January and
has been producing 178 megawatts of wind-generated energy. Gulf
Source: Web Research
Power is seeking approval of a second agreement of that wind project
that would add 94 megawatts of wind energy to its energy mix, for
a total of 272 megawatts. The Kingfisher Wind project has 136 wind
turbines capable of producing enough energy to power about 77,150
homes for a year. Gulf Power is moving away from coal power and
toward more natural gas and renewable energy sources.
Source: Web Research

Indian renewable energy to soon get a


separate trading platform
With the increasing share of Renewable Energy (RE) in the grid
and the likelihood of it disturbing the existing power systems, the

10
Paving the way to prosperity - AEDB

Personality in Focus
A Dialogue with CEO Alternative Energy Development Board Mr Amjad Ali Awan
entrusted to act as a forum for evaluation, power generation near the load centers
monitoring and certification of renewable and distributed generation using RE
energy projects and products. technologies and both large scale level
and small scale / consumer level in order
Q. Please tell us about your current and to lessen the load on the national grid and
future projects as well as the targets that do away with long distance transmission
you aspire to achieve. network requirements. The use of RE
A. Alternative Energy Development technologies in the domestic sector for
Board (AEDB) has been pursuing power generation and space / water
the development of Alternative and heating is also being promoted.
Renewable Energy (ARE) based power
projects through private investors under Q. How successful is the 26 MW co-
the Renewable Energy (RE) Policy generation power plants at JDW Sugar
2006. The current status of the RE power Mills at Rahim Yar Khan and Ghotki?
generation projects is as follows: A. The framework for Power Co-generation
Six wind power projects of 308.2 MW (Bagasse/Biomass) 2013 was announced
cumulative capacity are operational and by the government in order to utilise the
providing electricity to the grid. Nine available potential for power generation
wind power projects of 479 MW have from the existing sugar mills. The high
achieved financial closing and are under pressure boiler based plants set-up by M/s
Alternative Energy Development Board construction. JDW Sugar Mills at the facilities in Rahim
(AEDB) is the sole representing agency of the One solar project of 100 MW is Yar Khan and Ghotki are the first two
Federal Government that was established in operational and three solar project of 100 projects developed under this framework
May 2003. With its mission being to facilitate, MW capacity each are under construction. and are successfully supplying their spill-
promote and encourage development of Four sugar mill based bagasse co- over electricity to the national grid.
Renewable Energy in Pakistan, it plays generation projects of 142.1 MW capacity
are also operational. Q. Enlighten our readers about the potential
a pivotal role to introduce Alternative
More than 1300 MW capacity wind and of the alternative energy sector of
and Renewable Energies (AREs) at an
solar projects are in the pipeline. Pakistan. How do you see Pakistans
accelerated rate. Amjad A. Awan is the Chief
renewable energy sector to look like in
Executive Officer (CEO) of the Alternative
Q. What are the challenges that you foresee the next five years?
Energy Development Board (AEDB).
in the energy industry? A. Pakistan has an immense alternative and
Armed with a vast professional experience
A. The energy sector faces several renewable energy potential comprising of
of working in diverse leadership positions
challenges which include development wind, solar, biomass and hydro resources.
for the government and private sectors, he
of grid infrastructure for the future power The large scale wind and solar power
has been trained from esteemed academic
generation projects, up-gradation of the projects can easily contribute up to 10-
institutions including Massachusetts Institute
existing transmission and distribution 15% share in the energy mix of the country.
of Technology MIT, Harvard University
network, demand side management Small /mini/micro hydro has a potential
(USA) as well as Universities of Lancaster
and arranging financing for power of more than 3000 MW, especially in
and Birmingham (UK). A qualified Electrical
projects and grid infrastructure. The the northern areas. High pressure boiler
Engineer and an MBA, he has specialised
increasing demand of natural gas for based bagasse co-generation from
in energy, infrastructure and institutional
power generation and domestic sector sugar mills has the potential of about
development matters and brings to the table
requirements and depleting reserves is 15002000 MW. Apart from large scale
a multi-faceted skill base in the technical,
also a crucial challenge. power generation projects, small scale
management and policy spheres. He was
applications such as solar systems in
recently kind enough to grant time to The Q. What strategies have the AEDB devised the domestic, industrial and commercial
Energy Insight team and discuss AEDBs to cope up with the above challenges sectors and village electrification using
role in detail. Here is what he had to share: facing Pakistans energy sector? renewable energy technologies will play
A. AEDB is promoting optimal use of an important role in demand side power
Q. What is the role of AEDB in Pakistans
renewable energy technologies for management.
energy sector? How is it facilitating
renewable energy projects?
A. AEDB is an autonomous government
body with the mandate to promote
and facilitate utilisation and usage
of renewable energy resources in the
Pakistan has an immense alternative and
country. It is also mandated to develop renewable energy potential comprising
national strategies, policies and plans for
utilisation and promotion of alternate and
of wind, solar, biomass and hydro
renewable energy. AEDB coordinates resources
and facilitates commercial application
of renewable energy technologies along
with assisting private investors. It is also

11
Events News

ADIPEC 2016 Now Host of Worlds


Largest Oil and Gas Technical Conference
Programme
Landmark Energy Event Continues Record-Breaking Success with 2,775 Proposals from
571 Organisations in 71 Countries
Achievement Represents an Impressive 22% Year-on-Year Increase in Number of
Abstract Submissions

