Pakistan's wind energy market faces numerous barriers common in other developing countries as well, namely insuficient grid infrastructure and ineficient policy implementation.
Although the barriers pertaining to ﬁnancing projects have been assigned moderate-level seriousness, the cost of capital is signiﬁcantly high. Moreover, if the project sponsor is not an established business house, it was observed that the project faced serious problems to raise debt from domestic or international markets.
Similarly, the cost of capital raised by various developers is very high due to factors such as high country risk, inﬂation etc. Finally, the ﬁnancial sector had a mixed response with respect to ﬁnancing more projects due to the reported higher level of lending exposure taken at the energy sector in the country. Therefore, if the country needs to develop additional renewable energy projects, it shall have to rely on foreign capital and debt markets.
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