NEPRA OKs 370MW Renewables for KE, PKR 235B Fuel Savings Expected
ISLAMABAD: In a landmark decision accelerating Pakistan’s renewable energy transition, the National Electric Power Regulatory Authority (NEPRA) has approved three major renewable energy projects proposed by KE, totaling 370 MW. These include two solar PV projects in Balochistan—100 MW at Bela and 50 MW at Winder—and a 220 MW hybrid solar-wind project at Dhabeji in Sindh.
The approvals follow NEPRA’s scrutiny of bid evaluation reports (BERs) submitted by KE under the relaxed provisions of the Competitive Bidding Tariff Regulations (NCBTR-2017). Master Textile Mills Limited (MTML) emerged as the lowest responsive bidder offering the lowest generation tariff of PKR 11.6508/kWh and PKR 11.2071/kWh for the Winder and Bela projects respectively.
On the other hand, JCM Power Corporation secured the Dhabeji project, offering a generation tariff of PKR 8.9189/kWh. NEPRA confirmed that all three projects passed prudency checks, with the proposed tariffs deemed reflective of prevailing market conditions and consistent with recent benchmarks.
Public hearings for the Balochistan Solar projects were held in December 2024, followed by that for the Dhabeji hybrid project in February 2025. Active participation was witnessed from stakeholders such as Amreli Steel, the Korangi Association of Trade and Industry (KATI), the Pakistan People’s Party (PPP), and Gharo Solar Ltd while written comments also submitted.nepra asaan approach
No grievances were recorded from participating bidders. The bidding processes were found to be transparent, with international and local advertisements, independent oversight by bid evaluation committees, and robust documentation and communication protocols.
While the bidding timelines exceeded initial regulatory limits, NEPRA accepted KE’s justifications, which included the complex hybrid nature of the Dhabeji project, challenges in land acquisition, and time required to finalise financing. The Authority granted post-facto approval for the delay.
KE estimates that the Dhabeji hybrid project alone will generate PKR 176.26 billion in fuel cost savings over the life of the project while annually it is estimated to be at PKR 7.05 billion. Meanwhile, total FOREX savings of approximately USD 986 million are expected over the entire lifespan, with annual savings would amount to USD 39.45 million.
The Bela and Winder solar projects are expected to contribute additional fuel cost reductions and further diversify KE’s generation portfolio.
KE expects to save around PKR 2.3 billion each year in fuel costs by replacing expensive fuel, adding up to PKR 57.8 billion over the projects’ lifetime. The projects are also projected to save USD 17.01 million in foreign exchange every year, with total savings reaching USD 425.2 million over time.
All three projects will be integrated into KE’s network through transmission upgrades already accounted for.
With NEPRA’s approvals in place, KE is expected to proceed with notifying the successful bidders and initiating the next phases of development. The utility reaffirmed its commitment to driving forward affordable, sustainable energy for Karachi and contributing to Pakistan’s broader clean energy goals.
