K-Electric’s hybrid project attracts Pakistan’s lowest tariff bid of 3.09 cents

K-Electric (KE) continues to make significant progress in its renewable energy transition with the development of the 220 MW site-neutral hybrid project in Dhabeji.

This project, currently moving through crucial regulatory stages, is expected to attract $200 million in foreign investment, reflecting strong international confidence in KE’s renewable initiatives.

The National Electric Power Regulatory Authority (NEPRA) conducted a hearing on KE's Bid Evaluation Report (BER) for the project. The innovative solar-wind hybrid project has attracted the nation's lowest tariff bid of 3.09 cents per kWh, submitted by Canadian firm JCM Power.

Following NEPRA's approval earlier in 2024, KE initiated the industry's first competitive bidding process for its renewable energy projects. A hearing was held in December 2024 for the BER of the 150 MW Winder and Bela projects in Balochistan.

KE’s renewable energy efforts are part of a broader 640 MW green energy initiative, representing the first phase of their long-term plan to add 1,300 MW of sustainable energy to their generation mix. This milestone aligns with KE’s strategy to integrate 30% renewable energy into their portfolio by 2030.

Moonis Alvi, CEO of KE, emphasized 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 underscores our dedication to addressing the energy trilemma and reducing our reliance on imported fuels."

Projected to save PKR 7.05 billion annually and reduce foreign exchange outflow by nearly $40 million, the 220 MW Dhabeji hybrid project will greatly enhance economic and environmental sustainability.

It is expected to reduce carbon emissions by 298,000 tonnes annually.