Pakistani companies continue push for solar as K-Electric opens bidding for 120MW project in Karachi

As Pakistani companies continue to try and incorporate solar more into their energy mix, in the latest development, K-Electric (KE) — the utility powering the country's largest city — has opened bids for a 120 megawatts project in Deh Halkani in Karachi's District West.

The lowest bid was offered by Kot Addu Power Company (KAPCO).

In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, KAPCO announced that it had submitted a competitive bid tariff of PKR 9.8319 per kilowatt-hour (3.4061 cents per kWh).

A reference exchange rate of 288.65 as been set as base rate.

In the first round, K-Electric plans to install projects generating a total of 640MW, whereas the company's long-term ambition is to add 1,300MW of sustainable energy into the generation mix in three tranches.

The first tranche is a 150MW in Balochistan, with subsequent projects of 270MW in Sindh, and a 220MW site-neutral project — which would also be the first hybrid solar and wind project in the country.

The company estimates that these additions will enhance the share of renewable energy in the generation mix to approximately 30%.
In August, the company received a bid of PKR 11.2 per unit from Master Textile Group — the lowest proposed tariff — establishing a new precedent in the Pakistani renewable space for a 150MW project.

Post the financial bid opening, KE will submit a bid evaluation report to the National Electric Power Regulatory Authority, after which the successful bidder will be announced.