Solar Power Boom in Pakistan

[Riaz Haq]

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.

[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.

[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.

[Riaz Haq]

Punjab invites China’s Jinko Solar to set up manufacturing plant in Pakistan

https://www.arabnews.pk/node/2582939/pakistan


Chief Minister Maryam Nawaz Sharif meets Chinese solar company officials in Shanghai during factory visit
Experts say Pakistan has ideal climatic conditions for solar power generation with over nine hours of daily sunlight

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Oracle Power in talks for $1.4b financing of hybrid RE plant in Pakistan | Asian Power

https://asian-power.com/project/exclusive/oracle-power-in-talks-14b...

The 1.3 GW wind and solar plant may start supplying power to 1.2 million houses by 2028.

London-based Oracle Power PLC is in talks with investors so it could start building a $1.4b hybrid renewable energy plant in Pakistan’sGharo-Jhimpir wind corridor next year, according to its CEO.

The project is expected to offer energy-starved citizens more affordable power, whilst increasing the share of clean energy in the South Asiancountry’s power mix, Oracle Power CEO Naheed Memon told Asian Power. “It's not going to be a whole lot, but it will be a reasonable input into the system.”

The 1.3 gigawatt (GW) renewable energy (RE) project spans 2,830 hectares in the Sindh region and will feature 800 megawatts (MW) of solar capacity and 500 MW of wind power, as well as a 260 MW battery energy storage system.

Memon said getting a loan to kickstart the project, which will cost $1.2b to $1.4b, is a challenge, noting that the “investment appetite” of development institutions like the International Finance Corporation and British International Investment does not align with Oracle Power’s requirements.

Join Asian Power community
“Hence, we would like to deploy this in phases so that we can actually start to build it in 100, 200 tranches of 200 to 300 MW in one go, and that is something which is more aligned with investors’ appetite,” she said.

Oracle Power aims to start operating the plant, which will supply electricity to about 1.2 million households, by 2027 or 2028, the CEO said.

Pakistan's rapid adoption of solar energy, driven primarily by market forces and with minimal political support, provides valuable lessons for other emerging markets, the World Economic Forum (WEF) said in a November 2024 report.

Declining solar panel prices, coupled with skyrocketing grid electricity tariffs that have increased by 155% over three years, are fuelling a rush in renewable energy adoption in Pakistan, with solar power leading the way, it said. The country is now the world’s sixth-largest solar market.

[Riaz Haq]

Solar cells transform agriculture in Pakistan

https://www.warpnews.org/green-tech/solar-cells-transform-agricultu...

Pakistani farmers reduce their energy costs by up to 80 percent by installing solar panels for irrigation.
Pakistan's imports of solar panels in the first nine months exceed the entire 2023 import, equivalent to 17 gigawatts of capacity.
95 percent of farmland in the Lahore area has switched to solar power.
Sharp reduction in energy costs for farmers
Mohammad Murtaza, a corn farmer in Pakistan, has reduced his energy costs by 80 percent by replacing diesel and grid power with solar panels for his irrigation pumps. The investment in solar panels pays for itself in less than a year. The reduced costs mean he can now grow three crops per year instead of two, reports Bloomberg.

Imports of solar energy products during the first nine months correspond to 17 gigawatts of capacity - more than a third of Pakistan's total energy capacity if everything is installed. Solar panels are now being advertised on billboards in major cities and during cricket matches.

Widespread use across the country
A satellite analysis by Norwegian Atlas showed around 400 solar power installations in Pakistan, mainly concentrated in industrial areas. According to solar panel distributors, the installations are evenly distributed between households, factories, and farms.

The solar panels provide financial relief for consumers and businesses who can afford to install them. For the country, it means reduced fuel costs for imports. Pakistan aims to double the share of renewable energy to 60 percent of the energy mix by the end of the decade.

Rapid development without subsidies
The development of solar energy in Pakistan stands out through its rapid growth without government subsidies, according to Jenny Chase, analyst at BloombergNEF. The price of solar panels has dropped so much that some farmers place them directly on the ground as the mounting frames now cost more than the panels themselves.

[Riaz Haq]

Recent documents indicate that there are pending applications for solar net metering with a total capacity of 58,822 megawatts (MW), far surpassing the nation’s existing power generation capacity of 46,000 MW, as reported by the National Electric Power Regulatory Authority (NEPRA).


https://www.techjuice.pk/4742-pending-net-metering-applications-exc...

IESCO currently holds the highest number of pending applications, totaling 1,363 requests that amount to a capacity of 12,276 MW. Among the significant backlogs are GEPCO, which has 117 requests totaling 6,282 MW, LESCO with 699 requests for 6,143 MW. Additionally, FESCO has 871 requests amounting to 12,399 MW, while K-Electric has 773 requests for 10,164 MW.

Delays are primarily attributed to the elevated buy-back rates associated with the net metering system. NEPRA has urged for a thoughtful reassessment of the tariff framework to tackle this concern. The authority has proposed that support for individual solar consumers should take precedence over large-scale solar projects to attain more favorable results.

Recent documents reveal that by June 30, 2024, more than 156,372 solar facilities, with a combined capacity of 2,200 MW, were established under the net metering program. The consumer base surged from 75,724 in FY2022-23 to an impressive 157,844 by the conclusion of FY2023-24, marking a significant doubling within a single year.

Update: However, according to the recent update on the NEPRA report, an earlier computation resulted in a 1000-fold misreport of the energy production capacity awaiting applications.

[Riaz Haq]

Pakistan’s solar revolution rewriting energy landscape; 22 GW of solar panels imported in 18 months

https://www.app.com.pk/national/pakistans-solar-revolution-rewritin...

