Pakistan is preparing to launch a 500-megawatt floating solar power project at Keenjhar Lake in Sindh, a move that could mark a significant step in the country's effort to expand renewable energy generation, reduce dependence on imported fossil fuels and advance its emission reduction commitments.

According to official documents, the project carries an estimated cost of $243.63 million and is expected to generate approximately 861.91 gigawatt-hours of electricity annually. The facility will operate with a projected capacity factor of 19.6 percent and supply electricity to K-Electric under a long-term power purchase agreement (PPA).

The initiative forms part of broader efforts to align the energy sector with Pakistan's 2030 emissions reduction objectives while diversifying the country's power generation mix. Authorities have already secured a letter of intent from K-Electric, while the process of selecting Engineering, Procurement and Construction (EPC) contractors through competitive bidding is currently underway. The project will be executed under the EPC model.

Unlike conventional solar installations that require large tracts of land, the planned facility will be built on the surface of Keenjhar Lake. Officials say the use of water-based infrastructure will help avoid land-use conflicts while potentially improving operational efficiency.

The location also offers a strategic advantage due to its proximity to major industrial zones, enabling more efficient transmission of renewable electricity to areas with high energy demand.

Financial projections outlined in the official documents indicate an internal rate of return of 13.94 percent. The estimated tariff for electricity generated by the project is 3.98 US cents per kilowatt-hour. The financing structure includes $182.72 million in debt funding and $60.91 million in equity investment, reflecting a combination of borrowed capital and investor participation.

Beyond its contribution to clean energy production, the project is also expected to generate employment opportunities during both the construction phase and subsequent technical operations.

If completed as planned, the Keenjhar Lake floating solar facility will become a notable addition to Pakistan's renewable energy portfolio, combining large-scale solar generation with innovative use of water resources to support growing electricity demand.