Global industry leaders, experts, and decision makers are gearing from the worlds leading national and international oil companies and
up for what is anticipated to be the largest Abu Dhabi International service companies, and key decision makers from across the industry.
Petroleum Exhibition and Conference (ADIPEC) yet as organisers Mr Ali Khalifa Al Shamsi, CEO of Al Yasat Petroleum Operations
reveal another milestone for the worlds most influential oil and gas Company and ADIPEC 2016 Chairman, said: Energy plays a central
event. The distinguished ADIPEC Technical Conference Programme role in the development of the economy, and with global demand
received a total of 2,775 proposals for this years edition of the set to increase by one-third over the next two decades, there is a
event, marking a 22 per cent increase from last year, and once again pressing need to create long-term strategies that promote safe and
breaking all known records for the number of submitted abstracts in reliable access to energy. The high-level academic discussions that
the oil and gas industry. will take place during the ADIPEC Conference Programme have the
Technical papers came from 571 organisations across 71 countries, potential to shape policies that will pave the way to a sustainable
with more than half of submissions from outside the Middle East, energy future.
underlining ADIPECs expanding international reach and its The overall theme for this years conference is Strategies for the
worldwide recognition as the global meeting place for knowledge- New Energy Landscape, and the event will explore regional and
exchange in the energy sector. It is anticipated that this years edition global views, with more than 700 speakers and 8,500 delegates from
of ADIPEC will be the largest event to date. The ADIPEC 2016 both technical and non-technical functions within the oil and gas
technical committee, which is comprised of 140 industry leading industry.
experts, convened on 22nd May, where 717 quality abstracts were Christopher Hudson, President dmg events, Global Energy, said:
selected following a thorough and rigorous selection process across The ADIPEC Conference Programme addresses all the different
ten technical categories, representing an acceptance rate of nearly specialties and sub-specialties in the energy sector, enabling
26%. industry professionals to acquire valuable information for every
Sharing industry best practice, knowledge, research, and innovation aspect of their business. The growing international participation
has never been more important and critical to the industry than it is in this comprehensive forum is testimony to the markets thirst for
today, said Mr. Fareed Abdulla, Senior Vice President North East knowledge that will allow organisations to thrive in todays dynamic
Bab (NEB) Asset at the Abu Dhabi Company for Onshore Petroleum business environment.
Operations Ltd. (ADCO), ADIPEC 2016 Technical Conference The 2016 edition of the ADIPEC Conference Programme will feature
Chairman, and SPE Middle East Board Chairman. 2 Ministerial Sessions, 3 Global Business Leader Sessions, 8 Panel
The energy sector is currently witnessing a transformation marked Sessions, 5 VIP Briefings within the Middle East Petroleum Club, 3
by a special focus on efficiency, and stakeholders recognise they Breakfast Sessions, and 3 Luncheon Sessions that will tackle some of
need to adapt both their business strategies and on-the-ground the most imminent topics in the energy sector.
implementation to survive. Every year, we not only see an increase Taking place in a purpose-built waterside theatre, 8 Offshore and
in the number of submissions, but also in the quality of papers we Marine sessions will look at industry-specific topics ranging from
receive making the ADIPEC Conference Programme truly the go-to developing offshore oil and gas fields to new technologies and
event for the latest developments in the world of oil and gas. enhancing safety.
Held under the patronage of His Highness Sheikh Khalifa Bin Zayed ADIPECs acclaimed Women in Energy conference will also be
Al Nahyan, President of the UAE, ADIPEC 2016 will take place back this year to address the challenges and opportunities for women
from 7-10 November, and is hosted by the Abu Dhabi National Oil professionals in the industry.
Company (ADNOC), organised by dmg events Global Energy, and
supported by the UAE Ministry of Energy. The technical categories that will be covered within the ADIPEC
2016 Conference Programme are: E&P Geoscience, Unconventional
The ADIPEC Technical Conference Programme, organised by the Resources, Field Development, Drilling and Completion Technology,
Society of Petroleum Engineers (SPE), is now one of the largest Projects Engineering and Management, Operational Excellence and
events focusing on the energy sector, attracting technical engineers HSE, Gas Technology, Offshore and Marine, and People and Talent.

12
Pakistan Power & Renewable Energy
Investment Conference

Euroconvention Global organized Pakistan Power & Renewable energys technology have generated a record investment in just one
Energy Investment Conference on May 18 - 19, 2016 in Islamabad year, revealing the interest of investors in this sector. Foreign investors
Pakistan. The conference hosted eminent personalities from public poured over $3 billion into the renewable energy sector in Pakistan
and private sector stakeholders that enlightened the participants over the last year. The Alternative Energy Development Board stated
about the potential of renewable energy infrastructure in Pakistan and that letters of interest have been issued for 25 solar power projects
opportunities available for the investment with the local companies. representing 663 MW of cumulative capacity. All these projects are
The Renewable Energy Business Conference aimed at bringing expected to be commissioned by 2018. The provincial government
various dignitaries on one platform and let them discuss the Business of Punjab has also issued letters of intent for 600 MW of solar
and commerce related contingencies of the regulatory framework of power capacity. The National Electric Power Regulatory Authority
alternative energy resources. of Pakistan has presented earlier this year its 2016 solar feed in
The Business Conference was honoured by Jean-Francios Cautain, tariff scheme and IFC has launched a guidebook for solar project
Ambassador, Delegation of EU to Pakistan, Werner Liepach, Country development in the country.
Director, Asian Development Bank, Pakistan and Ross E. Hagan, At the end of the conference all the speakers and participants expressed
Director, Office of Energy, USAID Pakistan. that the authorities should have focus on the ease of regulations in
Prominent professionals from different public and private sectors order to attract the investment from international and local firms.
conducted the session at the two day business conference and
highlighted that the promotion and development of renewable

