In a major push to boost renewable energy and attract foreign investment, the government has included two large-scale solar power projects, totaling 2,800 megawatts (MW), in the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–2035. These projects may be offered to Saudi energy giant M/s ACWA Power under a proposed government-to-government (G2G) agreement.
The National Grid Company of Pakistan Limited (NGC) recently informed the Private Power and Infrastructure Board (PPIB) that land has been earmarked for solar projects in Layyah, Jhang, and Muzaffargarh. The projects are included in the draft IGCEP currently under finalization.
Shah Jahan Mirza, Managing Director of PPIB, said the draft IGCEP includes scenarios with 1,000 MW and 1,800 MW solar PV developments, potentially assignable to ACWA Power. However, he clarified that any offer would be subject to final approval by NEPRA, Pakistan’s energy regulator.
The project had faced setbacks last year when ACWA Power declined to sign agreements, citing security concerns. However, renewed interest followed a visit by Saudi investors to Pakistan and discussions with the Special Investment Facilitation Council (SIFC). Pakistan’s embassy in Riyadh remains in contact with ACWA.
Despite progress, Saudi concerns over the treatment of M/s Al-Jomaih an investor in K-Electric have led to continued caution. Deputy Prime Minister Ishaq Dar is now handling the matter. The inclusion reflects Pakistan’s effort to expand clean energy, though investor confidence hinges on political and regulatory clarity.
