K-Electric (KE) has received the lowest tariff bid from Kot Addu Power Company Limited (KAPCO) for its 120-megawatt solar project in Karachi, according to a disclosure by KAPCO to the Pakistan Stock Exchange (PSX).
KAPCO reported that it submitted a bid of Rs9.8319 per kilowatt-hour (kWh), equivalent to 3.4061 cents/kWh at a reference exchange rate of USD/PKR 288.65, for the proposed solar project to be established in Deh Halkani, District West, Karachi.
KE conducted competitive bidding under the NEPRA (Electric Power Procurement Regulations) 2022.
The formal award of the project to KAPCO will require NEPRA’s approval based on the evaluation report submitted by KE’s auction and evaluation committee.
This follows KE’s earlier receipt of the “country’s lowest tariff bid” of Rs8.9189 per unit from a Canadian renewable energy company for its 220MW hybrid project in Dhabeji, Sindh. The initiatives align with KE’s strategy to increase the share of renewable energy in its power mix to 30% by 2030.
KE, Pakistan’s sole vertically integrated power utility, provides electricity to Karachi and nearby areas. Its majority shares (66.4%) are held by KES Power, a consortium including Saudi Arabia’s Al-Jomaih Power Limited, Kuwait’s National Industries Group (Holding), and the Infrastructure and Growth Capital Fund (IGCF).
KAPCO, headquartered in Kot Addu, Punjab, operates a multi-fuel power station with 15 generating units and a total capacity of 1,600MW.