Saudi Power 2016 Humoud Al-Ghubaini Senior Vice President, Communications and
Public Relations, Saudi Electricity Company, said: Sponsoring
the Saudi Power Exhibition 2016, comes in line with the Saudi
Electricity Companys efforts to nationalize the electrical industries
in the Kingdom. This show is the ideal platform to showcase the
development of the local energy sector, explore the latest related
techniques, study the projects within the power sector, and support
the growth of local companies through reducing the consumption and
waste of energy.
Abdullah Alkhorayef, CEO, Alkhorayef Commercial Company,
said: We are participating in this leading exhibition to announce
for the first time in Saudi Arabia, a medium voltage Gulfpower
diesel generator set has been assembled locally in cooperation with
Cummins, in addition to showcasing our most prominent services
offered in the field of energy solutions for an audience of specialized
professionals.
Saudi Power exhibition took place from 9-11 May, 2017 at Riyadh Saudi Power 2016, organized by Riyadh Exhibitions Company in
International Convention & Exhibition Center. Dr. Saleh Bin Hussein collaboration with Informa Company, aims at raising the awareness
Al Awaji inaugurated the Saudi Power 2016 exhibition organized level of the energy users, through introducing the latest related
by Riyadh Exhibitions Company in collaboration with Informa products and services, highlighting the electricity sector in the
Company. The show brings together more than 220 exhibitors from Kingdom and discussing potential solutions and strategic projects.
19 countries and has witnessed a remarkable increase of 43% in This edition witnessed the participation of more than 200 local and
visitor numbers, bringing the total number to more than 5000 visitors. international companies showcasing the latest power solutions,
services and supplies.
On the sidelines of the exhibition, Prince Saud Al-Abdullah Al-Faisal
bin Abdulaziz, Chairman of Riyadh Exhibitions Co, said the Saudi Saudi Aircon, the partner event to Saudi Power, is the leading
Power exhibition is a dedicated platform for all specialized companies exhibition in the Middle East region for HVAC & refrigeration.
operating in this sector, it attracts hundreds of local and international Saudi Aircon showcases the latest equipment, technology and
companies seeking to further position themselves in the Saudi market innovative solutions for the heating, ventilation, air-conditioning and
and showcase the latest products, services and technologies. The refrigeration industries. Demand for indoor cooling is growing rapidly
exhibition also provides an opportunity to close business deals, thus in Saudi Arabia due to high population growth, rising affluence and
supporting the development of the power and HVAC sector in the numerous mega projects currently under construction.
Kingdom.

13
Exclusive Coverage

POGEE - Post Show Report


Opening Ceremony Conference Highlights
Opening ceremony of POGEE 2016 was graced by Mr. Sher Ali 12th International Conference for Oil, Gas & Energy
Khan - Minister for Mines & Minerals, Government of Punjab, Industry was held on 21st May 2016 at the Expo Centre
and also joined by Ms. Iffat Farooq - Additional Secretary Energy, Lahore and was based on the theme Designing A
Government of Punjab, Mr. Amjad Ali Awan - Chief Executive Sustainable Energy Mix
Officer, Alternative Energy Development Board (AEDB) - Ministry
of Water & Power GOP, Mr. Shah Jahan Mirza - Managing Director, Conference featured two exclusive sessions on the themes
Private Power & Infrastructure Board (PPIB) - Ministry of Water Energy Sector Reform: Prospect & Challenges and Coal
& Power GOP. The Conference was opened by Mr. Shahid Khaqan & Indigenous Renewable Resources
Abbasi - Federal Minister for Petroleum and Natural Resources,
Mr. Shahid Khaqan Abbasi, Federal Minister for Petroleum
Government of Pakistan.
and Natural Resources graced the occasion as the Chief
Guest.
340 Exhibitors The sessions were chaired by Dr. Gulfaraz Ahmed, Advisor
Countries Participation: Australia, Austria, Bahrain, Bangladesh, R&D, Mari Petroleum, Former Federal Secretary MPNR
Belgium, Canada, China, Denmark, Egypt, France, Germany, Hong and Dr. Suhail Zaki Farooqui, Director General, Pakistan
Kong, Iran, Italy, Japan, Korea, Malaysia, Netherlands, Pakistan, Council of Renewable Energy Technologies (PCRET)
Poland, Russia, Saudi Arabia, Scotland, Singapore, South Africa,
South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Eminent speakers participated at the conference were Sergi
UAE, UK, USA Transformer Protector - France, Oil and Gas Regulatory
Authority (OGRA), Schneider Electric - UAE, Khyber
Pakhtunkhwa Oil & Gas Company Ltd. (KPOGCL) -
Over 8000 Visitors Pakistan, Centre for Coal Technologies, Punjab University
LOCAL: Karachi, Lahore, Islamabad, Gujranwala, Jhelum, - Pakistan, National University of Science & Technology
Hyderabad, Nooriabad, Rawalpindi, Ghotki, Faisalabad, Lasbela, (NUST) - Pakistan, Adaptive Technologies (Pvt.) Ltd. -
Jamshoro, Gujrat, Rahim Yar Khan, Peshawar, Tooba Tek Singh, Pakistan and FFC Energy Ltd. - Pakistan.
Nawabshah, Nasirabad, Muzaffargarh, Multan, Mirpur Khas, Wah
Cantt., Khairpur, Sahiwal Over 150 participants attended the conference which
includes academia, policy makers, government officials
FOREIGN: Thailand, Singapore, United Kingdom, UAE, China, and private sector
United States, Bahrain, Saudi Arabia, Turkey, Malaysia, Oman,
Germany, Taiwan, Nigeria The conference also received international participation
from USA, Turkey, Finland, Bahrain and UAE

