A family-owned power firm says it has successfully raised an advanced level investment to kickstart local production of solar panels in Pakistan starting in the second half of 2023.
The family-owned power company is establishing the plant for production of solar panels through the transfer of technology from Turkey, with a $3.5 million initial investment in phase one of the project.
A family-owned power firm says it has successfully raised an advanced level “Series-A” investment to kickstart local production of solar panels in Pakistan starting in the second half of 2023 (July–December).
In the coming weeks, the company plans to formally announce the size of the privately raised investment in the presence of the local financier. The firm is valued at $4.5 million by Intermarket Securities.
“Pakistan has emerged as Asia’s second largest importer of solar energy equipment after Australia,” Umair Zavary, Group Director of Net-Line, said at a press conference on Monday. According to reports, the country imported solar energy equipment worth more than $2.5 billion in 2021.
The government has set a target of increasing the share of renewable energy (primarily solar and wind power) to 20% by 2025 and 30% by 2030, up from around 5% currently. Pakistan already produces solar panels. However, “this will be the first plant to manufacture solar panels of international quality standards,” according to Zavary.
The manufacturing plant was planned in three stages. The plant’s installed capacity is intended to produce solar panels equivalent to 180 megawatt (MW) per year.
He also stated that renewable energy solutions save Pakistan millions of dollars in annual oil imports. He estimated that a 5 MW solar power project would cost $6 million. “The 5 MW project will help the country save Rs 675 million in fuel imports each month.”
Pakistan has indeed made significant progress in adopting solar energy in recent years. The country has a diverse energy mix, with a significant portion of its electricity being generated from fossil fuels such as coal and natural gas.
However, the government of Pakistan has been working to increase the share of renewable energy in the country’s electricity mix, and solar energy has been a key focus of these efforts.