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Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board Fuel Mix Acvieved During 2013 till June 2020 After suffering from electricity shortfalls for several years, Pakistan has now entered into an era of surplus electricity in its system. Since emergency period is over, therefore, prevailing situation allows policy makers to take measures for developing power sector on sustainable footings. Accordingly, in order to avoid the problems caused by repeated cycles of power shortages, surpluses and mismatches in the development of various components of supply chain affecting the socio-economic development of the country, sustainable development of power system is being pursued by the GoP through integrated planning for optimal, affordable and secure development of develop 3960 MW 3633 MW 4000 3500 3000 2500 to 2000 1500 1000 660 MW 333 MW 500 O Hydel Thar Coal Imported Coal RLNG Oil Gas a diversified energy-mix which is dominated by renewable hydro and Thar coal. the power sector. This approach includes accurately forecasting demand, PPIB is targeting adding generation capacity, improving transmission and distribution systems, bringing costs down and ensuring sustainability. For the first time, comprehensive planning is being conducted on yearly basis in Pakistan in the form of the Indicative Generation Capacity Expansion Plan (IGCEP), which includes expansion planning studies that will be updated annually in order to retain accuracy in the wake of changing dynamics. The aim of the IGCEP is to optimize energy generation costs in order to ensure that adequate generation is added at a least-cost basis to meet future energy demands. PPIB is keen to further increase the percentage of Thar coal and Hydro in the energy-mix and in this regard it is already involved in processing such projects which is evident from the below image: Imported Coal 300 MW (2%) Thar Coal Planned Fuel-Mix by PPIB RLNG 1263 MW 10% Oil Gas 0% 0% Hydel 4290 MW (35%) 6277 MW (52%) The performance of PPIB towards discouraging future power generation based on expensive oil & depleting natural gas for power generation is further evident from the fact that during 2013 till June 2020, not a single oil based IPP was entertained and after 2014, no new natural gas based project was allowed by PPIB. In this perspective, the fuel-mix which was achieved by PPIB is a unique blend of indigenous, renewable and less expensive thermal (Hydro + Gas + RLNG + Coal) power generation projects. Detail is described in below image: 415 MW 0 MW PPIB has been a top performing department of the GoP for developing power sector and has successfully unfolded various unaddressed chapters of the power sector. The same are captured below; > Λ > Λ > PPIB implemented IPPs program of the GoP as envisioned in 1994 under the Power Policy 1994 and introduced private capital of multibillion US Dollars in the power sector of Pakistan. Later on, PPIB handled 2002 Power Policy quite effectively and now implementing Power Generation Policy 2015 and Transmission Line Policy 2015. PPIB has the distinction of successfully implementing Pakistan and AJ&K's first Hydro IPP in 2013, later another two hydro IPPs were commissioned which include 147 MW Patrind and 102 MW Gulpur. Similarly, Pakistan's first Thar Coal based IPP of 660 MW has also been processed and implemented through PPIB under Power Generation Policy 2015. PPIB has so far materialized three mega projects of 3,633 MW based on RLNG while another project of 1,263 MW is also about to be completed soon. These RLNG based projects were exclusively processed by PPIB under the IPP regime of the Power Generation Policy 2015 which is also a new chapter on the energy landscape of Pakistan. PPIB maintained its exclusiveness through private sector resource mobilization in the Transmission Line Sector of Pakistan. Under this initiative, PPIB is processing a mega project covering the distance of approximately 900 kilometers between Matiari (Sindh) and Lahore (Punjab). This project is not only the first private sector transmission line project but it would also be Pakistan's first project which would be equipped with HVDC technology. PPIB is processing major chunk of CPEC energy segment comprising thirteen power generation projects of total 11,648 MW and the above mentioned Transmission Line Project carrying cumulative investment outlay of approximately US$ 20 billion. PPIB has also started processing small hydropower projects upto 50 MW generation capacity under Tripartite Letter of Support Retime of Power Generation Policy 2015. In this regard, initially two projects have already been issued TLOSS while several others are being processed for the same. 33 34
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