14
Mr. Hamza A. Wazir- DIRECTOR, Power large companies but we participate in trade Mr. Louis Paul- Manager Marketing &
Vision Systems (Pvt.) Ltd. exhibitions to be recognized in the industry. Sales, PetroMarys
POGEE 2016 was a good fair. We have It was the first time that we are exhibiting
participated here for the first time. We Syed Imran-Chief Manager, SSGC at POGEE. The exhibition was absolutely
encourage and look forward to participate SSGC have been participating in POGEE outstanding. I would definitely share my
next year as well. The visitor flow was not for the last 7-8 years and have received best experience with my fellow companies in
high but there were quality visitors at the winning awards. Beside this, recognition Dubai and hopefully we will participate next
show. The energy industry of Pakistan is is also important for us that we have been year too.
getting very critical. It needs support from getting here for the last 4-5 years. This year
the Government. It is also very encouraging a lot of people have showed their interest Mr. Roger Guo-Key Account Manager,
to see that companies are working diligently in LNG project. It is indeed one of the Canadian Solar
for this industry. This will also give the largest projects that SSGC has taken over. This is the second time that we have
support to the industry as a whole. We hope that our partnership with Pegasus participated in this exhibition. We see
would continue. This POGEE has been a POGEE as the most proportional exhibition
Mr. Hafiz Murtaza- Head of Customer very fruitful one because we are working for the energy in this country especially
Care (R&D Department), Inverex Power towards the improvement of energy sector for solar and a lot of resources from the
There is a lot of potential in the Pakistani in Pakistan. I would also love to see Sui exhibition. The visitors are also good and
market. Fortunately, the country is also Northern, our sister concerned company to they are discussing information with us. We
blessed with plenty of natural resources participate here. POGEE is a good exhibition got to know that people are more familiar
which can be utilized for power generation. and provides a brilliant opportunity to with the solar technology. We also hope that
We can produce enough energy but we lack showcase our products. government should support the companies to
in evacuation. Recently, Unilever has shifted work for this country so that we can make it
its business in Rahim Yar Khan to run its Mr. Bilal Samad Khan- Country Manager, more popularized for the commercial as well
operations entirely on solar energy. For Industrial Lubricants MAL Pakistan as residential sector.
agricultural sector, we are setting up solar Pakistani market has a lot of potential in
tube wells. The basic problem in the country every sector. The only problem here is the Mr. Muhammad Nasir Paul- General
is that crops are destroyed due to scarcity of investment. The investment was halted Manager (Mktg. & Pvt. Sales), PEL Power
water and shortfall of electricity. So we are before prior in the last 7-8 years. Actually, in Division
looking into this problem and trying to help the last 8 years the industry has not grown. POGEE is good and people like it. It is a
the farmers. Now more investment is coming; especially successful exhibition. We have seen here
I think POGEE 2016 is excellent. We came if the Pak-China Economic Corridor (CPEC) different companies and they are here to
across many clients who have been working starts and become functional then it will give exhibit new technologies in the energy
with us for a long time. We usually work with new life and economic growth to Pakistan. sector. It should be continued in future.

Mr. Shahid Khaqan Abbasi, Federal Minister for Petroleum and Natural Resources receiving souvenir from
Mr. Aamer Khanzada, Managing Director, Pegasus Consultancy (Pvt.) Ltd. on his visit to POGEE 2016

15
Product News

GasGard 100 Control System


The GasGard 100 Control System is a newly introduced scalable, Doosan Portable Power
high performance data acquisition/data-logging platform that offers G325 T4i
an intelligent approach to data acquisition and control for fixed
Generator
flame and gas detection. Open Ethernet connectivity with web-
based configuration and data monitoring functions allow GasGard Doosan Portable Powers G325 T4i is one of the coolest and
100 Controllers to provide a wide range of monitoring and historical quietest generators in the market. The G325 utilizes a revolutionary
logging functions. View real time trends via web browser from any enclosure that creates separate compartments for the power train and
PC without special software. GasGard 100 Control System provides cooling system combined with the industrys first mass production
fully integrated measurement, display and recording platforms, that application of radial cooling fan technology, Doosan Portable Power
when equipped with MSAs extensive line of transmitters and sensors, now delivers the coolest and quietest mobile generators on the market
forms a complete gas detection solution. without sacrificing performance or reliability - even at extreme
temperatures. With 25-hours of onboard fuel, the G325 T4i is set up
for the long-run.

99HA.01/.02 GAS TURBINE (50 HZ)


