Hydro Power Potential and Investment Prospects in Gilgit-Baltistan

HYDRO POWER POTENTIAL AND INVESTMENT PROSPECTS
IN GILGIT-BALTISTAN
PRESENTATION SEQUENCE
Map of Gilgit-Baltistan
Salient Potential Indicators for Hydro Development in GB
Supply & Demand of Electricity in Gilgit-Baltistan
Hydro Power Potential
Institutional Arrangement
Present Power Policies
Salient Reforms Underway
Incentives already available for Private Investors
Challenges
Salient Potential Indicators for Hydro Development
in Gilgit-Baltistan
Gilgit Baltistan is the water bank for Pakistan due to large area of
glaciers and snow deposits in its mountains.
Catchment Area is 72496 Sq Km, which include about 27 %
glaciers, the biggest in the world outside polar region.
Main Tributaries of Indus River are 06 (Olding River, Shyoke River,
Shigar River, Gilgit River, Hunza River & Astore River).
Drop of Indus River up to Diamar /Basha Dam site is 1.37 Km.
Average annual run off near Basha is 50 MAF.
Hydro power potential on Main Tributaries & Indus River is
40,000 MW.
Hydro power potential on sub tributaries is 1,200 MW.
SUPPLY AND DEMAND OF ELECTRICITY
IN GILGIT-BALTISTAN
Present Generation : 90 MW (92 Power Stations)
Population Connected
with suppressed load : 75%
Present Demand : Conservative 200 MW

Optimistic - 410 MW
Future Demand Forecast:-
2011 : 428 MW
2012 : 446 MW
2013 : 465 MW
2014 : 485 MW
2015 : 506 MW
2016 : 528 MW
2017 : 551 MW
2030 : 863 MW
Under Construction Power

Projects : 29 (40 MW)
Projects Under Active Planning :-
S. # Name Capacity Status
Feasibility Study
1 Hanzal Gilgit River 20 MW completed
2 Shagharthang, Skardu (Financed by ADB) 26 MW Procurement stage

3 Thak Chilas (Financed by ADB) 4 MW Procurement stage
4 Naltar V, Gilgit (PSDP) 14 MW Procurement stage
5 Naltar III, Gilgit (PSDP) 16 MW Procurement stage
Detail Engineering Design

6 Basho, Skardu 28 MW
under process by WAPDA
Detail Engineering Design

7 Harpo, Skardu 42 MW
under process by WAPDA
Feasibility study
10 Ghowari, Shyoke Ghanche 20 MW
completed
Feasibility study
11 Hassanabad, Hunza 5 MW
completed
Feasibility study
12 Dermadar, Ghizer 2 MW
completed
13 Hushey, Ghanche 4 MW PC-II under process
Feasibility Study
14 Regional Grid in Gilgit-Baltistan 132 KV completed
Average Construction Cost
Per MW in GB : 2.0 Million US $
Average Production Cost

Per Unit (KWh) : 3 4 US cents
HYDRO POWER POTENTIAL IDENTIFIED
1) 122 sites on sub tributaries
in GB identified by WAPDA
and GTZ (Germany) 772 MW
2) 6 sites identified by WAPDA on River Indus:
a. Yugo 520 MW
b. Skardu 1600 MW
c. Tungus 2200 MW
d. Yulbo 2800 MW
e. Bunji 7100 MW
f. Diamer-Basha 4500 MW
TOTAL 18,720 MW
3) 36 projects identified by
W & P department GB on
tributaries and sub tributaries
of River Indus 204 MW
Total 19,696 MW
INSTITUTIONAL ARRANGEMENTS
Water & Power Department GB is responsible for Planning,
Execution and Operation of power projects in GB.
WAPDA is responsible for mega projects on River Indus
besides small hydros under specific directions of GOP.
NEPRAs jurisdiction not yet extended to GB in the absence of
National Grid. W & P department is responsible for devising
tariff with the approval of GB government.
GB Electricity Development Company being raised shortly.
PRESENT POWER POLICIES
GOP Policy for power generation projects 2002: All types of
power projects exceeding 50 MW capacity under public
sector, private sector (IPPs) and public private partnership are
covered. BOOT and BOO are applicable.
GOP Renewable Energy Policy 2006: Solar, Wind and Small
Hydro Power projects up to 50 MW capacity are covered. The
policy also provides private investment incentives.
GB Hydel and Renewable Energy Policy 2007: This policy
covers projects up to 50 MW capacity under public sector
program. Being revised for development of hydro power
projects by private sector and public private partnership also.
SALIENT REFORMS UNDERWAY
Consultancy services acquired for Establishment of GB
Electricity Development Company to facilitate investors
through one window operation besides capacity building of
W&P Department.
Feasibility study of Regional Grid in GB completed. The
project aims at interconnection of all existing and future
hydro power projects to a common grid for improvement of
diversity factor, minimize line losses and establish a power
corridor for interconnection to the National Grid. Estimated
cost of the project is Rs. 25 billion and proposed for
construction in 3 phases.
Computerized billing system introduced in Gilgit city as pilot
project.
PC Energy Meters introduced to minimize electricity pilferage.

