LOCATION:
Jhimpir , Pakistan

OWNER/DEVELOPER:
Hawa Energy Pvt Ltd.

INSTALLATION TYPE:
Wind

STATUS:
Operational

COMMERCIAL OPERATION DATE:
March 15, 2018

PROJECT SIZE:
50 MW

LAND AREA:
1,200 Hectares

AVERAGE WIND SPEED:
7.1 meters/second

PROJECT COORDINATES:

Longitude (East) 67”59’39.96”

Latitude (North) 25”01’48.05”

FEASIBILITY105%
PERMITTING105%
FINANCING105%
CONSTRUCTION105%
OPERATION105%

Project Overview

In May 2017, JCM Power launched its Asian platform, partnering with the JS Group through its acquisition of an interest in the 50MW Hawa wind farm located in Jhimpir, Pakistan. The project achieved commercial operation in Q1 2018. OPIC, the US development bank, is providing debt financing for the project. In addition to the Hawa wind farm, JCM is also exploring the development of other power projects in Pakistan as part of its Asian platform.

KEY MILESTONES

•  Letter of Intent (LOI) & Land Lease: LOI issued in February 2012 and land leased in             November 2012

•  Tariff: Feed-in Tariff was awarded of US cents 10.448/kWh levelized in August 2015

•  Energy Purchase Agreement (EPA): EPA executed in March 2015 and amended in July         2016

•  Initial Environmental Examination (IEE): February 2016

•  Sovereign Guarantee: August 2016

•  Financial Close (FC): November 2016

•  Commercial Operation Date (COD): Project achieved COD on March 15th, 2018

MARKET OVERVIEW

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

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

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

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

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