PD invites bids for Guddu plant steam turbine rehab
Pakistan's Power Division is rehabilitating Guddu Power Plant's steam turbine to add 297MW capacity and reduce generation costs by Rs4.19 per unit, enhancing grid reliability.
- International bidding for Guddu Power Plant's steam turbine rehabilitation.
- Expected 297MW capacity increase and Rs4.19/unit cost reduction.
- Enhanced national grid reliability and operational flexibility.
ISLAMABAD The Power Division has invited international competitive bids for rehabilitation of the steam turbine of Guddu 747MW Power Plant, a move expected to reduce the plant’s generation cost by Rs4.19 per unit—from Rs13.87 to Rs9.68—and unlock an additional 297MW of generation capacity.
According to official statement issued by the Power Division, the procurement process for rehabilitation of Steam Turbine-16 (ST-16) and allied equipment has formally been initiated following a detailed technical study, integrity assessments and engineering review conducted by the Power Division.
The project has been structured as an EPC turnkey package, with bids invited through international competitive bidding.
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The deadline for submission of bids has been set for October 7, 2026, while the targeted commissioning date for the rehabilitation works is December 2028.
ST-16 and its associated generator have remained out of service since a fire incident in July 2022.
As a result, Guddu 747 Power Plant is currently operating in open-cycle mode at around 450MW, making its generation relatively expensive.
The plant currently stands at around 11th in the dispatch merit order. Following rehabilitation of the steam turbine and restoration of full combined-cycle operation, the plant is expected to achieve its designed output of 747MW and improve its position to approximately 7th in the merit order.
Power Division spokesperson said that restoration of ST-16 would provide the system operator with an additional block of comparatively lower-cost electricity, enabling it to displace more expensive generation from the system.
The additional 297MW capacity represents an increase of approximately 66 percent over the plant’s current output and would allow the government to derive greater value from an existing generation asset without investing in a new power plant.
The rehabilitation is also expected to bring down the plant’s generation cost by Rs4.19 per unit, from Rs13.87 to Rs9.68 per unit, thereby improving its competitiveness in the national power system.
The Power Division has described the project as strategically important for the national grid, given Guddu’s location at a critical point in the transmission network and along the north-south power flow corridor.
Restoration of the plant to full combined-cycle operation is expected to enhance grid reliability, operational flexibility and the ability of the system operator to manage power flows between the northern and southern regions. The initiative is part of the Power Minister’s broader efforts to maximise the utilisation of existing generation assets, improve operational efficiency and reduce the cost of electricity supplied to consumers.
Copyright Business Recorder, 2026