Karachi, September 25 2024: JCM Power, a Canadian-based renewable energy company, has emerged as the bidder with PKR 8.9189 per unit the lowest proposed tariff, establishing a new precedent in the country’s renewable space.
Earlier this month, K-Electric (KE), Pakistan’s only private utility firm, announced the receipt of seven bids for Pakistan’s first 220 MW hybrid wind/solar project in Dhabeji Sindh. Building up on the momentum, the company marked another important milestone with the opening of the financial bids at a private event in Karachi. With PKR 8.9189 per unit, JCM Power, a Canadian-based renewable energy company, has emerged as the bidder with the lowest proposed tariff, establishing a new precedent in the country’s renewable space.
KE is pioneering the competitive bidding process in the renewable energy space, following an approval from NEPRA in the first half of 2024. With the launch of these projects, KE is sprinting ahead towards a sustainable and promising future, in line with an aim to enhance share of renewable energy to 30% in its mix by 2030. As a next step, KE will submit the bid evaluation report to NEPRA fot it’s approval.
Sharing his views on the achievement, Moonis Alvi CEO KE said, “Alhamdulillah! We are very happy to see such a bid, which has been driven from a very transparent bidding process. Many congratulation to the qualifying bidder. We are grateful to the investors for their continued confidence in KE as a brand and in Pakistan’s economic potential.”
“We deeply appreciate NEPRA supporting us for competitive bidding process on such a complex and innovative project. It aligns seamlessly with KE’s vision to induct renewables, reduce generation costs, and gradually reduce dependence on expensive imported fuel sources. With this kind of tariff, we anticipate that the government will have the capacity to pass on the relief to customers as well.”
Shahab Qader, Chief Strategy Officer KE, also added, “This is a momentous occasion as KE breaks the barrier yet again. This project is the first in Pakistan to integrate solar and wind energy for improved operational and financial efficiency. These unique specifications also made this project technically demanding requiring deeper expertise. These renewable energy projects at Winder and Bela in Balochistan, and the latest one in Dhabeji, Sindh, totaling to 370 MW, have received a resounding 2960 MW in offers. This response serves as an affirmation of the utility’s long-term strategy to make cheapest cost of generation possible”
This strategic approach has the potential to break the cycle of dependence on costlier sources and reduce overall energy production costs and, simultaneously contributing towards catalyzing the economic progress of the country.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.
