K-Electric’s solar projects in Balochistan achieve record-low tariff bid

K-Electric’s (KE) 150-megawatt solar energy projects in Balochistan have achieved a record-breaking tariff bid of Rs11.2 per unit, setting a new standard in Pakistan’s renewable energy sector, according to media reports. The announcement was made during a recent ceremony, reflecting growing confidence in private sector-led energy initiatives amid the country’s economic challenges.

This achievement is part of KE’s larger strategy to nearly double Pakistan’s solar capacity by adding 640 megawatts (MW) of clean energy over the next two years. KE’s ongoing projects include a 150MW solar project in Balochistan, a 270MW solar project in Sindh, and a 220MW hybrid solar-wind energy project. These initiatives are key to KE’s goal of reducing dependence on costly fossil fuels and lowering Pakistan’s overall import expenses.

The bidding process for these projects, which began in August, is expected to conclude in September 2024. These efforts are anticipated to significantly boost the share of renewable energy in Pakistan, where solar currently makes up just 1% of the energy mix.

The financial bid opening event in Karachi attracted participation from both international and local entities, including JCM Power Group and Hecate Global Renewables from North America, alongside Pakistani companies like Atlas Power, Hub Power Holding Co, and Sapphire Electric Co.