Currently, as the Steam Turbine-16 and its associated generator remain out of service following the July 2022 fire, the plant operates in open-cycle mode at roughly 450 MW, ranking it at 11th in the dispatch queue with expensive power. Once restored to full combined-cycle operation, the plant will generate its designed 747 MW while improving its merit-order standing to approximately 7th, giving the system operator a larger block of lower-cost energy to displace pricier alternatives.
Following a detailed technical study and engineering review, the procurement process for rehabilitation of the damaged steam turbine has now been formally initiated. Targetted commissioning date of the repair works in December 2028.
The Power Division conducted comprehensive integrity assessments, culminating in a focused EPC-turnkey procurement package. Following detailed evaluation international competitive bids have been invited for the rehabilitation of ST-16 and allied equipment, with submissions due by 7 October 2026. This marks a decisive step forward in restoring the plant to its full potential.
The additional 297 MW of generation capability alone represents a 66 percent increase over current output, ensuring that Pakistan gets the maximum possible value from its existing generation assets.
Beyond the direct financial savings, the project holds strategic value for Pakistan's national grid. Guddu sits at a critical junction of the transmission network and the north-south power flow corridor, so bringing the plant back to full capacity will enhance operational resilience and flexibility. The Power Division's proactive approach underscores the government's commitment to maximising existing assets, improving efficiency, and delivering tangible value to consumers without depending solely on new generation infrastructure.
