500MW floating solar project planned

ISLAMABAD:

The government has planned a 500 megawatt floating solar power project at Keenjhar Lake in Sindh to generate clean, renewable energy and reduce reliance on imported fossil fuels, according to official documents.

The $243.63 million project will generate about 861.91 gigawatt-hours of electricity annually, with a capacity factor of 19.6%, and will supply power to K-Electric under a long-term power purchase agreement (PPA). The initiative aligns with Pakistan's 2030 emission reduction goals.

The project will be executed through the Engineering, Procurement and Construction (EPC) model, selected through competitive bidding. Authorities have already secured a letter of intent from K? Electric, and the bidding process for EPC contractors is underway.

The floating solar facility is located near major industrial zones, allowing efficient transmission of green electricity to high-demand areas. Unlike conventional solar plants, it will utilise water surfaces, avoiding land use conflicts and enhancing energy efficiency.

The project offers a 13.94% 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 create employment during construction and technical operations phases.