ISLAMABAD, Jan 30 (APP):Pakistan’s solar revolution is rewriting the energy landscape as communities and businesses take control of their power supply. With 22 GW of solar panels imported in just 18 months, the country is undergoing a mass shift towards decentralized solar solutions.


This was discussed at the Great Solar Rush Conference 2025, hosted by Renewables First and the Pakistan Solar Association on Thursday, said a press release.

In her opening remarks, Senator Sherry Rehman emphasized the urgency of policy alignment with this people-led transformation, stating, “Pakistan has emerged as a market leader in South Asia for solar adoption. We should not be disabling this revolution; we should be enabling it.” She warned that failure to integrate solar into national planning would stall Pakistan’s progress on energy security and economic stability.


Zeeshan Ashfaq, CEO of Renewables First, highlighted the economic realities driving this transition. “Millions of people are rushing towards installing solar PV panels—not because of climate change but because economics make perfect sense.”
Ali Majid, General Manager of Longi, proposed that public sector projects should be mandated to use ‘Made in Pakistan’ panels to attract international investment in local assembly plants.
Waqas Moosa, Chairman of the Pakistan Solar Association, reinforced that Pakistan’s solar adoption rate is one of the highest globally.

Syed Faizan Ali Shah, Member of the Prime Minister’s Solarization Committee, revealed that Pakistan’s daytime electricity demand has fallen by 10 TWh annually due to the solar surge, creating imbalances for grid operators.
Dr. Fiaz Chaudhary, Chairman of NTDC, said to address the operational challenges, Pakistan’s grid must urgently integrate smart metering and distributed energy controls.

Umer Farooq of LUMS Energy Institute emphasized that Pakistan’s energy planning must shift from a top-down approach to decentralized, smart-grid solutions to balance supply and demand efficiently.

As solar becomes a dominant energy source, market liberalization through the Competitive Trading Bilateral Contract Market (CTBCM) is essential.
Salman Amin, a Member of the Competition Commission of Pakistan, stated, “A competitive electricity market will lead to more efficient resource allocation, increased innovation, better service quality, and stakeholder adoption of cleaner, cost-effective technologies”.
Industry representatives present at the event stressed the need for lowering wheel charges in the CTBCM model to promote market participation.
While commenting on the monopolistic nature of the power sector Usama Mela, Member of the National Assembly and Member of the Energy & Economy Forum, commented that as long as independent power producers are subject to guaranteed returns, they do not represent competitive businesses.
He agreed that greater competition in the power sector is the sensible way forward. However, it must be considered within the larger context of grid issues and capacity payments.
Member of National Assembly Dr. Nafisa Shah emphasized that there is a need to gradually open up the power sector for competitive trade under the CTBCM model while also considering the past contracts and decisions that are clogging the system.
Sonia Dunlop, CEO of the Global Solar Council, delivered the closing remarks, highlighting Pakistan’s remarkable solar growth on the global stage. “Pakistan was the market that surprised so many all over the world,” she stated, noting that Pakistan is contributing significantly to the 600 GW of solar deployed worldwide in 2023.

[Riaz Haq]

148 Chinese enterprises showcase cutting-edge solutions at Solar Expo

https://www.nation.com.pk/27-Feb-2025/148-chinese-enterprises-showc...


ISLAMABAD - Solar Pakistan 2025, the country’s largest and only dedicated alternative energy event, concluded at the Expo Centre in Lahore, marking a milestone in Pakistan’s renewable energy journey.

The three-day event was the largest in its history, spanning five halls and featuring more than 350 exhibitors from 10 countries.

Among them, 148 Chinese enterprises stood out, showcasing innovative solar and energy storage technologies tailored to Pakistan’s growing energy needs.

The exhibition brought together a diverse mix of stakeholders, including policymakers, investors, manufacturers, suppliers, traders, and distributors.

It served as a platform to showcase innovations in solar energy, energy storage, and other alternative energy solutions, with a particular focus on addressing Pakistan’s energy challenges.

Chinese companies, a prominent feature of the event, demonstrated their commitment to supporting Pakistan’s renewable energy goals.

Sungrow, an industry leader in inverter and energy storage solutions, exhibited for the 5th time, showcasing its latest residential and commercial energy storage systems.

The products are designed to address Pakistan’s unstable grid and the growing demand for reliable backup power, particularly in the industrial and residential sectors.

At the event, Sungrow’s Regional Director Howard Fu highlighted the company’s decade-long presence in Pakistan. Since entering the Pakistani market in 2015, the company has been at the forefront of the country’s solar energy transformation.

During the exhibition, it signed a Memorandum of Understanding (MoU) with Pakistan’s Artistic Milliners for a significant energy storage project, further strengthening its collaboration with local partners.

Dong Jin Group, another key Chinese exhibitor, showcased a range of products tailored to the Pakistani market, including residential energy storage systems, commercial inverters, lithium batteries, and electric vehicle batteries.

These innovations align with the Pakistani government’s vision of developing green energy cities. Hu Ge, General Manager of Dong Jin Pakistan, highlighted the immense potential of Pakistan’s solar market.

“The Pakistani government’s support for solar energy over the past few years has created a mature and dynamic market. With recent policy adjustments, we anticipate explosive growth in the solar-plus-storage sector,” Hu said.

He also announced that Dong Jin is set to participate in another major solar exhibition in Karachi later this year.

Shah Jahan Mirza, Managing Director of the Private Power & Infrastructure Board (PPIB) at the Ministry of Energy (Power Division), Government of Pakistan, visited the Chinese exhibitors’ booths during the event, expressing his support for the growing international collaboration in the renewable energy sector.

“Chinese companies have played a crucial role in advancing our solar energy infrastructure, and we look forward to further strengthening this partnership,” Mirza stated according to a report carried by Gwadar Pro on Wednesday.