K-Electric (KE) has expressed its eagerness to become a partner in a massive 3,000-Megawatt (MW) Renewable Energy (RE) project proposed by the Saudi company M/s ACWA. However, this project necessitates a Government-to-Government (G2G) arrangement between Pakistan and Saudi Arabia.
In response to a letter from the Power Division dated August 24, 2023, which requested KE’s input regarding the Expression of Interest (EoI) submitted by ACWA Power for the development of up to 3,000 MW of Renewable Energy (RE) projects, the Chief Executive Officer (CEO) of KE, Syed Moonis Abdullah Alvi, stated that KE had already expressed its intention to work as a power off-taker and strategic partner with ACWA in a letter dated July 12, 2023.
The CEO emphasized that KE is committed to providing a robust and bankable payment security arrangement through its Power Purchase Agreement (PPA). This commitment effectively relieves the Government of Pakistan (GoP) from the responsibility of covering the risk associated with ensuring timely payments. Additionally, KE is prepared to take the lead in facilitating local development efforts, which will assist the foreign entity in navigating potential challenges when engaging with local stakeholders.
KE’s current strategic vision includes the integration of approximately 800-1,000 MW of solar electricity into its energy mix over the coming years. To achieve this, the power utility company has initiated a transition toward incorporating large-scale RE projects through competitive bidding. This forward-looking approach underscores KE’s commitment to advancing renewable energy initiatives in Pakistan.
The potential partnership between KE and ACWA in the development of a substantial 3,000 MW RE project reflects a significant step toward increasing Pakistan’s reliance on clean and sustainable energy sources. Such collaborations not only contribute to the country’s energy security but also align with global efforts to combat climate change and promote environmental sustainability.
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