MOUVEX 99HA.01/.02 GAS TURBINE (50 HZ) is the worlds largest and
most efficient heavy-duty gas turbine. With its simplified air-
Abaque Peristaltic Hose cooled architecture, advanced materials, and proven operability and
Pump reliability, GEs 9HA units deliver exceptionally low life cycle cost
With more than 20 years of experience pumping and transferring per megawatt. The economies of scale created by this high power
difficult chemicals and fluids, the Abaque Peristaltic Hose pump will density gas turbine, combined with its more than 62 percent combined-
handle your toughest pumping needs from abrasive and aggressive cycle efficiency, enables the most cost-effective conversion of fuel
to shear-sensitive and viscous fluids. Abaque pumps currently operate to electricity to help operators meet increasingly dynamic power
in some of the most demanding environments including mining, demands.
water and wastewater treatment, energy, chemical processing and Streamlined maintenance with quick-removal turbine roof,
OEM applications. Your solutions for abrasive products containing field replaceable blades, and 100 percent bore scope inspection
suspended particles (Up to 77 m3/h) 16 bars pressure (232 psi). coverage for all blades
4-stage turbine with 3D aerodynamic hot gas path, cooling and
sealing improvements, single-crystal and directionally solidified
blades, and double-wall casing for improved clearance control
14-stage advanced compressor with 3D aerodynamic airfoils with
super finish, 3 stages of variable stator vanes, and field-replaceable
blades
DLN 2.6+ combustor with axial fuel staging is proven through
45,000 starts and >2 million hours
Combustor enables improved turndown and greater fuel flexibility
Reduces need for on-site gas compression; fuel pressure
requirements as low as 435 psi/30 bar
Reaches turndown as low as 30 percent of gas turbine baseload
output within emissions compliance
Fuel flexible to accommodate gas and liquid fuels with wide gas
TRIO-20.0-TL/27.6-TL variability, including high ethane (shale) gas and liquefied natural
The three-phase commercial inverter offers more flexibility and gas
control to installers who have large installations with varying aspects GEs HA gas turbine auxiliary systems are pre-configured; factory
or orientations. assembled and tested modules engineered to reduce field connections,
The dual input section containing two independent Maximum Power piping, and valves. This translates to a simpler installation that reduces
Point Tracking (MPPT) allows optimal energy harvesting from two field schedule and installation quality risks while improving overall
sub-arrays oriented in different directions. The TRIO features a installation timesup to 25% quicker compared to GE F-class gas
high speed and precise MPPT algorithm for real power tracking and turbine enclosures.
improved energy harvesting.

16
17
Understanding the
Article

Thai renewable energy


market
8 GW new PV and 5 GW wind until 2040: increasing dependence on energy import, level was attractive: 4 TBH/kWh (approx.
will they be enough to support the growth which is expected to grow from 42% (2013) 10 -ct/kWh in 2014). This volatile support
in the seven most rapidly increasing to 78% (2040). The share of natural gas mechanism expired on 31 December 2015
regions in the world? imports almost doubles due to declining and was substituted by a FiT plus a premium
Thailands energy consumption is to jump domestic production and the high demand for model which was especially supportive
by 75% over next two decades according to power generation. To limit energy imports, for projects of a size up to 10 MW and
the Thailand Power Development Plan of the national power plan (AEDP 2015-2036) exceptionally for PV projects of up to 50
2015 even calculated under conservative foresees that, by 2040, biomass shall have the MWp.
assumptions such as largest share with 13% (11 GW), followed by Under the FiT plus premium program,
PV with 9% (8 GW), wind with 6% (5 GW) approx. 2 GW (31 projects) have already
1. the number of inhabitants to remain stable and hydropower with 5% (4 GW). Plans to
at 66 million until 2040, signed a PPA with the Electricity Generation
add 2 GW of nuclear power have been on Authority of Thailand (EGAT) as per March
2. growth of the gross domestic product hold since 2007 and no financing is available 2016. The EGAT and, to a lesser extent,
(GDP) of this upper middle-income to support the governments wished increase the Provincial Electricity Authority (PEA)
economy to be 3.4% per year until 2040, of 7.5 GW in coal/lignite power plants. and the Metropolitan Electricity Authority
i.e. the lowest within the ASEAN, where Carbon capture and storage technologies are (MEA) have been the main off takers. Off
GDP is expected to double by 2030 from still immature and the Fukushima accident takers are monitored by the Ministry of
the current US$ 2.6 trillion, has driven specific investment costs for Energy or the Thailand Village Fund, which
nuclear to unfeasible levels. decided last year not to award further PPAs.
3. a successful implementation of the
Energy Efficiency Program to reduce The intention was to avoid the risk of a power
energy use by 30% by 2036 (to the 2010
Solution: increase renewable financial deficit or increase on household
standards) and energy shares electricity bills. The first PV projects were
For all these figures, it is expected that the cross-funded by fossil fuel levies. With
4. a smart grid development.
figure of 22 GW of new capacity based on the reduction of oil prices, the ASEAN
reduces fossil subsidies as well. Thus, it is
High electricity demand and renewable energy, which is supposed to
not surprising that the updated power plan
be reached by 2036 (PDP2015), will be
old power plants increased (again) in the national power plan. sets as a condition to expand wind and solar
Power estimates were elaborated considering capacity, levellised electricity costs to be in
Consequently, Thailands ambitious 10-year-
relatively high capital costs (CAPEX) of the range of LNG.
action plan for renewables (Alternative
US$ 1.6m/MWp for PV and US$ 1.7m/
Energy Development Plan (AEDP)), that In a country with a comparatively low GDP
MWp for wind. With the current lower
aims to achieve a 25% energy consumption per capita (US$ 5,977 according to world
CAPEXs, the deployment of wind and solar
from renewable energy sources by 2021 bank data) it is understandable that the
shall be higher. Also, power energy demand
(currently 8%) will need to be adapted. government tries to avoid an increase of
is rapidly increasing in the strong local
The AEDP 2015-2036 plan considers plants households electricity bills (and industrys
paper/pulp sub-sector. At the transport level,
located in Thailand, but also in neighbouring power costs). Lifeline rates have been
several high speed train projects shall be
countries. Thai companies or private investors introduced by the Energy Regulatory
realised which have also not been considered
shall sign power purchase agreements (PPAs) Commission since 2011 to provide free
in the calculations. Finally, domestic demand
with renewable projects located abroad. As access to electricity to households. Also, the
will dramatically increase in a country where
solar resources are plentiful (up to 1,400 power prices for high household-consumers
23% of the population still uses biomass for
kWh/kWp) in Thailand, it is expected that of 400 kWh/p.m. are comparatively low at
cooking.
mainly hydropower and wind energy will be 3.9361 TBH/kWh (9.9 -ct/kWh).
In addition to this higher power demand,
acquired from the neighbours. Competitive bidding shall replace the FiT
the Thais old power fleet needs to be
plus premium incentives (for all technologies
replaced by renewables. Midd-2014, the
peak power demand was as high as 27 GW
Are the tariffs for except PV) in an attempt to keep power
renewables attractive? prices low and quickly increase the power
and almost the same amount (25 GW out of
fleet with renewables. To this end test tenders
the operational capacity 37 GW) needs to be In 2006 Thailand was the first country are running for biomass and biogas projects
decommissioned. to implement a feed-in-tariff (FiT) for in three southern provinces.
renewables in the ASEAN. The programme,
Renewables set to grow called adder, added a premium to the With a stable BBB+ (S&P as of 31/03/2016)
while nuclear and coal wholesale electricity price. Though the and thus a similar rating as in Mexico,
wholesale price is volatile and the premium Poland or Spain, the government expects
power plants on hold was guaranteed for periods of only 7 to 10 international investors will be attracted to
Another important motivation is Thailands years, depending on the technology, the enter this new market. Japan and the UAE

