The government has announced plans for a 500-megawatt floating solar power project at Keenjhar Lake in Sindh, aimed at generating clean, renewable energy to meet the country's growing energy demands while decreasing reliance on imported fossil fuels.
Project Details and Investment
According to documents available with Wealth Pakistan, the $243.63 million project is expected to produce approximately 861.91 gigawatt-hours of electricity annually, with a capacity factor of 19.6%. The power generated will be supplied to K-Electric under a long-term Power Purchase Agreement (PPA).
This initiative aligns with Pakistan's 2030 emission reduction goals. The project will be executed through the Engineering, Procurement and Construction (EPC) model, with contractors selected via competitive bidding. The authorities have already secured a Letter of Intent (LoI) from K-Electric, and the bidding process for EPC contractors is currently underway.
Strategic Location and Benefits
The floating solar facility is situated near major industrial zones, enabling efficient transmission of green electricity to high-demand areas. Unlike conventional solar plants, this project utilizes water surfaces, thereby avoiding land-use conflicts and enhancing energy efficiency.
The project offers an internal rate of return (IRR) of 13.94%, with an estimated tariff of 3.98 US cents per kilowatt-hour. The investment structure includes $182.72 million in debt financing and $60.91 million in equity. Funds will be allocated for EPC development, transmission infrastructure, and operations and maintenance (O&M).
Employment and Sustainability Goals
The initiative is expected to create employment opportunities during both the construction and technical operations phases. Aligned with Sustainable Development Goals (SDGs) 7, 9, and 13, this project underscores Pakistan's commitment to expanding renewable energy, decarbonizing industry, and enhancing climate resilience.
