Islamabad: The Power Division has announced the formal initiation of the procurement process to rehabilitate the steam turbine of the Guddu 747 Power Plant. This move could lead to a reduction in electricity generation costs from PKR 13.87 to PKR 9.68 per unit and unlock an additional 297 megawatts of capacity.

According to Press Information Department, the steam turbine and its associated generator have been out of service since a fire in July 2022, causing the plant to operate in an open-cycle mode at approximately 450 MW. This has placed it 11th in the dispatch queue, with expensive power offerings. A restoration to full combined-cycle operation would allow the plant to reach its designed output of 747 MW and improve its merit-order standing to about 7th.

The Power Division, after conducting comprehensive integrity assessments, has initiated an EPC-turnkey procurement package for the rehabilitation of the damaged turbine. International competitive bids have been invited, with submissions due by October 7, 2026, and a target commissioning date set for December 2028.

The rehabilitation project is expected to increase the plant’s output by 66 percent, enhancing the value derived from existing generation assets. Strategically, Guddu’s location at a critical junction of the transmission network will bolster operational resilience and flexibility, strengthening the national grid. This initiative highlights the government’s commitment to maximizing existing resources and delivering value to consumers.