Power utility K-Electric (KE) on Tuesday said it had received the “country’s lowest tariff bid” of Rs8.9189 per unit from a Canadian-based renewable energy company for the KE’s 220 megawatts (MW) hybrid project.
The development comes after KE received seven bids for its 220MW site neutral hybrid project in Dhabeji, Sindh.
“Building up on the momentum, the company marked another important milestone with the opening of the financial bids at a private event in Karachi. With PKR 8.9189 per unit, JCM Power, a Canadian-based renewable energy company, has emerged as the bidder with the lowest proposed tariff, establishing a new precedent in the country’s renewable space,” KE said on Tuesday.
The company said it was working on a competitive bidding process in the renewable energy space, following an approval from the National Electric Power Regulatory Authority (NEPRA) in the first half of 2024.
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“With the launch of these projects, KE is sprinting ahead towards a sustainable and promising future, in line with an aim to enhance share of renewable energy to 30% in its mix by 2030.
“As a next step, KE will submit the bid evaluation report to NEPRA for its approval,” the utility said.
Sharing his views, Chief Executive Officer (CEO) of KE Moonis Alvi congratulated the qualifying bidder, saying “we are grateful to the investors for their continued confidence in KE as a brand and in Pakistan’s economic potential”.
Alvi termed the development “a major step” towards sustainable energy via competitive bidding.
“We are breaking the dependence on costlier fuels, enabling access to affordable electricity.”
Shahab Qader, Chief Strategy Officer KE, said the 220MW project is the “first in Pakistan to integrate solar and wind energy for improved operational and financial efficiency”.
“These renewable energy projects at Winder and Bela in Balochistan, and the latest one in Dhabeji, Sindh, totaling to 370MW, have received a resounding 2960MW in offers,” he shared.
KE is a public listed company incorporated in Pakistan in 1913 as KESC. Privatised in 2005, KE is the only vertically integrated power utility in the country supplying electricity to Karachi and its adjoining areas.
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The majority shares (66.4%) of the company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF).
The Government of Pakistan is also a shareholder (24.36%) in the company while the remaining are listed as free float shares.
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