18
are expected to be major investors, whereas subsidy on capital costs in some specific capacity. PV module producers are already
European utilities like Engie already have cases. preparing for a deployment of PV in Thailand
well-established entities in Thailand. and the ASEAN, having ordered 68% of the
Conclusion contracts of German PV equipment suppliers
In addition to the FiT and tender incentives,
the Investment Policy for Sustainable Until now the Thai government has last year.
Development Campaign for Renewable focussed on promoting small projects to
Energy Projects offers several tax gain knowledge. However, this will hardly Source: http://www.sunwindenergy.com/
incentives. For instance, an 8 year exemption enable the country to achieve the target of review/understanding-thai-renewable-
on corporate income taxes on net profits and 25% renewable energy generation by 2021. energy-market
a 50% reduction the following 5 years, 8 year The situation is expected to radically change,
tax exemption on dividends as well a 25% especially in terms of the PV installed

Global Shale Gas Market 2016 Size,


Shares, Growth, Trends and Forecast
to 2020
By: Richard Carter
Shale gas, an emerging concept presently other fossil fuels such as coal has encouraged for market growth. Various segments are
popular only in few regions (namely U.S., its adoption in various industries; Shale carefully evaluated to gauge the potential
Canada) and industries has the potential to gas is therefore gaining prominence as a of the market
impact global energy industry significantly. cutting edge resource that could be a game Porters Five Forces model and SWOT
The increasing popularity of shale gas in changer for various countries as well as analysis of the industry illustrates the
various industries has advocated a growing industries. Additionally, emerging markets potency of the buyers & suppliers
awareness regarding the benefits of shale such as China, Algeria and indonesia provide participating in the market
gas as an energy resource. The significant substantial opportunities for the production
number of shale reserves all over the globe of shale gas as there is an abundance of shale Value chain analysis in the report provides
and the competitive price of shale gas are reserves in these regions. The global shale a clear understanding of the roles of
factors which supplement the growth of the gas market is anticipated to grow to $104 stakeholder involved in the value chain
shale gas market. billion in 2020 (volume production of 19.6
Shale gas has been commercialized only in tcf), at a CAGR of 9.3% from 2014 to 2020. KEY DELIVERABLES
developed regions such as North America, The global market is segmented based on The global shale gas market is categorized
where individual countries produce the gas. technologies used in extraction of shale based on technology, applications and
Moreover, advanced technologies such as gas, its various applications and geography. geography.
hydraulic fracturing & horizontal drilling are Geographically, the market is segmented
used in the extraction of shale gas; this drives into different regions such as North America, KEY MARKET SEGMENTS
the growth of shale gas in the United States Europe, Asia Pacific and LAMEA. The rising
and frees the country from dependence on production of shale gas in the North America MARKET BY TECHNOLOGY
other natural gas resources. Top players is impacting the global production as it is the Horizontal Drilling
are adopting acquisition, joint ventures, only region generating highest revenue for Hydraulic Fracturing
partnerships and collaborations as major the global shale gas market. Moreover, Asia- Water Usage
developmental strategies to help expand their Pacific and European region has tremendous
global reach, and improve their services, potential to grow as a significant number of
thereby enabling them to penetrate the global reserves are untapped in these countries. MAKRET BY APPLICATION
shale gas market. For instance, Baker Hughes Power generation
has acquired BJ Services to diversify their KEY BENEFITS Industrial
international pressure pumping business. The study provides an in-depth analysis Commercial
The acquisition has helped the company of the global shale gas market with Residential
to broaden its portfolio by enhancing the current and future trends to elucidate Transportation
technologies used in the exploration of the imminent investment pockets in the MARKET BY GEOGRAPHY
unconventional gas and deepwater fields. market North America
Also, Anadarko have signed an agreement U.S.
Current and future trends are outlined to Canada
with FMC Technologies to develop new
determine the overall attractiveness and Europe
generation subsea production equipment and
to single out profitable trends to gain a U.K.
systems. There is a growing tendency among
stronger foothold in the market Poland
the companies to enter into the most potential
market as the demand for shale as a natural Quantitative analysis of the current Asia-Pacific
gas would increase in future. As a substantial market and estimations through 2013- China
number of shale reserves are available across 2020 are provided to showcase the Indonesia
various regions, shale gas production enables financial caliber of the market RoW
companies to capture value from the market. Algeria
Drivers and opportunities are evaluated
The ability of shale gas to burn cleaner than to highlight the top factors responsible

