Pakistan to Launch 500MW Floating Solar Project at Keenjhar Lake
The government of Pakistan has announced plans to develop a 500-megawatt (MW) floating solar power project on Keenjhar Lake in Sindh, aiming to boost renewable energy production and reduce reliance on imported fossil fuels.
Costing an estimated $243.63 million, the project is expected to generate around 861.91 gigawatt-hours (GWh) of electricity annually with a capacity factor of 19.6 percent. The electricity produced will be supplied to K-Electric under a long-term power purchase agreement (PPA), according to the officials involved.
This initiative is part of Pakistan’s broader efforts to meet its 2030 emission reduction targets by increasing the share of renewable energy in its power mix. The move also addresses rising energy security concerns and the impact of high fuel import costs on the national economy.
The project will be executed using an Engineering, Procurement, and Construction (EPC) model. The government has secured a letter of intent from K-Electric, and the bidding process for selecting EPC contractors is currently underway.
Unlike traditional land-based solar farms, this project will utilize the surface of Keenjhar Lake for solar panel installation, thereby avoiding major land acquisition challenges. Officials noted that the water’s cooling effect may also enhance the efficiency of the solar panels.
The location’s proximity to key industrial zones is expected to facilitate efficient transmission of electricity to urban and industrial areas with high power demand.
Financial analysis projects an internal rate of return (IRR) of approximately 13.94 percent, with the tariff for electricity generation estimated at 3.98 US cents per kilowatt-hour. The financing structure comprises roughly $182.72 million in debt and $60.91 million in equity investments.
Moreover, the project is anticipated to create employment opportunities both during the construction phase and in ongoing operations and maintenance, particularly in technical roles.
This floating solar power initiative represents a significant development in Pakistan’s renewable energy landscape as the country looks to diversify its energy sources and strengthen energy security.