Sharif unveiled the plaque of the project that has been completed within 27 months costing Rs 3.5 billion, according to an official statement.
The coal-based power plant at Sitara Chemical Industries Ltd is the largest of its kind in the industrial sector of Faisalabad, which was built by private Sitara group of industries.
The plant's boiler is based on Circulating Fluidized Bed Combustion technology having the best automation system.
Continuous emission monitoring system is placed which monitors 24/7 the emission of the gases in the air to protect the environment.
"Such initiatives by the private sector are extremely encouraging and will prove helpful in overcoming the energy shortage in Pakistan," he said.
Sharif government has promised to end perennial power shortages by March 2018 when over 10,000 MW electricity would be added to the national grid.