19
Country in Focus

German contribution to
Pakistans work on Renewables
to solve the energy issues

In Pakistan, energy has been a hot topic for the Pakistan portfolio is one of GIZs largest ago, Germany was nowhere near its current
decades and continues to frequently feature in worldwide. Energy has been a topic from status and countries like Denmark still have
political discussions and the daily news. With 2005 with contributions on Renewable much higher share of energy generated from
international support and experiences crucial Energy (RE) technology development as well renewable sources today over 40% of
in addressing the energy crisis, its time to as Energy Efficiency (EE) by the Renewable electricity consumption with wind power
look at the German contribution to solving the Energy and Energy Efficiency project (GIZ facilities alone accounting for around 30% of
pertinent issues. The Deutsche Gesellschaft REEE). Denmarks energy production.
fr Internationale Zusammenarbeit (GIZ, Meanwhile, Germany is approaching
German Development Cooperation) has Germany as a forerunner in 100GW of installed capacity in RE (98 GW
been working in Pakistan on behalf of the Renewable Energy as of 2015, almost half of its overall installed
German Government, mainly the German Germany is often seen as synonymous with capacity). Renewables hold a 30% share in
Federal Ministry for Economic Cooperation energy transition and the promotion of the electricity market as per 2015 and 12.5%
and Development (BMZ), since the bilateral renewable energies today and for good in overall primary energy consumption.
agreement signed in 1972, with a permanent reason. However, it is worth keeping in mind While this is above average for OECD
representation in Pakistan since 1990. With a when looking at Pakistans case that a decade countries (ca. 18%), the most impressive
total of 16 projects and programs at present, element is not the overall percentage but the
quick growth of the contribution from RE
technologies.
The German approach is thus not
internationally unique; however, the speed
(having gone from 6% RE in the electricity
source mix, which happens to be almost
identical to Pakistans current situation when
excluding hydropower, to 30% over the last
15 years) and scope of the Energiewende
(German for energy transition) are
exceptional. This is based on the level of
determination in the endeavor that has been
undertaken which makes Germany stand
out in the international comparisons. Based
on said commitment and investment in RE,
Germany can rightly be seen as the forerunner
in a growing wave of international activity,
with 2015 marking more investment globally
in RE compared to fossil fuels for the third
year running.

20
Historically, after a long period of growing inverter technology and batteries. solutions, too.
levels of support for environmental The RE industrys success with several
topics starting in the 1970s, including the world market leaders or tier-1 products is
orientation towards RE especially in the complemented by the flourishing research
early 2000s after the Renewable Energy Act and policy sectors and the private investors
from 2000, Germany turned almost all its and producers of RE, meaning some 400,000
focus on RE and away from unclean coal and people are involved in some way in the
unsafe nuclear power, mainly from 2010 and RE sector based on rough estimates. Larger
2011 onwards (respectively). companies have increasingly woken up to
The German approach is thus not the call after much of the initial impetus
internationally unique; however, the speed came from SMEs, another hopeful sign for
(having gone from 6% RE in the electricity Pakistan.
source mix, which happens to be almost One last thing to be kept in mind is the
identical to Pakistans current situation when contribution that energy efficiency (EE)
excluding hydropower, to 30% over the last is making and expected to make in the
15 years) and scope of the Energiewende future, with 50% savings in primary energy
(German for energy transition) are consumption based on EE targeted for 2050
exceptional. This is based on the level of compared to the 2008 baseline, primarily
determination in the endeavor that has been in the buildings (80%) and transport (40%)
undertaken which makes Germany stand sectors.
out in the international comparisons. Based
on said commitment and investment in RE, Electricity generation from RE since 1990 (excluding In summary, issues remain even in Germany
Germany can rightly be seen as the forerunner
geothermal) in GWh and it has not all been smooth sailing,
Source of the data: Zeitreihen zur Entwicklung der
in a growing wave of international activity, erneuerbaren Energien in Deutschland (February 2016)
including necessary improvements regarding
with 2015 marking more investment globally by BMWi (Bundesministerium fur Wirtschaft und Energie, the grid and the cost to consumers who
in RE compared to fossil fuels for the third http://www.erneuerbare-energien.de/EE/Navigation/DE/ carry the main load since the industrys
Service/Erneuerbare_Energien_in_Zahlen/Zeitreihen/ rates have been partially frozen to avoid an
year running. zeitreihen.html), Graphics: Wikipedia
adverse effect on growth in export-oriented
Historically, after a long period of growing
levels of support for environmental
topics starting in the 1970s, including the
orientation towards RE especially in the
early 2000s after the Renewable Energy Act
from 2000, Germany turned almost all its
focus on RE and away from unclean coal and
unsafe nuclear power, mainly from 2010 and
2011 onwards (respectively).

