Key Highlights

This study explores the feasibility of K-Electric’s 640 MW least-cost renewable energy (RE) projects that were not recognized in the draft IGCEP 2025 base case, and were evaluated only as a scenario. Using a least-cost planning approach and a scenario-based assessment, the study assesses the impact of 640MW RE as well KE's full RE expansion with Battery Energy Storage System (BESS) on total cost, basket price, generation mix, installed capacity, and KE's reliance on the National Grid. The analysis finds that delaying renewables increases total system costs and KE's basket price. Overall, higher RE penetration with BESS will enable affordable, sustainable, and reliable electricity for KE. NEPRA’s latest MYT determination for KE, which calls for reducing generation costs, along with the recent Strait of Hormuz closure crisis affecting global fuel prices and supplies, makes KE’s RE integration imperative.