KE receives lowest tariff bid for 220 MW hybrid project in Pakistan's Sindh province

K-Electric (KE) has achieved a significant milestone with the receipt of the country's lowest tariff bid for its 220 MW hybrid wind/solar project in Dhabeji, Sindh.

Earlier this month, KE announced the receipt of seven bids for this pioneering project, and the financial bids were recently opened at a private event in Karachi. JCM Power, a Canadian renewable energy company, emerged as the lowest bidder with a proposed tariff of PKR 8.9189 per unit, setting a new benchmark in Pakistan's renewable energy sector.

Following NEPRA's approval in the first half of 2024, KE has been at the forefront of the competitive bidding process in the renewable energy space. This project is a crucial step towards KE's goal of increasing the share of renewable energy in its mix to 30% by 2030. The next step involves submitting the bid evaluation report to NEPRA for approval.

Moonis Alvi, CEO of KE, expressed his satisfaction with the transparent bidding process and congratulated the qualifying bidder. He emphasized the investors' confidence in KE and Pakistan's economic potential. Alvi also highlighted NEPRA's support for the competitive bidding process, which aligns with KE's vision to incorporate renewables, reduce generation costs, and decrease reliance on expensive imported fuels. He anticipates that this tariff will enable the government to pass on the benefits to customers.

Shahab Qader, Chief Strategy Officer of KE, noted the project's significance as the first in Pakistan to integrate solar and wind energy for enhanced operational and financial efficiency. He acknowledged the technical demands of the project and the expertise required. The renewable energy projects in Winder and Bela, Balochistan, and the latest one in Dhabeji, Sindh, totaling 370 MW, have received an impressive 2,960 MW in offers. This response underscores KE's long-term strategy to achieve the lowest generation costs.

KE's strategic approach aims to reduce dependence on costlier energy sources, lower overall production costs, and contribute to the country's economic progress.