Rehabilitating the fire-damaged Steam Turbine-16 at Guddu 747 Power Plant could significantly reduce electricity generation costs in Pakistan.
The project could lower generation costs from Rs13.87 to Rs9.68 per unit. At the same time, it could add 297 MW to the plant’s current output.
This would represent a 66% increase in generation capacity compared with the plant’s existing output. The rehabilitation could also help Pakistan make better use of its existing power generation infrastructure.
Guddu Plant Could Return to Full Capacity
Guddu Power Plant has operated in open-cycle mode at around 450 MW since July 2022. A fire damaged Steam Turbine-16 and its associated generator, forcing both units out of service.
As a result, the plant currently ranks around 11th in the power dispatch queue. Its relatively high generation cost has also affected its position in the system.
However, restoring the plant to full combined-cycle operation could change its role significantly. The facility could once again generate its designed capacity of 747 MW.
Furthermore, its improved efficiency could move the plant to around seventh place in the merit order. This would allow the system operator to use more lower-cost electricity and reduce reliance on expensive alternatives.
Rehabilitation Procurement Process Begins
Following a detailed technical study and engineering assessment, authorities have formally started the procurement process.
The rehabilitation package covers Steam Turbine-16 and associated equipment. After completing integrity assessments, officials prepared a focused EPC turnkey procurement package.
International competitive bidding has now opened for the rehabilitation project. Interested bidders must submit their proposals by October 7, 2026.
Authorities have targeted December 2028 for commissioning the restored turbine. Once completed, the project could significantly improve the plant’s operational performance.
Project Could Strengthen National Grid
The rehabilitation also carries strategic importance for Pakistan’s power system. Guddu sits at an important point within the national transmission network and the north-south power flow corridor.
Therefore, restoring the plant’s full capacity could improve grid flexibility and operational resilience. It could also provide the system operator with an additional block of relatively lower-cost electricity.
Beyond direct savings, the project reflects a broader focus on improving existing power assets. Instead of relying entirely on new generation projects, authorities can increase output from infrastructure already in place.
Overall, restoring Steam Turbine-16 could deliver both financial and operational benefits. Lower generation costs and an additional 297 MW could help Pakistan use its existing power resources more efficiently while providing greater value to consumers.
