The government has planned a 500-megawatt floating solar power project at Keenjhar Lake in Sindh as part of efforts to expand renewable energy generation and reduce dependence on imported fossil fuels.
The project, estimated to cost $243.63 million, is expected to generate approximately 861.91 gigawatt-hours of electricity annually with a projected capacity factor of 19.6 percent. The electricity produced will be supplied to K-Electric under a long-term power purchase agreement.
Officials said the initiative aligns with Pakistan’s broader strategy to achieve its 2030 emission reduction targets while increasing the share of renewable energy in the national power mix amid rising fuel import costs and energy security concerns.
The project will be developed under the Engineering, Procurement, and Construction (EPC) model through competitive bidding. Authorities have already secured a letter of intent from K-Electric, while the bidding process for EPC contractors is currently underway.
Unlike conventional solar farms, the project will utilize the surface of Keenjhar Lake for panel installation, eliminating major land acquisition challenges. Officials added that the cooling effect of water is also expected to improve solar panel efficiency.
The location’s proximity to key industrial zones is likely to support efficient transmission of electricity to high-demand urban and industrial areas.
According to project documents, the floating solar initiative is expected to deliver an internal rate of return of 13.94 percent, while the projected tariff has been estimated at 3.98 US cents per kilowatt-hour.
The financing structure includes nearly $182.72 million in debt financing and around $60.91 million in equity investment.
Officials further stated that the project is expected to create employment opportunities during both the construction and operational phases, particularly in technical and maintenance-related fields.
