Karachi, May 06, 2024: While Pakistan contributes less than 1% towards global carbon emissions, a combination of macroeconomic and environmental factors is accelerating the energy sector’s increased induction of renewable energy which would simultaneously enable access to affordable and sustainable energy for a growing customer base. In a power-packed roadshow featuring about 100 local and international institutions, KE showcased its efforts as a first mover to establish 640 MW renewable energy across its service territory. This is part of the utility’s vision to achieve a 30% share of renewable energy generation in its mix by 2030.
The Governments of Balochistan and Sindh are collaborating with KE to allocate land for its solar projects with capacities of 150 MW and 270 MW respectively. In addition, a 220 MW hybrid (wind and solar) project at Dhabeji, Sindh is also part of the bidding program.
Since privatisation, KE has invested heavily in driving efficiency across its value chain, providing the impetus for Karachi and adjoining areas to grow into a bustling megalopolis. In this period, KE has reduced transmission and distribution losses by half from 34% to 15%, while doubling its customer base and power consumption. Looking to FY30, KE predicts a 30% growth in its customer base driving a power demand of 5,000 MW, which it intends to fulfill with induction of power based on indigenous fuel and renewable sources such as solar, wind, and hydel.
Referring to KE’s success, CEO Moonis Alvi congratulated everyone present at the event: “This is a historic day for us, and those who are a part of this will certainly have a first mover advantage. The local and international interest in our projects, indicated by everyone’s presence today, is a testament to KE’s acceptability as a power purchaser. We are committed to taking care of our responsibility, and to support the government in balancing the sustainable induction of energy with its long-term affordability. In this regard we are grateful to NEPRA for their approvals on these projects, and the support from the Governments of Balochistan and Sindh.”
Chief Strategy Officer at KE, Shahab Qader Khan also echoed the sentiment, sharing that, “Our upcoming projects will not just prepare us for the future but define it. We foresee robust demand and growth in our service area, necessitating the addition of renewable energy projects. With a 100-year legacy behind us, we look forward to the next 25 years with our partners to be marked with many milestones.” He shared.
These 640 MW projects are incorporated in KE’s Power Acquisition Programme (PAP) which showcases the long-term addition of efficient electricity into the generation mix. This is complemented by a USD 2 billion investment plan in transmission and distribution infrastructure, which entails the use of modern technology and equipment to position KE as a utility of the future.
ABOUT K-ELECTRIC:
K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas. The majority shares (66.4%) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding), Kuwait, and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan is also a shareholder (24.36%) in the Company while the remaining are listed as free float shares.