Karachi August 25 2024: Following the successful milestone of technical bid opening on K-Electric’s 150 MW solar energy projects in Balochistan, the company marked another important milestone with the opening of the financial bids at a private event in Karachi.
With PKR 11.2 per unit, Master Textile Group has emerged as the bidder with the lowest proposed tariff, establishing a new precedent in the Pakistani renewable space. Post the financial bid opening KE will proceed to the submission of bid evaluation report to NEPRA after which the successful bidder will be announced.
The 640 MW projects are the first round of the company’s long-term ambition to add 1300 MW of sustainable energy into the generation mix and comprise 3 tranches. The first tranche is 150 MW in Balochistan, with subsequent projects of 270 MW in Sindh, and a 220 MW site neutral project which is also the first hybrid solar and wind project in the country. The company estimates that these additions will enhance the share of renewable energy in the generation mix to approximately 30%.
The event was attended by representatives of the bidders representing international and local entities who qualified in the technical bidding, including North American companies JCM Power Group and Hecate Global Renewables, alongside local organizations Atlas Power Limited, Hub Power Holding Company, Master Textile Mills Limited, Metro Group of Companies, Oursun Pakistan Limited, and Sapphire Electric Company. KE’s leadership, including Moonis Alvi – Chief Executive Officer and Shahab Qader – Chief Strategy Officer, attended the event.
Speaking on the occasion, Moonis Alvi, CEO KE stated: “We are very pleased to be making history with each step on this journey towards sustainability. We are grateful to the investors who are committing to building a stable and sustainable energy ecosystem with us. We must thank NEPRA for their support and consent, without which these projects would not materialize.”
Shahab Qader, Chief Strategy Officer also shared his views, “This interest is itself a resounding endorsement of the investment potential that Pakistan continues to have. As the country’s only privatized utility, K-Electric also prides itself on being a trusted and recognized brand with whom investors are willing to partner. This proves the point that renewable energy is the future, and we are ready to turn this into reality.”
The deadline for bidding for the second tranche of projects of 220 MW is 31st August, while the deadline for the third tranche of projects of 270 MW is 30th September. The successful bids will undergo regulatory scrutiny and further approvals before finalization.
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 utility in Pakistan supplying electricity within a 6500 square kilometers territory including Karachi and its adjoining areas. The majority shares (66.4%) of the company are listed in the PSX owned by KES Power, a consortium of investors including Aljomaih 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 minority shareholder (24.36%) in the company.
