ISLAMABAD: A million-dollar question is currently under heated debate within government circles that will KE’s renewable energy projects be included in the IGCEP 2025-35, which is in its final stages and set to be unveiled in April 2025, sources told Newzshewz.
The sources revealed that the IGCEP 2025-35 has already been presented to the Prime Minister, SIFC, and the Task Force on Energy, and is nearing finalization. However, the inclusion of KE’s least-cost renewable energy projects remains unresolved, as these projects are not currently classified as least-cost projects. Nevertheless, KE’s team is expected to visit Lahore for a detailed meeting and briefing with top officials from NTDC.
The bidding process for the ongoing 640 MW renewable energy projects was conducted through open competitive bidding. The bid/auction evaluation reports have been submitted to Nepra for approval, but approval is still pending.
K-Electric in its letter to different stakeholders has informed that , the Request for Proposal (RFP) for its renewable projects was approved by Nepra in February and March 2024. Subsequently, KE completed the bidding process for five renewable energy projects, totaling 640 MW across Sindh and Balochistan, including the 150 MW Winder and Bela Solar projects. These projects are part of the approved Indicative Generation Capacity Expansion Plan (IGCEP) 2022 by Nepra and KE’s Power Acquisition Program (PAP), which was approved by the Nepra Authority on May 17, 2024.
KE emphasized that these projects are not only designed to meet the region’s power needs but also to support industrial and agricultural development while creating job opportunities. Additionally, these projects will be the first solar and wind projects in Pakistan to be procured through a competitive bidding process, with the bids representing the lowest tariffs for renewable energy. This achievement marks a significant milestone in Pakistan’s energy sector, fostering a competitive energy market.
“This accomplishment demonstrates KE’s strategic commitment to ensuring energy affordability. These projects will lead to energy savings of approximately Rs 13 billion per annum and foreign exchange savings of $87 million annually, as the need for imported fuels will be reduced,” KE’s letter stated.
KE also expressed gratitude for the support provided by the Government of Balochistan, including land allocation for the 150 MW Winder and Bela solar projects. However, despite these advantages, the Nepra decision on these projects is still pending due to issues related to optimization within the IGCEP 2024 iteration, which is currently under finalization.
The regulator has already conducted public hearings on the renewable energy projects of KE but determinations have not yet been announced perhaps, the regulator is also waiting for the finalization of IGCEP 2025-35.
“The timely approval by Nepra and inclusion of these projects in IGCEP is critical, as bidders have submitted time-bound quotations and bid bonds with only eight months’ validity. Any delays could jeopardize the projects’ expected Commercial Operation Dates (CODs),” KE explained in a letter sent to various public sector stakeholders.
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