Solar Power Boom in Pakistan

Jul 10

Falling solar panel prices and soaring rates for grid electricity are driving a renewable power boom in Pakistan. A second factor spurring the growth in clean energy installations is the requirement of major western apparel brands for garments and textile manufacturers to switch to clean energy. As a result, the solar panel imports in the country jumped from 2,800 MW in 2022 to 5,000 MW in 2023, in spite of stringent import controls imposed by the government. Solar imports are on track to reach 12,000 MW in 2024, according to solar installers. The total current installed generation capacity in Pakistan is around 40,000 MW. Grid electricity demand in Pakistan plunged in 2023 by nearly a sixth and a decline in 2024 would mark the first time in 16 years that annual electricity use has fallen consecutively, data from energy think tank Ember showed, according to Reuters.

Pakistan Solar Panel Imports. Source: PV Magazine

Omar Malik, the CEO of Shams Power, a major solar system contractor in Pakistan, was recently quoted by PV Magazine as saying: “In 2022, 2.8 GW of solar panels were imported into Pakistan. In 2023, about 5 GW, despite the import controls, and this year the prediction is for up to 12 GW”.

Aamir Hussain, chairman Pakistan Alternative Energy Association, told Arab News that solar panels of around 1,800 MW were purchased and installed last year, which was expected to jump to 3,000 MW this year due to the lower prices of the panels and increased customer demand.

“Pakistan will be spending over $3.5 billion [this year] on solar panel imports only as this doesn’t include import of batteries, inverters and other auxiliary items,” Hussain said. “Pakistan needs to follow consistent policies regarding renewable energy to meet its national and international obligations for the greenhouse gas emissions.”

Pakistan's Monthly Solar Imports in millions of US$. Source: Bloomberg

Japanese publication Nikkei Asia recently reported seeing residential building rooftops covered with solar panels in Islamabad. It also reported proliferation of rooftop solar in small towns and villages across the country. In particular, the Nikkei story mentioned the remote village of Kardigap with a population of 5,000, in Balochistan province, where solar panels are becoming more common on the rooftops of houses.

Responding to western apparel brands' demand for sustainability, a number of large Pakistani textile manufacturers are switching to clean energy, particularly solar. Tayyab Group of Industries (TGOIs), a major textile manufacturer, has recently signed an MOU to install a 20 MW solar system for its needs. Gul Ahmed Textile Mills Limited announced recently that it will install a 17.1 MW roof-top solar power plant to meet its energy needs.

While rapid uptake of solar is good news for the planet, it does create a major fiscal issue for the Pakistani government struggling to pay for power produced by the independent power producers (IPPs). The IPPs, many of them Chinese, secured a guaranteed return on investment indexed to the U.S. dollar, plus payment for fixed capacity charges -- covering their debt servicing and other fixed costs -- regardless of whether the power plants are operational, according to Nikkei Asia. As the demand for the grid power from the IPPs declines with rising solar, the taxpayers are still on the hook for the unused installed capacity charges running into billions of dollars. Higher power tariffs and taxes will only make the situation worse.

Capping Net Metering power and reducing payments for supplying excess power to the grid are not going to solve the problem either. It will only encourage more consumers to switch to rooftop solar and use less electricity from the grid. Self consumption of the rooftop solar power saves significant energy costs for the consumer.

It seems the only way forward for the Pakistan government is to renegotiate the terms with the IPPs to significantly reduce grid power costs to address the growing cost gap between rooftop solar and the grid power.

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Riaz Haq

Atom Power is the first Pakistani company to locally manufacture lithium-ion cells. The company's manufacturing and IRD operations are based in Pakistan, which allows them to quickly respond to customer needs and adapt to market demands.

Other companies in Pakistan that manufacture lithium-ion batteries include:
Zhejiang Narada Power Source Co., Ltd.
Atlas Battery Limited
Phoenix Battery Ltd.
Exide Pakistan Limited
Li-Power Green Energy (Pvt.) Ltd.

15 hours ago
Riaz Haq

Atom Power (PRIVATE) Limited is set to revolutionize the energy storage landscape in Pakistan and beyond with the launch of locally assembled lithium-ion batteries.

https://propakistani.pk/2024/12/03/atom-power-launches-pakistans-fi...

