ISLAMABAD: The government is planning a 500-megawatt floating solar power project at Keenjhar Lake in Sindh as part of efforts to expand clean energy generation and reduce dependence on imported fossil fuels, according to official documents.
The project, estimated to cost $243.63 million, is expected to generate approximately 861.91 gigawatt-hours of electricity annually with a capacity factor of 19.6%. The electricity produced will be supplied to K-Electric under a long-term power purchase agreement (PPA), supporting Pakistan’s climate and emission reduction targets for 2030.
The floating solar initiative will be developed through the Engineering, Procurement and Construction (EPC) model, with contractors to be selected through a competitive bidding process. Authorities have already secured a letter of intent from K-Electric, while the bidding process for EPC contractors is currently underway.
Located near major industrial zones, the project is strategically positioned to ensure efficient transmission of renewable electricity to high-demand areas. Unlike conventional ground-mounted solar plants, the floating solar facility will utilise water surfaces, helping avoid land-use conflicts while also improving energy generation efficiency.
According to project documents, the initiative offers an estimated internal rate of return (IRR) of 13.94%, with a projected tariff of 3.98 US cents per kilowatt-hour. The financing structure comprises $182.72 million in debt financing and $60.91 million in equity investment.
Besides contributing to Pakistan’s renewable energy transition, the project is also expected to create employment opportunities during both the construction and operational phases, particularly in technical and engineering fields.
