The Pakistan government has authorised the construction of a 20MW wind farm near the Karachi coast. The facility, to be built by the Swedish company Milergo, it expected to cost $20 million.

The project represents a prototype for a much larger investment. The company has proposed to the Pakistan government that it build up to 10 000 MW of wind capacity at a projected cost of $11 billion.

The proposal involves the construction of a 1000 MW wind facility near Karachi at a cost of $1 billion. Then, in a second phase, a number of other projects with an aggregate capacity of 9000 MW would be constructed at different sites across the country.

Work on the first, 1000 MW phase is due to start after completion and testing of the 20 MW prototype wind farm. It would be completed within three years. The following phase encompassing the remaining 9000 MW would be finished by 2020.

During the second phase 75 per cent of the components for the turbines would be manufactured in Pakistan. The company proposes to agree a tariff set in local currency which will avoid increased costs to the Water and Power Development Authority if the Pakistan currency loses value against other currencies.