A $75 million (£61.25m) loan has been approved to support what is believed will be Pakistan’s largest wind farm.
Triconboston Consulting Corporation (TBCC) will use the money from the Asian Development Bank (ADB) to develop the 150MW project in Jhimpir, near Karachi.
It will generate a total of 520GWh of electricity each year, which will be sold under a 20-year agreement to Pakistan’s Central Power Purchasing Agency.
The project, which is due to be completed in March 2018, is ADB’s third wind energy investment in the country’s growing power sector. The bank previously announced it will invest $1.4 billion (£1.14bn) in Pakistan’s energy sector.
Mohammed Azim Hashimi, Investment Specialist at ADB, said: “This wind farm is a major contributor to Pakistan’s drive to scale up renewable energy use and to reduce its reliance on coal and petroleum for power generation. The operation of this farm will avoid the production of over 350,000 tons of carbon dioxide equivalent emissions a year and help to close the country’s power shortfall.”
Pakistan needs to escape its heavy reliance on fossil fuels if it is to hit its Vision 2025 goals for sustainable economic growth, according to the ADB.
The Vision 2025 plan aims to increase low carbon generation, reduce power shortages and catch up with demand.