Opportunities in Punjab:
Punjab with population of 93 million is the largest province of
Pakistan and contributes 60 % of the GDP. It has a large
industrial base with more than 48,000 units. There is a growing
un-met demand of energy which offers an opportunity for
investments in power generation projects based on various
Punjab has a total low-head hydel potential of 600-1000 MW on
canals and barrages
Out of three potential larger sites shared with AJK, 600 MW
project can be undertaken at Mahl in collaboration with the
Govt. of AJK
small hydel projects (55MW), whose feasibility studies have been
completed, are ready to be implemented under joint venture mode.
These projects are to be established at the following sites:
Khanki Barrage; Qadirabad Barrage; Lower Chenab Canal; Upper
Chenab Canal; and Qadirababd Balloki Link Canal.
Download the list of Hydro Power potential
in all Punjab (MS Excel)
Punjab has sizeable coal reserves, estimated at 235 million
tons, of varying quality in Salt Range.
coal purchase agreement has been signed for a minimum of 2400
tons/day of coal supply from Balochistan (Chamalang) for a 300
MW plant in District Muzaffargarh in JV mode.
Energy Department is seeking private sector investment in
proposed 300 MW power plant at District Rahimyar Khan based on
Industrial Estates under Punjab Small Industries Corporation have
been targeted for establishment of dedicated power plants (10-50
MW) using mix of coal, biomass and solid waste. These will be
dedicated projects with energy buy back guarantee.
Biomass, Biogas and Waste to Energy:
Huge potential of biomass based power generation exists on
unutilized crop residue of around 34 million tons per annum
consisting of rice husk, rice straw, maize stalk and cotton
35 million livestock in Punjab offers substantial opportunity
for biogas power projects
12,300 tons/day of solid waste is produced in urban centers of
Punjab which is a readily available source for generation of
32 MW Thermal Power Plant on Municipal solid waste near
Faisalabad City with completed feasibility study and identified
land is ready for interested investors in JV/PPP mode
Solar and Wind:
Huge potential for generation of power through solar energy
especially in Southern Punjab
5000 Acres of land in Cholistan has been reserved by the
GoPunjab for the establishment of solar power plants
50 MW CSP Solar project in District Muzzafargarh is planned in
public sector/JV mode
Wind corridor in Kalarkahar area, around 10-20 KM wide and 250
Km long, promises considerable potential for wind power projects
Policy and Institutional Framework:
Punjab Power Generation Policy -
Government of Punjab has developed and an enabling power policy to
facilitate investment in this vital sector. Punjab Power
Policy 2009 provides a framework for the development of power
plants in both public and private sector as well for joint venture
projects. The policy is intended to promote all types of
technologies including hydel, coal, solar, wind and bio-mass.
Hydel projects in the private sector would be implemented on
Build-Own-Operate-Transfer (BOOT) basis while other projects in
the private sector can be established on either BOOT basis or on
Build-Own-Operate (BOO) basis.
Incentives: Power generation
companies are allowed to import plants and equipment @ 5% duty (0
% for renewable energy) with exemption on sales tax. Other
incentives include: income tax exemption for life; full
repatriation of profit plus investment; international arbitration
awards enforceable under law; hydrological risk borne by the
government; minimum 15% ROE guaranteed net of taxes (US$ based).
Development Company Limited -
The Government of Punjab has established Punjab Power Development
Company (PPDCL), a government owned company registered with the
Security Exchange Commission of Pakistan (SECP), to develop power
projects in public sector as well as in public-private partnership
- The Punjab Power Development Board (PPDB) has been established
as "One Window Facilitator" to promote and encourage private sector's participation in the power sector.
For further information please contact:
Punjab Power Development Board.
Old Anar Kali, Lahore,
+92 42 99212794
Fax: +92 42 99212796