Nepra allows Aerem Energy to set up hybrid project at Dhabeji
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has granted generation concurrence to Aerem Energy (Private) Limited (AEREPL) for setting up a 269MW hybrid renewable energy project at Dhabeji in District Thatta, Sindh, marking a key milestone in the country’s transition towards cleaner energy sources.
According to an official determination issued on July 17, 2026, the Authority accorded concurrence under Section 14(B)(5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, for the proposed wind and solar hybrid facility.
The project, with an installed capacity of 269MW, will be developed at Goth Dhori Jokhio near Dhabeji and is part of K-Electric’s broader Power Acquisition Programme (PAP) aimed at diversifying its generation mix and increasing reliance on renewable energy.
Background documents reveal that K-Electric had included a site-neutral hybrid project in its PAP, which was approved by the Nepra in May 2024. Following a competitive bidding process, a consortium led by JCM Power Canada emerged as the lowest bidder and subsequently incorporated AEREPL as a Special Purpose Vehicle (SPV) to execute the project.
The hybrid project integrates wind and solar technologies, leveraging the strong wind corridor in the Gharo–Jhimpir region alongside solar irradiation to ensure optimal energy generation. Officials say this combination will enhance system reliability and reduce dependence on imported fuels.
K-Electric, in its comments to the regulator, highlighted that the project achieved a record-low tariff of Rs8.9189 per kWh (3.0899 US cents) and is expected to generate significant savings—estimated at Rs176 billion over the project’s life—by displacing expensive thermal generation. The utility also projected foreign exchange savings of nearly USD 986 million.
The Energy Department of the Government of Sindh strongly supported the initiative, noting the province’s vast untapped renewable energy potential. It emphasised that such projects not only contribute to energy security but also reduce exposure to volatile global fuel prices, while offering environmental and socio-economic benefits, including job creation and local development.
The project comprises approximately 175MW of wind power and 94MW of solar photovoltaic capacity, and is estimated to cost around USD 251 million. Financing is expected to be arranged through a mix of 80 percent debt and 20 percent equity, with local and international banks being approached for funding.
Nepra noted that the approval of concurrence will enable the project sponsors to move towards financial close and commence construction, subject to compliance with regulatory requirements, including the grid code and environmental standards.
The authority also observed that the project aligns with national renewable energy policies and will contribute to reducing greenhouse gas emissions, improving energy affordability, and enhancing the resilience of the power system.
With this approval, Pakistan takes another step toward its renewable energy targets, as policymakers increasingly push for indigenous, fuel-free generation to address the challenges of circular debt, high tariffs, and energy security.
In another decision, the Authority has approved a generation tariff of Rs8.9189/kWh for the project.
Copyright Business Recorder, 2026