The company has started assembling lithium-ion cells at its factory in Karachi and will unveil its cutting-edge cell-level manufacturing facility by Q2 2025, marking a significant milestone in the country’s industrial and energy sectors. That being said, in phase 2, these lithium-ion cells will be produced using locally purified graphite and other materials, enhancing both the sustainability and efficiency of the product.

Atom Power is a Wavetec subsidiary which is a key player in the tech industry with 3 decades of experience delivering successful, intelligent customer experience and self-service solutions to more than 70 countries worldwide. Wavetec’s expertise in building scalable, reliable solutions adds a crucial layer of credibility to Atom Power’s ambitious local and international growth plans.

“At Atom Power, we are committed to providing, made in Pakistan, smart, reliable, and environmentally friendly energy storage solutions that are accessible to all,” said Waqas Ahmad, CEO of Atom Power. “With our local manufacturing capabilities, we can ensure that these products meet the highest standards of quality and reliability while adapting quickly to market needs.”

The development of these advanced energy-efficient batteries is the result of extensive research and innovation led by a team of material scientists and chemical engineers under the guidance of Dr. Kamran, Head of R&D at Atom Power. Dr. Kamran, who holds a PhD in Energy Storage Technology, emphasised, “Our R&D team is focused on sourcing materials locally, a strategy that will reduce reliance on imports and support Pakistan’s growing economy. Early progress in this area holds great promise for Pakistan’s position in the global energy market.”

Atom Power’s locally assembled lithium-ion batteries will not only drive the transition to a sustainable energy future but will also enhance the efficiency of renewable energy systems, particularly solar power storage. These high-capacity, long-lasting batteries will be vital for industries, businesses, and households, helping to reduce energy costs, increase reliability in off-grid regions, and make a positive impact on the environment.

One of the major concerns for customers when purchasing batteries is related to warranty and support. Atom Power addresses this by having both its plant and R&D operations based in Pakistan. This strategic setup ensures excellent customer service, faster response times, and the flexibility to adapt to market conditions quickly, giving customers the confidence that they are supported by a local, trustworthy partner.

This ground breaking achievement not only represents a technological leap but also positions Atom Power as a leader in Pakistan’s push for energy security, industrial growth, and environmental sustainability. By embracing innovation, Atom Power is committed to contributing to sustainable energy solutions, fostering job creation, and advancing Pakistan’s technological capabilities.

With this pioneering effort, Atom Power becomes the first Pakistani company to locally manufacture lithium-ion cells, taking a crucial step toward a self-sufficient and energy-secure future.

15 hours ago
Riaz Haq

Pakistan’s largest independent power producer expands into lithium mining, battery manufacturing

https://www.arabnews.com/node/2577791/pakistan

Hub Power Company’s subsidiary signed a collaboration agreement with Chinese EV giant BYD this year
Its lithium exploration is expected to further boost the manufacturing potential of Pakistan’s auto industry
ISLAMABAD: Pakistan’s largest independent power producer is set to enter lithium mining, battery manufacturing and electric vehicle (EV) production under Pakistan’s Special Investment Facilitation Council (SIFC), according to state media on Saturday.
Established in 1991, Hub Power Company (Hubco) has an installed generation capacity exceeding 3,500 megawatts and plans to diversify in other areas.
The planned initiatives, facilitated by the SIFC, a hybrid civil-military body established last year to assist foreign investors, aim to meet the country’s growing demand for batteries and electric vehicles.
A lithium exploration and battery production project is expected to reach completion in 12 to 18 months, meeting the rising demand for rechargeable batteries used in mobile phones, laptops and automobiles.
“Hub Power Company Limited’s exploration of lithium in Pakistan will further increase the manufacturing potential in the country’s auto industry,” Radio Pakistan reported.
“Work on establishing a manufacturing plant to produce electric vehicles in Pakistan is already underway, which will manufacture fifty thousand electric vehicles annually,” it added.
Earlier this year in June, Hubco’s subsidiary Mega Motor Company signed a collaboration agreement with Chinese EV giant BYD Auto Industry to assemble EVs in Pakistan.
Plans for the EV plant, with a projected annual production of 50,000 vehicles, include 30 to 40 percent allocated for export to markets in Australia and Africa.
HUBCO operates a diverse portfolio of power plants, including oil-fired, coal-based and hydropower facilities, and is also involved in coal mining.
Its new initiatives are expected to strengthen its market position, create employment opportunities and boost domestic capacity for battery production for electronic devices.

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Solar Power Boom in Pakistan

Riaz Haq

Riaz Haq

Riaz Haq