Govt plans 500MW floating solar project at Keenjhar Lake

The government has planned a 500MW floating solar power project at Keenjhar Lake in Sindh, according to official documents. The $243.63 million project is expected to supply electricity to K-Electric under a long-term agreement.

ISLAMABAD: The government has planned a 500-megawatt floating solar power project at Keenjhar Lake in Sindh aimed at producing clean and renewable electricity while lowering dependence on imported fossil fuels, according to official documents.

The project carries an estimated cost of $243.63 million and is expected to generate around 861.91 gigawatt-hours of electricity each year. The documents state that the plant is projected to operate with a capacity factor of 19.6%.

Electricity produced by the facility will be supplied to K-Electric under a long-term power purchase agreement. Authorities have already obtained a letter of intent from K-Electric, while the process to select Engineering, Procurement and Construction contractors is under way.

Project structure and financial details
The floating solar initiative is to be executed through the Engineering, Procurement and Construction model, with contractors to be chosen through competitive bidding. Official documents show the project offers an internal rate of return of 13.94%, while the estimated tariff has been set at 3.98 US cents per kilowatt-hour.

The investment plan includes $182.72 million in debt financing and $60.91 million in equity, according to the documents.

The project has been planned in line with Pakistan’s 2030 emissions reduction targets. The official documents say the initiative is intended to support cleaner power generation as the country seeks to expand renewable energy sources.

Location and expected benefits
The facility is planned near major industrial zones, a factor that is expected to help in the efficient transmission of electricity to areas with high demand. The documents note that the use of a water surface for solar generation would avoid conflicts over land use that can arise with conventional solar plants.

According to the official documents, the floating design is also expected to improve energy efficiency compared with traditional land-based solar installations.

In addition to power generation, the project is expected to create jobs during the construction stage as well as in technical operations once the plant becomes operational.

The planned development at Keenjhar Lake adds to the government’s broader push for renewable energy projects intended to diversify the energy mix and reduce the burden of imported fuels on the economy, as outlined in the official documents.

Source:https://www.pakistantoday.com.pk/2026/05/07/govt-plans-500mw-floating-solar-project-at-keenjhar-lake