One can clearly identify


the positive impact of each
legislative intervention on the
growth of the RE sector
Most striking about the German case is the
interplay of factors on various levels that
led to the current success of RE in Germany
despite mediocre natural conditions. The
policy sector showed a determination
and created a stable policy environment
that allowed investors to feel safe in their What is also worth noting when discussing the Germany. However, when weighing these
investment (through guaranteed feed-in Pakistani case is the role of decentralization against the benefits and long-term gains and
tariffs for up to 20 years and long term policy and increased transparency of the RE sector growth potential, Germanys investment in
goals), while also getting the people behind in Germany, especially in solar energy, which RE appears to have paid off with some
the transition, despite rising electricity next to the powerful wind energy sector is valuable lessons learnt for later starters
costs above the European standard. By one of the two pillars of the Energiewende. who can benefit and leapfrog some early
turning peoples mindset from being mere The renewables transition in Germany developments as is the case for Pakistan with
consumers to prosumers, the large majority constituted more of a revolution to some its vast RE potential.
of the population was won over with support rural areas, especially in the North and the
figures sometimes hitting the low 90s in structurally weaker East of Germany since
overall percent. these areas are now providing the electricity
Other contributing factors were the support for the major centres which themselves Germanys motivation to get
and space given to innovations, start-ups and are dependent on them. Additionally, by involved the potential for RE
crowd funding as well as continued research making RE technologies not a peripheral In Pakistan
investment (e.g. ca. 1.5 billion in 2013 but a central policy approach, the individual
household and cooperatives or communities Around half of Pakistans population,
alone) to remain market leaders, as well as especially in rural areas, is without reliable
commercial and industrial flexibility, moving gained much more relevance compared to
the big utilities that continue to be in charge and affordable power supplies. Inefficient
from solar panel production to becoming an energy usage hinders competition and is
innovation, high-end and service industry in mainly of the necessary base load coverage,
but increasingly see the need to invest in RE holding back development in the production
the former core sector as well as developing

21
(currently 5%), mainly solar PV, wind power Net-metering is an incentive scheme for
Country in Focus

and biomass. Additionally, EE measures consumers of an electric grid related to


need to contribute by adding demand-side Distributed Generation, typically through RE
management to reduce the relative need for sources. It aims at maximizing the utilization
energy (decoupling). The overall potential of a renewable system installed at consumers
for energy savings from EE is estimated at premises through off-taking power through
approximately 30-50%. the electric grid at times when the production
of the system exceeds the consumers own
The case for net-metering: consumption. A consumer who installs an on-
Net- Metering Regulation of site RE generator, primarily for reducing his
Pakistan own grid dependence, is now able to supply
any surplus energy units from his installation
sector. Altogether, Pakistans energy sector is The energy crisis leads to expensive fuel to the grid. These units are recorded and later-
marked by a substantial electricity shortage imports and dissatisfaction among the on netted-off, subtracted, against the units
of about 6000 MW installed capacity, population. Access to modern, clean, and consumed from the grid. Thus, a net-metering
affecting economic growth as well as social crucially reliable and domestic sources of scheme provides an incentive to consumers
development. energy is a core ingredient to escape this to install decentralized RE systems by giving
According to international estimates, trap. For this to happen, Pakistan faces a them certainty that they benefit from any
energy-sector investments in Pakistan are significant challenge in fully harnessing its electricity produced through the system,
set to double over the next twenty-five considerable natural resources to address its either through own consumption or through
years, following the international trend energy problems but also of revamping the compensated feeding of electricity into the
grid, from which the energy-deprived state at
large benefits simultaneously.
In this scenario, a bi-directional electric meter
is placed between consumers connection
points and the grid, which records any units
drawn from the grid or fed into the grid.
The main benefits of the distributed
renewable generation are:
Additional electricity to reduce the load
gap
Relief for the grid from increasing
demand
Reduction of line losses and improved
financial proposition for DISCOs
Avoiding expensive fuel imports
Increased acceptance of or enthusiasm for
RE in the public
Climate change mitigation through
reduction of GHG emissions
Throughout Pakistan, approximately 700,000
customers are connected to the national grid
with three- phase meters which qualify
described above. Meanwhile, at approx. transmission network for stable electricity them for installation of small scale RE
12% per annum, the increase in electricity supply. Moreover, keeping the German case projects under the net-metering regulation.
consumption in Pakistan is outpacing in mind, motivating the population to get It is envisaged that at least 10% with an
economic growth. By way of response, RE involved in the solution to the energy crisis average installation of 10kW each will
are scheduled to make up at least 5% of the is a crucial step. come online in the next two years, adding
overall energy consumption by 2030. Thus, the Government of Pakistan announced approximately 700MW of clean indigenous
Projections indicate that on top of a 10% net- metering regulations in September 2015 power supply to the national grid (partly via
increase on the current 30% of electricity after policy advice from GIZ REEE. The self-consumption) to contribute to a solution
provided by hydro-power in Pakistan, main objective is to promote investment in for the energy crisis.
up to 30% of Pakistans electricity in the the generation of small-scale distributed RE,
next decade could come from other RE specifically solar and wind energy.

Formerly German Pakistan Trade and Investment

German Pakistan Chamber of Commerce and Industry (GPCCI) is the first European chamber in Pakistan. It is the premier, recognized body with the
aim of promoting trade and investment relations between Germany and Pakistan. GPCCI provides a platform to connect and engage with businesses
from both the countries helping to create networks and partnerships that would foster economic activity.
GPCCI shares the mission to promote, develop and further the economic well-being of its members by providing a collective voice in advocacy to
represent and protect members interest, as well as quality services to help members enhance their competitiveness and succeed in their businesses
thereby contributing significantly to the economic progress of both nations. For further information please email info@gpcci.com.pk.
German Pakistan Chamber of Commerce & Industry (GPCCI) is now an official representative for the Senior Experten Service (SES). SES is a non-
profit organisation supported by the German industry and sponsored by the Federal Ministry of Economic Cooperation and Development.

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