ISLAMABAD, May 07 (ABC): The government planned a 500-megawatt floating solar power project at the Keenjhar Lake in Sindh for the generation of clean, renewable energy to support the country’s growing energy needs while reducing reliance on imported fossil fuels.
According to documents available with Wealth Pakistan, the $243.63 million project will generate around 861.91 gigawatt-hours of electricity annually, with a capacity factor of 19.6%, and supply power to K-Electric under a long-term Power Purchase Agreement (PPA).
The initiative is aligned with Pakistan’s 2030 emission reduction goals.
The project will be executed through the Engineering, Procurement and Construction (EPC) model, selected through competitive bidding.
The authorities have already secured a Letter of Intent (LoI) from K-Electric, while the bidding process for EPC (engineering, procurement and construction) contractors is underway.
The floating solar facility is located near major industrial zones, allowing efficient transmission of green electricity to the high-demand areas. Unlike conventional solar plants, the project will utilize water surfaces, avoiding land-use conflicts and enhancing energy efficiency.
The project offers 13.94% internal rate of return (IRR), with a tariff estimated at 3.98 US cents per kilowatt-hour. The investment structure includes $182.72 million in debt financing and $60.91 million in equity.
The funds will be utilized for EPC development, transmission infrastructure, and operations and maintenance (O&M). The project is also expected to create employment opportunities during construction and technical operations phases.
Aligned with Sustainable Development Goals (SDGs) 7, 9, and 13, the initiative underscores Pakistan’s commitment to renewable energy expansion, industrial decarbonisation, and climate resilience.
