Govt Plans 500MW Floating Solar Project

The government has planned a 500-megawatt floating solar power project at Keenjhar Lake in Sindh to generate renewable energy and reduce dependence on imported fossil fuels.

The project, estimated at $243.63 million, is expected to generate around 861.91 gigawatt-hours of electricity annually with a projected capacity factor of 19.6 percent. The electricity will be supplied to K-Electric under a long-term power purchase agreement.

Officials said the initiative is part of Pakistan’s broader efforts to meet its 2030 emission reduction targets and expand the country’s renewable energy mix amid rising fuel import costs and energy security concerns.

The project will be developed through the Engineering, Procurement and Construction model using competitive bidding. Authorities have already secured a letter of intent from K Electric, while the bidding process for EPC contractors is currently underway.

Unlike traditional solar projects, the facility will use the surface of Keenjhar Lake for installation, helping avoid land acquisition challenges while also improving panel efficiency through the cooling effect of water.

The site’s proximity to major industrial zones is expected to support efficient transmission of electricity to high-demand urban and industrial areas.

According to project documents, the floating solar initiative offers an estimated internal rate of return of 13.94 percent, while the projected tariff stands at 3.98 US cents per kilowatt hour.

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

Officials said the project is also expected to generate employment opportunities during both the construction and operational phases, particularly in technical and maintenance-related roles.