ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has granted generation concurrence to Aerem Energy (Private) Limited (AEREPL) for the development of a 269MW hybrid wind and solar power project at Dhabeji in District Thatta, Sindh, marking another significant step in Pakistan’s transition towards renewable energy.
In its determination issued on July 17, 2026, the regulator accorded concurrence under Section 14(B)(5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997, allowing AEREPL to proceed with the proposed renewable energy facility.
The project will be established at Goth Dhori Jokhio near Dhabeji and forms part of K-Electric’s Power Acquisition Programme (PAP), which seeks to diversify the utility’s generation portfolio by increasing the share of indigenous renewable energy.
According to project documents, Nepra had approved a site-neutral hybrid renewable energy project under K-Electric’s PAP in May 2024. Following a competitive bidding process, a consortium led by JCM Power Canada emerged as the lowest bidder and subsequently incorporated Aerem Energy (Private) Limited as a Special Purpose Vehicle (SPV) to implement the project.
The hybrid facility will combine approximately 175MW of wind power with 94MW of solar photovoltaic (PV) generation, capitalising on the strong wind resources of the Gharo–Jhimpir wind corridor and the region’s high solar irradiance to deliver a more reliable and efficient renewable energy supply.
K-Electric informed the regulator that the project achieved a record-low generation tariff of Rs8.9189 per kWh (3.0899 US cents) through competitive bidding. The utility estimates the project will generate lifetime savings of around Rs176 billion by replacing costly thermal power generation, while reducing the country’s fuel import bill through foreign exchange savings of nearly US$986 million.
The Government of Sindh’s Energy Department also supported the project, highlighting the province’s vast renewable energy potential. It noted that expanding clean energy generation would strengthen Pakistan’s energy security, reduce dependence on imported fuels, shield consumers from global fuel price volatility, and create employment and economic opportunities in local communities.
The project carries an estimated investment of US$251 million, with financing expected through a structure comprising 80 percent debt and 20 percent equity. The sponsors are currently engaging local and international financial institutions to secure funding.
Nepra observed that the approval will enable the project sponsors to proceed towards financial close and begin construction, subject to compliance with all applicable regulatory, environmental and grid code requirements.
The regulator further noted that the project supports Pakistan’s renewable energy objectives by promoting indigenous, fuel-free electricity generation, reducing greenhouse gas emissions, improving long-term energy affordability and enhancing the resilience of the national power system.
In a separate determination, Nepra also approved a generation tariff of Rs8.9189 per kWh for the project, paving the way for its commercial implementation.
Story by Mushtaq Ghumman
