K-Electric set to double Pakistan’s solar capacity

August 19, 2024 (MLN): Karachi’s main power utility K-Electric Ltd. (PSX: KEL) plans to nearly double Pakistan’s solar capacity by adding 640 megawatts of clean energy to its portfolio in the next two years, Bloomberg reported, citing a company executive.

The bidding process for the first few projects opens on August 19 and will close next month, Chief Strategy Officer Shahab Qader Khan told Bloomberg in an interview.

Developers will compete for multiple solar projects that will sell electricity to K-Electric, he said, adding that the portfolio will include 200 megawatts of hybrid solar-wind generation.

Pakistan is historically plagued by high power prices, largely due to the country’s reliance on costly fossil fuel imports.

After a 155% increase since 2021, monthly bills costing up to $700 outweigh rent expenses for many families.

Doubling the share of solar energy in the mix, currently sitting at just 1% with a total capacity of 630 megawatts, may help lower the nation’s overall import bill.

Over the next five years, K-Electric, the sole distributor of electricity in Karachi and nearby areas, aims to add about 1,200 megawatts of renewable energy projects, while simultaneously phasing down expensive sources such as liquefied natural gas and fuel oil, said Khan.

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