ISLAMABAD, May 6, 2026 — The government has planned a 500-megawatt floating solar power project at Keenjhar Lake in Sindh to generate clean electricity and reduce dependence on imported fossil fuels, official sources said.
According to the Associated Press of Pakistan, the $243.63 million project is expected to generate around 861.91 gigawatt-hours of electricity annually, with a capacity factor of 19.6%.
The electricity will be supplied to K-Electric under a long-term Power Purchase Agreement (PPA), helping meet rising demand in Karachi and surrounding industrial zones.
Officials said the project is aligned with Pakistan’s 2030 emissions reduction targets and broader climate resilience goals. It will be developed under the Engineering, Procurement and Construction (EPC) model through competitive bidding, with the tender process already underway.
Authorities have secured a Letter of Intent from K-Electric, while procurement of EPC contractors is in progress.
Unlike conventional solar farms, the floating facility will be installed on water surfaces, reducing land use pressure and improving efficiency due to lower panel temperatures. The location near major industrial areas is expected to ensure efficient transmission of electricity to high-demand zones.
The project is financially structured with $182.72 million in debt and $60.91 million in equity, offering an estimated internal rate of return (IRR) of 13.94% and a tariff of 3.98 US cents per kilowatt-hour.
Funds will be allocated for EPC development, transmission infrastructure, and long-term operations and maintenance. Officials said the project is also expected to generate employment during construction and operational phases.
Aligned with Sustainable Development Goals (SDGs) 7, 9, and 13, the initiative highlights Pakistan’s push toward renewable energy expansion, industrial decarbonisation, and improved climate resilience.