Pakistan has long grappled with a debilitating energy crisis, characterized by soaring electricity costs and an overreliance on imported fossil fuels. This has placed an immense burden on consumers, with monthly electricity bills often exceeding housing costs.
To address these pressing challenges, K-Electric (KE), the primary power utility serving Karachi and its surrounding areas, has embarked on a transformative journey to revolutionize the nation’s energy sector. The company aims to reduce its dependence on imported fuels and provide more affordable, sustainable electricity to its customers.
KE’s vision is to increase the share of renewable energy in its generation mix to 30% by 2030. To achieve this goal, the company secured regulatory approval in April 2024 for 640 MW of renewable projects. These 640 MW projects are the first round of the company’s long-term ambition to add 1300 MW of sustainable energy into the generation mix. The initiative comprises three tranches: 150 MW in Balochistan, 270 MW in Sindh, and a pioneering 220 MW hybrid solar and wind project.
The 150 MW solar project in Balochistan has garnered significant attention from both domestic and international investors. The project received a strong response, with fifteen bids submitted, positioning Pakistan as a promising market for renewable energy investments.
Following the successful milestone of technical bid opening on K-Electric’s 150 MW solar energy projects in Balochistan, the company marked another important milestone with the opening of the financial bids at a private event in Karachi. With PKR 11.2 per unit, Master Textile Group has emerged as the bidder with the lowest proposed tariff, establishing a new precedent in the Pakistani renewable space. Post the financial bid opening KE will proceed to the submission of bid evaluation report to NEPRA after which the successful bidder will be announced.
The event was attended by representatives of the bidders representing international and local entities who qualified in the technical bidding, including North American companies JCM Power Group and Hecate Global Renewables, alongside local organizations Atlas Power Limited, Hub Power Holding Company, Master Textile Mills Limited, Metro Group of Companies, Oursun Pakistan Limited, and Sapphire Electric Company. KE’s leadership, including Moonis Alvi – Chief Executive Officer and Shahab Qader – Chief Strategy Officer, attended the event.
CEO Moonis Alvi tweeted:
https://x.com/alvimoonis/status/1825586071608111349?t=0kUKpKocplCvqJAaQ3Y-Aw&s=19
The deadline for bidding for the second tranche of projects of 220 MW is 31st August, while the deadline for the third tranche of projects of 270 MW is 30th September. The successful bids will undergo regulatory scrutiny and further approvals before finalization.
By prioritizing renewable energy, K-Electric is not only addressing the immediate energy crisis but also building a sustainable foundation for Pakistan’s future.
