ISLAMABAD: The government’s ongoing investigation into Independent Power Producers (IPPs), intended to pressure them to lower electricity costs, has reportedly damaged investor confidence in the power sector.
A lack of investor interest was evident during K-Electric’s (KE) bidding for two new renewable energy projects aimed at injecting more affordable renewable energy into the grid. This hesitance is attributed to the company’s ongoing criticism for relying heavily on expensive thermal energy.
So far, only Kot Addu Power Company (KAPCO) has submitted a bid for the 120 MW Deh Halkani project, while both KAPCO and JCM-GHARO submitted bids for the 150 MW Deh Metha Ghar project.
On September 24, 2024, KE announced that it had received seven bids for Pakistan’s first 220 MW hybrid wind-solar project in Dhabeji, Sindh. Building on this momentum, the company marked another significant milestone with the opening of financial bids at a private event in Karachi. JCM Power, a Canadian-based renewable energy company, emerged as the lowest bidder with a proposed tariff of PKR 8.9189 per unit, setting a new precedent in the country’s renewable energy sector.
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