K-Electric attracts lowest bids for 150 MW solar projects 

K-Electric (KE) is progressing its renewable energy goals with the development of 150 MW solar projects at Winder and Bela, Balochistan. However, the Karachi-based power utility attracted record-low bids in a competitive process. 

During a public hearing organized by the National Electric Power Regulatory Authority (Nepra), the power utility received praise for integrating sustainable energy into its power generation mix.

Nepra Member (Technical) acknowledged KE's efforts in harnessing renewable energy, noting the initiative as commendable and forward-thinking. 

Shahab Qader, KE's Chief Strategy Officer, highlighted the significance of receiving eight bids for the 50 MW Winder project and seven bids for the 100 MW Bela project, despite challenges in attracting bids for renewable energy projects in Pakistan.

The lowest bid for the Winder project was Rs11.65 per unit, while the Bela project recorded a bid of Rs11.20 per unit. Both lowest bids were submitted by Master Textile Mills Ltd.

The Winder and Bela projects are part of KE's broader plan to integrate 1,300 MW of renewable energy into its power generation portfolio, with these two projects contributing to a cumulative 640 MW capacity targeted under the initial phase. This milestone reflects KE's commitment to transforming Pakistan's energy landscape and integrating 30 percent renewables into its generation portfolio by 2030.

Nepra's public hearing focused on five key issues regarding KE's Bidding Evaluation Report (BER), including adherence to the NEPRA Competitive Bidding Tariff Regulations 2017 (NCBTR), compliance with Nepra's directives, reflection of prevailing market conditions in the lowest bid tariffs, justification of delays in the bidding process, and measures to ensure technical qualification of successful bidders.

KE assured Nepra that all regulations under the NCBTR were followed. Qader explained that a one-month extension in the bidding process aimed to increase competition by accommodating external challenges, such as restrictions on Chinese companies working in Balochistan and the need for bidders to explore alternative engineering, procurement, and construction (EPC) contracts. Financiers also required more time to evaluate the projects before making investment decisions.

Responding to a question about the net benefit for Karachi's consumers, Qader stated that the solar projects are expected to save approximately Rs2.5 billion annually by replacing more expensive energy sources. 

He also addressed a suggestion to explore rooftop solar solutions, noting that these projects would generate electricity at nearly Rs11 per unit, significantly lowering net-metering rates compared to the current Rs27 per unit.

Nepra has reserved its judgment on KE's renewable energy proposals and will issue a decision following further scrutiny of the bidding and evaluation process.

Over the past year, KE has attracted significant investor interest in its renewable initiatives, including 15 bids for the Winder and Bela projects and seven bids for its pioneering 220 MW hybrid solar-wind project in Dhabeji, Sindh. 

Additionally, KE has concluded the process for its 270 MW Sind Solar Projects and submitted their Auction Evaluation Report.