GOOD F-I-T FOR PAKISTAN

Pakistan Regulator Seeks Approval of Feed-in Tariffs for Wind; Two-tier Tariff System Proposed--First in Developing World
Paul Gipe, October 11, 2011 (Wind-Works)

"Feed-in tariffs for wind energy have been submitted to the Water and Power Ministry from Pakistan's National Electric Power Regulatory Authority (NEPRA)…[It is] a novel two-tier system of tariffs depending upon ownership. Pakistan will pay foreign wind developers less than domestically-owned companies."

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"…[If approved,] Pakistan would leap ahead of any feed-in tariff proposal for wind energy in North America. The targeted wind capacity of 1,500 MW is alone significant. Possibly more significant, however, the proposed tariffs are not simply fixed at one single price for 20 years…[T]he tariffs during years eleven through twenty are half those during the first ten years of the contract. Payment in this manner approximates repayment of debt and equity during the first decade. After debt retirement, the tariff can be substantially reduced while still maintaining the desired return on equity sufficient to attract investment…"