K-Electric’s Ambitious Renewable Energy Roadmap

Rs. 484 billion Investment Journey towards 30% Green Power Generation

K-Electric (KE) plans to achieve 30 percent of its total power generation from renewable sources within
seven years, as part of a Rs. 484 billion investment strategy. Anticipating a surge in power demand to
5000 MW in the same timeframe, KE aims to heavily rely on renewable energy sources, according to
officials revealing the investment plan details. Currently, KE derives 94 percent of its electricity from
imported thermal sources, while local thermal and renewables contribute three percent each. The
investment plan outlines a reduction in imported thermal power to 51 percent by 2030, with renewable
energy’s share rising to 28 percent and local thermal making up 21 percent. Over the next seven years, KE
plans to augment its power generation capacity by 2172 MW.

This includes adding 500 MW of solar power in 2025, 330 MW of domestically sourced fuel-based power in 2026, and 330 MW of indigenous fuel and 200 MW of solar in 2027. It also involves introducing 100 MW of wind power in 2028, 330 MW of indigenous fuel, 200 MW of solar, and 82 MW of hydel power in 2029, and concluding with 100 MW of wind power in 2030. This plan builds on KE’s past investments, which totaled Rs. 474 billion from 2005 to 2022. Since its privatization, KE has doubled its customer base to 3.4 million and halved transmission and distribution (T&D) losses, surpassing benchmarks set by NEPRA. During the last seventeen years, KE’s power supply increased from 2200 MW to 3380 MW, and generation efficiency rose from 30 percent to 39 percent. The number of grids, distribution transformers, and feeders also experienced significant growth. KE’s future investment plan was submitted to Nepra months ago and is currently undergoing approval hearings.