Govt announces 500MW floating solar project at Keenjhar Lake

The government is planning a 500-megawatt floating solar power project at Keenjhar Lake to increase renewable energy production and reduce the country’s dependence on imported fuel.

The project is expected to cost around $243.63 million and will produce about 861.91 gigawatt-hours of electricity every year. The electricity generated from the project will be supplied to K-Electric under a long-term agreement.

Officials said the project is part of Pakistan’s plan to increase the use of clean energy and meet its 2030 emission reduction targets. The government is also trying to reduce pressure caused by rising fuel import costs and energy security challenges.

The project will be developed through the Engineering, Procurement, and Construction (EPC) model using a competitive bidding process. Authorities have already received a letter of intent from K-Electric, while the process of selecting EPC contractors is ongoing.

Unlike traditional solar farms built on land, this project will install solar panels on the surface of Keenjhar Lake. Officials say this method will help avoid land acquisition problems. They also explained that water can help keep the solar panels cooler, which may improve their performance and efficiency.

The lake’s location near important industrial areas is also expected to help in the smooth transmission of electricity to cities and industries with high power demand.

According to project documents, the project is expected to provide a return rate of 13.94 percent, while the estimated electricity tariff is 3.98 US cents per kilowatt-hour.

The financing plan includes about $182.72 million in loans and nearly $60.91 million in equity investment.

Officials added that the project is also expected to create jobs during construction and after operations begin, especially in technical and maintenance-related work.