K-Electric secures lowest tariff bid for hybrid project

ISLAMABAD: K-Electric (KE) continues to make strides in its renewable energy transition, with the 220 MW Site-Neutral Hybrid Project in Dhabeji, progressing through key regulatory stages.

The National Electric Power Regulatory Authority (NEPRA) held a hearing on Tuesday on K-Electric ’s Bid Evaluation Report (BER) for the project, marking a significant step towards transforming the country’s energy landscape, said a press release.

The first-of-its-kind solar-wind hybrid project in Pakistan has attracted the country’s lowest tariff bid at 3.09 cents/kWh, submitted by JCM Power, a Canadian firm.

The project is set to attract $200 million in foreign investment, reinforcing international confidence in KE’s renewable initiatives and Pakistan’s clean energy potential.

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Following NEPRA’s approval earlier 2024, K-Electric launched the industry’s first competitive bidding process for its renewable energy projects.

A hearing in this regard was held in December 2024 for the Bid Evaluation Report (BER) of the 150 MW Winder and Bela projects in Balochistan.

Together KE’s renewable energy projects form part of a 640 MW green energy initiative, representing the initial phase of KE’s long-term plan to add 1,300 MW of sustainable energy to its generation mix. This milestone aligns with KE’s broader renewable energy strategy, which targets 30% renewable integration into its portfolio by 2030.

Moonis Alvi, CEO KE, highlighted the significance of the project, stating: “The 220 MW hybrid solar-wind project is a transformative step in KE’s renewable energy journey, reinforcing our commitment to a cleaner, more resilient energy future.

By securing Pakistan’s lowest tariff bid and attracting significant foreign investment, this project emphasizes our dedication to addressing the energy trilemma and tapering off our reliance on imported fuels.

We appreciate NEPRA’s support in this process and look forward to a decision which will enable the timely execution of this landmark project.

This initiative is not just about adding renewable capacity; it’s about delivering long-term economic and environmental benefits to our customers.

By integrating cleaner energy sources, we aim to contribute to Pakistan’s broader sustainability goals and remain committed to working alongside our key stakeholders to drive the country’s energy transition forward.”

With projected annual savings of Rs7.05 billion and a foreign exchange reduction of nearly $40 million, the 220 MW Dhabeji hybrid project will significantly contribute to economic and environmental sustainability.

It is expected to cut carbon emissions by 298,000 tonnes annually, reinforcing KE’s role as a key driver of Pakistan’s green energy transition.

KE remains engaged with the regulator and other stakeholders to ensure the successful execution of this project which will accelerate Pakistan’s energy transition and secure an affordable and sustainable future for Karachi’s customers.