K-Electric solar projects attract record low bids, promise savings for consumers
K-Electric (KE) is advancing its renewable energy goals with its 150 MW Winder and Bela solar projects, achieving record low bids in a competitive process. The progress was highlighted during a public hearing held by the National Electric Power Regulatory Authority (Nepra) on Wednesday, where KE’s renewable energy efforts received praise for their forward-thinking approach.
The competitive bidding process saw the lowest bid for the 50 MW Winder project at Rs11.65 per unit and Rs11.20 per unit for the 100 MW Bela project. Both bids were submitted by Master Textile Mills Ltd. Shahab Qader, KE’s Chief Strategy Officer, emphasized that receiving eight bids for Winder and seven for Bela is a remarkable achievement, especially given Pakistan’s challenges in attracting renewable energy investments.
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These projects are part of KE’s broader plan to integrate 1,300 MW of renewable energy into its portfolio, with the first phase targeting a cumulative capacity of 640 MW.
Qader shared that the solar projects are expected to save Karachi’s consumers approximately Rs2.5 billion annually by replacing more expensive energy sources with cost-effective solar power. This shift represents a significant step toward sustainable and affordable energy solutions for the city.
Nepra’s hearing addressed key aspects of KE’s Bidding Evaluation Report (BER), including adherence to Nepra Competitive Bidding Tariff Regulations (NCBTR), compliance with directives for prudence checks, market relevance of bid tariffs, justifications for delays in the bidding process, and measures to ensure technical qualifications of bidders.
KE assured Nepra that all regulations were followed. Qader explained that a one-month extension in the bidding process was introduced to enhance competition. Challenges, such as restrictions on Chinese companies in Balochistan, required bidders to explore alternative contracts, while financiers needed additional time to assess the projects.
Responding to suggestions about exploring rooftop solar solutions, Qader noted that while Distribution Companies (DISCOs) currently purchase units from net-metering consumers at Rs27 per unit, the Winder and Bela projects will generate electricity at nearly Rs11 per unit, significantly reducing costs.
Nepra has reserved its decision on KE’s renewable energy proposals pending further evaluation of the bidding and evaluation process.
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