Country’s Lowest Tariff Bid Received for 220 MW Hybrid Project
Karachi, September 24, 2024: Earlier this month, K-Electric (KE), Pakistan’s sole private utility company, announced the receipt of seven bids for the country’s first 220 MW hybrid wind/solar project in Dhabeji, Sindh. Building on this momentum, the company achieved another significant milestone with the opening of financial bids at a private event in Karachi. JCM Power, a Canada-based renewable energy firm, emerged as the bidder with the lowest proposed tariff at PKR 8.9189 per unit, setting a new benchmark in Pakistan’s renewable sector.
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KE is leading the competitive bidding process in renewable energy, following NEPRA’s approval in the first half of 2024. With the launch of these projects, KE is rapidly progressing towards a sustainable future, aiming to increase the share of renewable energy in its portfolio to 30% by 2030. The next step involves submitting the bid evaluation report to NEPRA for approval.
Expressing his thoughts on this achievement, KE CEO Moonis Alvi stated, “Alhamdulillah! We are thrilled to see such a bid emerge from a transparent process. Congratulations to the qualifying bidder, and we are thankful to our investors for their ongoing confidence in KE and Pakistan’s economic potential.”
He further emphasized, “We greatly appreciate NEPRA’s support for our competitive bidding process on this complex and innovative project. This aligns perfectly with KE’s vision to incorporate renewable energy, lower generation costs, and gradually reduce reliance on expensive imported fuels. With this tariff, we expect the government to be able to pass relief on to customers as well.”
Shahab Qader, Chief Strategy Officer at KE, added, “This is a significant moment as KE breaks new ground once again. This project is the first in Pakistan to integrate solar and wind energy, enhancing both operational and financial efficiency. The unique specifications of this project demanded deep expertise. Our renewable energy initiatives at Winder and Bela in Balochistan, along with the latest project in Dhabeji, total 370 MW and have attracted a remarkable 2960 MW in offers. This response reaffirms our long-term strategy to achieve the lowest possible generation costs.”
This strategic approach aims to reduce dependence on costly energy sources and lower overall production costs while contributing to the country’s economic progress.
ABOUT K-ELECTRIC:
K-Electric (KE) is a publicly listed company established in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan, supplying electricity to Karachi and its surrounding areas. The majority of shares (66.4%) are owned by KES Power, a consortium that includes Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding) from Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan holds a 24.36% stake in the company, while the remaining shares are available as free float.
