Karachi: Electricity generated from the planned 500-megawatt floating solar power project at Keenjhar Lake will be supplied to K-Electric under a long-term power purchase agreement, according to official documents.
The government is planning the project as part of broader efforts to expand renewable energy generation and reduce dependence on imported fossil fuels.
The floating solar facility is estimated to cost USD 243.63 million and is expected to generate around 861.91 gigawatt-hours of electricity annually, with a projected capacity factor of 19.6%.
Officials said the project aligns with Pakistan’s 2030 emission reduction targets and is intended to support the country’s transition towards cleaner and sustainable energy sources.
The project will be developed under the Engineering, Procurement and Construction (EPC) model through a competitive bidding process. Authorities have already secured a letter of intent from K-Electric, while the bidding process for EPC contractors is currently underway.
According to the documents, the project site’s proximity to major industrial zones is expected to facilitate efficient transmission of electricity to high-demand areas.
Unlike conventional solar farms, the floating solar facility will utilise the lake’s water surface, reducing land-use requirements while potentially improving operational efficiency.
The project is estimated to offer an internal rate of return of 13.94%, with an estimated tariff of 3.98 US cents per kilowatt-hour.
Its financing structure includes $182.72 million in debt financing and $60.91 million in equity investment.
Officials added that the project is also expected to create employment opportunities during both the construction and operational phases.
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