Guddu ST-16 revival set to unlock 297MW additional power

August 31, 2026 (MLN): Rehabilitation of the fire-damaged Steam Turbine-16 at the Guddu 747 Power Plant could bring generation costs down from Rs13.87 to Rs9.68 per unit, a reduction of Rs4.19 per unit, while unlocking an additional 297 MW of capacity, a 66% increase over current output, ensuring the country draws maximum value from its existing generation assets.

The plant has operated in open-cycle mode at roughly 450 MW since the Steam Turbine-16 and its associated generator went out of service following a fire in July 2022, leaving it ranked 11th in the dispatch queue with expensive power, according to the press release.

Once restored to full combined-cycle operation, the plant will generate its designed 747 MW, improving its merit-order standing to approximately 7th and giving the system operator a larger block of lower-cost energy to displace pricier alternatives.

Following a detailed technical study and engineering review, the procurement process for rehabilitation of the damaged steam turbine has now been formally initiated, with a targeted commissioning date of December 2028.

Comprehensive integrity assessments culminated in a focused EPC-turnkey procurement package, and following detailed evaluation, international competitive bids have been invited for the rehabilitation of ST-16 and allied equipment, with submissions due by 7 October 2026, marking a decisive step forward in restoring the plant to its full potential.

Beyond the direct financial savings, the project holds strategic value for Pakistan's national grid. Guddu sits at a critical junction of the transmission network and the north-south power flow corridor, so bringing the plant back to full capacity will enhance operational resilience and flexibility.

The approach taken reflects the government's commitment to maximising existing assets, improving efficiency, and delivering tangible value to consumers without depending solely on new generation infrastructure.

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