Govt plans 500-megawatt floating solar project at Keenjhar Lake

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.

According to official documents, the project carries an estimated cost of $243.63 million and is expected to generate around 861.91 gigawatt-hours of electricity annually with a capacity factor of 19.6%.

The electricity generated from the project will be supplied to K-Electric under a long-term power purchase agreement.

Officials said the project aligns with Pakistan’s 2030 emission reduction targets and is intended to support the country’s transition toward cleaner energy sources.

The floating solar plant will be developed under the Engineering, Procurement and Construction model through a competitive bidding process.

Authorities have already secured a letter of intent from K-Electric, while the bidding process for Engineering, Procurement and Construction contractors is currently under way.

According to the documents, the project site near major industrial zones is expected to facilitate efficient transmission of electricity to high-demand areas.

Unlike conventional solar projects, the floating solar facility will utilise the lake’s water surface, reducing land-use requirements while improving operational efficiency.

The project is estimated to offer an internal rate of return of 13.94%, with an estimated tariff of 3.98 United States cents per kilowatt-hour.

The financing structure includes $182.72 million in debt financing and $60.91 million in equity investment.

Officials said the project is also expected to create employment opportunities during construction and operational phases.