KE’s 640MW renewable projects excluded from draft IGCEP base case

K-Electric's (KE) 640-megawatt renewable energy portfolio has been excluded from the base case of the draft Indicative Generation Capacity Expansion Plan (IGCEP) 2025, despite securing regulatory approvals and competitive tariffs, raising concerns over electricity costs, energy security and investor confidence, according to a new study.

 

The report, jointly released by Renewables First and the Policy Research Institute for Equitable Development (PRIED), said KE completed competitive auctions for 640MW of solar and wind projects in 2024, with tariffs ranging from Rs8.9 to Rs11.2 per unit, and received approval from the National Electric Power Regulatory Authority (Nepra).

 

The projects include a 150MW solar plant at Bela, a 220MW hybrid wind-solar project at Dhabeji, and a 270MW solar project at Deh Metha Ghar and Deh Halkani. However, they were placed in an alternative scenario rather than the base case of the draft IGCEP.

 

Using power system modelling, the study estimated that commissioning the projects from FY2027 could lower KE's cumulative system costs by around $432 million between FY2025 and FY2035, while reducing the average electricity basket price from about 13 US cents to 12.58 US cents per kilowatt-hour.

 

The report also projected that expanding KE's renewable capacity to over 3.8GW, alongside 200MW of battery energy storage systems (BESS) by FY2035, could generate cumulative savings of nearly $1.56 billion and reduce the utility's dependence on imported electricity from the national grid to below 40%.

 

According to the study, excluding already-approved renewable projects from the national generation plan creates regulatory uncertainty, weakens investor confidence, and delays Pakistan's transition toward lower-cost and more secure electricity generation.