ISLAMABAD: The National Electric Power Regulatory Authority has approved the generation of concurrence for Aerem Energy (Private) Limited in the development of a 269 MW hybrid power generation plant using wind and solar energy at Goth Dhori Jokhio, Dhabeji in District Thatta to provide Pakistan with one of the most financially attractive renewable energy projects in the history of the power sector of the nation. The record low tariff rate associated with the project is of Rs8.9189/kWh which is equal to 3.0899 US cents only and is expected to produce savings worth Rs176 billion.
The official approval made on July 17, 2026 provides concurrence in accordance with the provisions of Section 14(B)(5) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997.
Selection Process of the Aerem Energy Dhabeji Project
The Aerem Energy Dhabeji project is a hybrid renewable project that has been selected on the basis of competitive bidding as part of the Power Acquisition Programme by K-Electric, which has been approved by Nepra in May 2024. The inclusion of a site-neutral hybrid project within the Power Acquisition Program is a strategy adopted by K-Electric to add more diversity to its energy mix.
The consortium headed by JCM Power Canada was declared the successful bid after the bidding process was completed. The company formed AEREPL as the Special Purpose Vehicle (SPV) to undertake the venture. The formation of an SPV is common practice for large project financing deals, whereby the assets and cash flows of the projects remain separated from those of the parent companies.
Technology Combination: Wind and Solar Power at Dhabeji
The Aerem Energy Dhabeji hybrid renewable project uses two different technologies which complement each other in order to increase capacity factor:
- Wind (approximately 175 MW): The Dhabeji site lies within the Gharo-Jhimpir wind regime that is one of the most developed regions for wind energy production in Pakistan. This region has quite a long history of commercial operation of wind farms.
- Solar PV (about 94MW): Solar PV capacity works with wind generation because it harnesses the maximum solar radiation during daytime when wind speed is relatively low. The combination helps in balancing the generation profile and enhancing the effective capacity of the project to K-Electric’s system.
The combination integration increases the reliability of the system and decreases the dependency on foreign fuel sources – solving two of the biggest concerns of K-Electric at one go.
Saving Rs176 Billion – The Economic Argument
The economic case for the adoption of hybrid renewable energy projects in the Pakistani electricity sector through the Aerem Energy Dhabeji hybrid renewable energy project is simply based on the displacement arithmetic. Each kilowatt hour of energy produced at the cost of Rs8.9189 from the renewable sources displaces an alternative kilowatt hour of energy obtained by using imported fuels that carry prices in US dollars and geopolitical risks.
Saving potential of K-Electric:
- Rs176 billion total savings for the duration of the project’s lifetime: substitute for high-cost thermal power production
- Foreign exchange saving of USD986 million: save on Pakistan’s oil imports
Support from the Sindh Government for the Initiative
The Energy Department of the Government of Sindh expressed their support to the hybrid renewable energy project by Aerem Energy Dhabeji in their applications to Nepra with regard to the huge untapped potential of the province in terms of renewable energy generation, energy security, less dependency on fuel prices, and socio-economic benefits.
What Next?
The approval of Nepra will now allow AEREPL to move towards financial close, which means that they will now approach banks locally and internationally for the debt portion of 80% of the cost of USD 251 million project. Once the financial close is done, construction can begin.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
