There should be no ambiguity about transitioning towards renewable energy resources and developing a competitive energy market. Any progress in this direction should be embraced wholeheartedly. The only private entity operating across the entire power value chain, K-Electric, is actively working on it. Its renewable energy projects are now at a critical juncture.
The bidding process was completed transparently, securing record-low tariffs, and is now awaiting regulatory approvals. These projects represent KE’s first-ever renewable energy initiatives and mark an important step toward a competitive energy market. A timely decision is essential to ensure that Pakistan does not miss out on this cost-effective renewable capacity.
K-Electric has successfully completed an open and competitive bidding process for 150 MW solar projects in Winder and Bela, Balochistan, and a 220 MW Site Neutral Hybrid Project in Sindh, attracting both local and international interest. The company has submitted the Bid Evaluation Reports to NEPRA for approval. Two additional projects—120 MW solar in Deh Halkani and 150 MW solar in Deh Mithaghar—also went through the same process, concluding successful bidding for a total of five renewable energy projects.
NEPRA has played an active role in ensuring fair competition, leading to a process that demonstrates improved governance in the energy sector and growing investor confidence in Pakistan’s renewable energy space.
These renewable projects are not just about cleaner energy—they also bring significant cost efficiencies. Dependence on imported fossil fuels has been a major driver of rising electricity costs in Pakistan. These projects provide a hedge against fuel price volatility while reducing pressure on foreign exchange reserves.
The economic impact is also substantial. More than 1,600 jobs are expected to be created during the construction phase, with long-term employment opportunities for hundreds more. Additionally, the projects will contribute to regional development, particularly in Balochistan and Sindh, which boast some of the highest solar irradiance levels in the country.
The environmental benefits are equally significant. These projects are expected to prevent 700,000 tons of CO emissions, supporting Pakistan’s climate goals and improving air quality. At a time when global financing for green energy is expanding, delays in approving these projects send the wrong message to international investors.
KE aims to integrate 30 percent renewable energy into its generation portfolio by 2030, aligning with national and provincial energy transition objectives. These projects have already been included in IGCEP 2022 and KE’s Power Acquisition Program. However, procedural delays in approvals risk undermining investor confidence in the power sector.
Current low tariffs take advantage of market-driven renewable equipment prices, which remain volatile. A timely decision will ensure a smooth process, as further delays could render the bids invalid and jeopardize the entire bidding process.
For instance, the 150 MW Winder Bela solar project had its hearing in December 2024, and its bid bond is valid only until March 31, 2025. Similarly, the 220 MW Site Neutral Hybrid (wind and solar) Project had its hearing in February 2025, with its bid bond expiring on April 30, 2025. Any further delays would force Pakistan to continue relying on expensive thermal generation, further straining the financial health of the power sector—leading to increased subsidies, higher tariffs, or even a potential fiscal crisis.
The next few weeks are crucial. A decision to move forward will not only unlock economic and environmental benefits but also reinforce investor confidence in Pakistan’s energy sector. If approvals are not expedited, the loss will not just be KE’s—it will be a setback for Pakistan’s energy security, economic stability, and long-term power sector reforms.
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