NEPRA has approved Pakistan’s lowest-ever electricity tariff for a utility-scale renewable energy project, clearing a rate of Rs8.9189 per kilowatt-hour for a 240-megawatt hybrid wind-solar project near Karachi. The decision marks the country’s first large-scale renewable energy project awarded through a competitive bidding process.

The National Electric Power Regulatory Authority (NEPRA) granted final approval on 17 July to Aerem Energy (Private) Limited for the Dhabeji Grid project in Thatta district, Sindh. K-Electric conducted the competitive bidding process, which produced what the regulator described as a record-low tariff for renewable electricity in Pakistan.

The approved tariff will remain in effect for 25 years under an Energy Purchase Agreement with K-Electric. NEPRA said quarterly adjustments will reflect changes in interest rates, foreign exchange movements and the Secured Overnight Financing Rate (SOFR).

The project combines about 175MW of wind generation with 94MW (DC) of solar photovoltaic capacity. The developers plan to use equipment supplied by Goldwind, Envision, JA Solar and Huawei.

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NEPRA confirmed that the project forms part of the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35 through an addendum submitted by the Independent System and Market Operator. The regulator said the competitive bidding process established the tariff and its subsequent review confirmed the result.

NEPRA said the approved rate represents the lowest tariff ever sanctioned for a renewable energy project in Pakistan. The authority had earlier approved K-Electric’s bid evaluation report in May 2025 after determining that the bidding process was competitive and the tariff was reasonable.

Aerem Energy, a company incorporated in Pakistan, is owned by JCM Power Corporation (51%), Burj Energy International Management Ltd. (30%), and Rana Nasim Ahmed (19%). The consortium will develop the project on approximately 1,674 acres of privately acquired land.

Under the approval, Aerem Energy must achieve financial close within three months of the Energy Purchase Agreement’s approval and complete construction within 18 months. The developer will bear wind and solar resource risks, while K-Electric will reimburse applicable duties and taxes imposed directly on the project company.

The project originated from K-Electric’s Power Acquisition Plan, which NEPRA approved in May 2024. The plan forms part of the IGCEP 2022–31, which allocated 1,050MW of solar and 350MW of wind capacity to the utility.

NEPRA also directed the federal government to publish the approved tariff in the official gazette within 30 days under the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997. If the government misses the deadline, the regulator can issue the notification itself.