INCENTIVES ALREADY AVAILABLE
FOR PRIVATE SECTOR INVESTORS
Under Renewable Energy Policy of Pakistan 2006, which is
applicable in Gilgit Baltistan also following incentives for private
sector investment in development of Hydro Power projects
having capacity of 50 MW or below are covered:-
1. Investment opportunity for private sector for following
categories:-
a. IPPs for sale of power to the grid only. (Solicited and
unsolicited proposals)
b. Captive Power cum grid spillover projects for self-use and
sale to utility.
c. Captive power projects for self or dedicated use.
d. Isolated grid power projects of 5 MW and below.
2. Except for category 1(a) above, the projects will not require
any LOI, LOS or IA.
3. It permits an investor to generate electricity from hydro
power project at one location and receive an equivalent
amount of energy for own use elsewhere on the grid at
investors own cost of generation plus transmission charges
(wheeling concept / Energy Banking).
4. It permits Net Metering and Billing. A power producer can
sell surplus energy at one time and receive electricity from
the grid at another time and settle accounts on net basis.
5. Simplified principles of tariff determination.
6. Insulates the investor from hydrological variability risk.
7. It facilitates projects to obtain carbon credits for avoided

green-house gas emissions, helping financial returns and
reducing energy cost for the purchaser and inturn the
consumers.
8. Off grid hydro power projects can be developed for supply to
a local community by corporate entities, NGOs or individuals
at any location with the approval of the Provincial
Government. For such projects, simplified procedural
arrangements can be developed by the provincial
government.
9. No Custom Duty or Sales Tax for machinery and equipments
with spares requiring import and not manufactured in the
country for initial installation for renewable energy projects.
10. Many other fiscal and financial incentives. Details can be
seen from the Renewable Energy Policy 2006.
CHALLENGES
Less revenue receipt due to lower load factor for repayment
to the IPPs.
Affordable energy cost for the consumers in case of power
purchased from IPPs.
GOP may not permit any subsidy under present policy.
Non interconnection of GB with the national grid.

NEPRAs role in GB.
Capacity building of the power utility.
Tendency of high electricity pilferage.
POSSIBLE VENTURES FOR PRIVATE
INVESTMENT
1. Establishment of regional grid in Gilgit-Baltistan to interlink

all the power potential sites.
2. Investment in the field of Captive Power & Energy Banking.

Industry and hydro power development may take place
simultaneously.
3. The main purpose to club hydro power development with

other industries would enable the private investors to offer
affordable tariff.
4. Power Projects through IPPs would be viable
for mega projects on Indus river through PPIB/WAPDA.
Commencement of physical work on high voltage
transmission line by WAPDA for interconnection to the
national grid may take place simultaneously
5. Project through IPPs can be developed simultaneously at

the identified sites near to Bunji and Diamar/Basha projects
to supply power to WAPDA during implementation of these
vital projects.
THANK YOU
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HYDRO POWER POTENTIAL AND INVESTMENT PROSPECTS

Salient Potential Indicators for Hydro Development in GB

Supply & Demand of Electricity in Gilgit-Baltistan

Hydro Power Potential

Present Power Policies

Salient Reforms Underway

Incentives already available for Private Investors

Present Demand : Conservative 200 MW

Under Construction Power

S. # Name Capacity Status

2 Shagharthang, Skardu (Financed by ADB) 26 MW Procurement stage

3 Thak Chilas (Financed by ADB) 4 MW Procurement stage

4 Naltar V, Gilgit (PSDP) 14 MW Procurement stage

5 Naltar III, Gilgit (PSDP) 16 MW Procurement stage

Detail Engineering Design

Detail Engineering Design

13 Hushey, Ghanche 4 MW PC-II under process

Average Production Cost

PC Energy Meters introduced to minimize electricity pilferage.

7. It facilitates projects to obtain carbon credits for avoided

Non interconnection of GB with the national grid.

1. Establishment of regional grid in Gilgit-Baltistan to interlink

2. Investment in the field of Captive Power & Energy Banking.

3. The main purpose to club hydro power development with

5. Project through IPPs can be developed simultaneously at

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