$243.63 million project will generate about 861.91 gigawatt-hours of electricity annually
ISLAMABAD: The government has planned a 500-megawatt floating solar power project at Keenjhar Lake in Sindh to produce clean, renewable energy and decrease dependence on imported fossil fuels, according to official documents.
The $243.63 million project will generate approximately 861.91 gigawatt-hours of electricity each year, with a capacity factor of 19.6 percent, and will provide power to K-Electric under a long-term power purchase agreement (PPA). The initiative aligns with Pakistan’s 2030 emission reduction targets.
The project will be carried out through the Engineering, Procurement and Construction (EPC) model, selected via competitive bidding. Authorities have already obtained a letter of intent from K-Electric, and the bidding process for EPC contractors is currently underway.
The floating solar facility is situated near major industrial zones, enabling efficient transmission of green electricity to high-demand areas. Unlike conventional solar plants, it will utilize water surfaces, avoiding land use conflicts and enhancing energy efficiency.
The project offers a 13.94 percent internal rate of return, 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 project is also expected to generate employment during both construction and technical operations phases.