Key Takeaways
- Nepra has granted generation concurrence to Aerem Energy for a hybrid renewable energy project.
- The project, with an installed capacity of 269MW, will be developed near Dhabeji in District Thatta.
- It is part of K-Electric’s Power Acquisition Programme aimed at diversifying its generation mix.
Nepra has approved the construction of a 269MW hybrid renewable energy project by Aerem Energy (Private) Limited, marking a significant step towards Pakistan's transition to cleaner energy sources. The project will be developed near Dhabeji in District Thatta, Sindh, and is part of K-Electric’s broader Power Acquisition Programme (PAP).
According to an official determination issued on July 17, 2026, Nepra accorded concurrence under Section 14(B)(5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. The project will integrate wind and solar technologies, leveraging the strong wind corridor in the Gharo–Jhimpir region alongside solar irradiation to ensure optimal energy generation.
The consortium led by JCM Power Canada emerged as the lowest bidder and subsequently incorporated AEREPL as a Special Purpose Vehicle (SPV) to execute the project. The hybrid facility will comprise approximately 175MW of wind power and 94MW of solar photovoltaic capacity, with an estimated cost of USD 251 million.
K-Electric highlighted that the project achieved a record-low tariff of Rs8.9189 per kWh (3.0899 US cents) and is expected to generate significant savings—estimated at Rs176 billion over its life—by displacing expensive thermal generation. The utility also projected foreign exchange savings of nearly USD 986 million.
The Energy Department of the Government of Sindh strongly supported the initiative, noting the province’s vast untapped renewable energy potential. It emphasized that such projects contribute to energy security and reduce exposure to volatile global fuel prices, while offering environmental and socio-economic benefits, including job creation and local development.
With this approval, Pakistan takes another step toward its renewable energy targets as policymakers increasingly push for indigenous, fuel-free generation to address the challenges of circular debt, high tariffs, and energy security. The project is expected to reduce greenhouse gas emissions, improve energy affordability, and enhance the resilience of the power system.
Nepra noted that the approval will enable the project sponsors to move towards financial close and commence construction, subject to compliance with regulatory requirements, including the grid code and environmental standards. The authority observed that the project aligns with national renewable energy policies.
