Comment by Riaz Haq on April 5, 2025 at 8:57pm

Pakistan to cut power prices in a sign economy stabilising

https://www.reuters.com/world/asia-pacific/pakistan-cut-power-tarif...

ISLAMABAD, April 3 (Reuters) - Pakistan will cut power prices for domestic and industrial users, Prime Minister Shehbaz Sharif said on Thursday, in a sign of the economy's recovery from the brink of default.
The International Monetary Fund stepped in to stabilise the Asian country's finances with a standby arrangement in 2023 and then a $7 billion bailout last year.

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Lower power prices will be a relief to Pakistanis after several increases in the past couple of years.

Pakistan's $350 billion economy has been struggling since inflation rose to record high of 38.50% in May 2023, with growth turning negative, reserves shrinking to barely a couple of weeks of controlled imports, and interest rates jumping to 22%.
"We have successfully brought the inflation down to single digit," Sharif said, adding that the nearly 10-percentage-point reduction in the country's main interest rate in the last year would help businesses grow.

The tariff will be cut by an average 7.41 rupees ($0.0264) per kilowatt-hour to 34.47 rupees for domestic users, and by an average 7.59 rupees per kilowatt-hour to 40.60 rupees for industrial users, Sharif said.

Comment by Riaz Haq on May 10, 2025 at 9:29am

Pakistan's electricity sector faces challenges despite growth in renewables, says 2025 review - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2025/05/10/pakistans-electricit...


One of the most notable developments in FY24 was the surge in imports of solar photovoltaic (PV) panels from China, which contributed to rapid growth in rooftop solar installations across the country. By March 2025, Pakistan had installed 4.9 GW of net-metered solar capacity. However, the review notes that a considerable number of behind-the-meter solar installations have not been documented, which could mean the actual capacity is even higher.

Pakistan’s total installed power generation capacity rose to 46.2 GW during FY24, following the addition of three new utility-scale solar plants. This brought the share of utility-scale renewables in the country’s generation mix from 6% to 7%. Despite these additions, the report highlights that the overall contribution of renewable energy sources—wind, solar, and bagasse—remained stagnant at 5%, well below the targeted 30% share by 2030.

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Pakistan Electricity Review 2025 highlights progress in solar installations but flags persistent issues like transmission bottlenecks and rising capacity payments.

The Pakistan Electricity Review 2025, launched by Renewables First, a think tank based in Islamabad, provides a detailed examination of Pakistan’s power sector during the fiscal year 2024 (FY24). The report identifies significant strides in the sector, particularly in renewable energy, but also points out several continuing challenges that hinder further progress.

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Pakistan’s total installed power generation capacity rose to 46.2 GW during FY24, following the addition of three new utility-scale solar plants. This brought the share of utility-scale renewables in the country’s generation mix from 6% to 7%. Despite these additions, the report highlights that the overall contribution of renewable energy sources—wind, solar, and bagasse—remained stagnant at 5%, well below the targeted 30% share by 2030.

Transmission bottlenecks and overloaded grid infrastructure were identified as key obstacles to the efficient transfer of power, particularly from the south to the energy-demanding north. These limitations forced the system operator to reduce dispatch from lower-cost plants, relying more on expensive RLNG-based generation, which led to a sharp increase in energy purchase costs. The total energy purchase cost surged to PKR 1.3 trillion, with RLNG generation accounting for PKR 568 billion, nearly 51% of the total.

The report also noted a decline in electricity sales for the second consecutive year, with overall sales falling by 3%. The industrial sector, in particular, saw an 11% year-on-year decrease in consumption, reflecting economic challenges and a shift towards more cost-competitive energy sources.

On the financial front, capacity payments rose to PKR 1.9 trillion, a 46% increase compared to FY23. This spike was largely driven by the commissioning of new coal and RLNG power plants, which carry high fixed costs. However, when these plants operate below optimal capacity, the cost is passed on to consumers, further straining the sector’s financial health. Despite these challenges, a reduction in electricity generation led to a modest 7% reduction in energy purchase prices.

The report also highlighted the growing issue of circular debt, which rose to PKR 2.4 trillion by the end of FY24, an increase of 3.6% over the previous year. This ongoing debt accumulation underscores the financial pressures faced by the sector.

The Pakistan Electricity Review 2025 serves as both a snapshot of the progress made in the energy sector and a stark reminder of the structural issues that continue to impede its growth. It calls for continued policy efforts to address these challenges as Pakistan strives to meet its renewable energy goals and ensure a more sustainable and efficient power sector.

Comment by Riaz Haq on June 2, 2025 at 9:40am

Chinese battery glut plugs into solar boom to power Pakistan

https://www.ft.com/content/2b4c598e-a4b3-4c6e-9c38-97e46357f819

The combination of a glut of lithium, a key battery material, and overcapacity of lower-tier China-made batteries has created a flood of cut-price battery energy storage systems for lower-income countries such as Pakistan. Lucky is investing roughly Rs1.5bn ($5.3mn) to convert a rubble-strewn site into a 20.7MW unit supplied by the world’s biggest battery maker CATL, which can hold enough energy to power up to 20,000 homes for an hour. The battery energy storage system will be Pakistan’s largest to date, Lucky said. “A price collapse in wind, solar and batteries has made the payback periods very competitive,” said Hassan Mazhar Rizvi, the factory’s general manager for power generation. “This will ensure smooth operations, and increase our solar and wind portions.” Chinese solar panel prices have plummeted in recent years as the cost of electricity from Pakistan’s grid has surged, prompting the country of 240mn people to import solar panels with the capacity to generate about 19GW last year, according to Jenny Chase, BloombergNEF lead solar analyst. Pakistan is still buying panels that collectively could generate 1GW to 3GW a month this year, she estimated, enough to power a city of millions. The battery storage system will help factories to more cheaply extend their operations beyond daylight hours and scale back the use of fossil fuels, compensating for reliability issues from the grid’s renewable sources. For households, hooking up to a battery is a way to store enough energy to cope with spontaneous blackouts and avoid higher rates for energy from the grid during peak usage times in the evenings. “The limit on the [solar] boom was always likely to be the number of daylight hours,” said Chase. “Larger solar systems are useful, because as well as meeting instantaneous demand they can charge the battery for later.”

“Customer interest has gone through the roof,” said Mujtaba Haider Khan, chief executive of Reon Energy, a Karachi-based renewable energy and battery company. Reon’s energy storage systems, including the one purchased by Lucky, mix predictive software, CATL-made batteries and mostly Chinese-origin solar and wind technology, and can boost a factory’s clean energy usage and cut fossil fuel energy waste, said Khan. “Companies can now recover their investment in transitioning to predominantly renewable energy — using solar, wind and batteries — in less than two years.” The battery storage systems are still too expensive to be adopted as widely as solar has been in Pakistan in the near future. But distributors say prices are falling rapidly and demand continues to grow. Faaz Diwan, director at Karachi-based Diwan International, one of Pakistan’s largest solar and battery distributors, said the cost of the BYD batteries he sold had fallen by more than a third since last year to about Rs275,000 for a 5kWh unit that is enough to power a small house. His company has been importing more than 500 batteries a month since March, three times more than last year, as wealthier households, gyms, mosques and businesses gobble up storage systems to save money on air-conditioning ahead of summer.

Comment by Riaz Haq on June 2, 2025 at 7:25pm

Arab News Pakistan

@arabnewspk
#WATCH: Fisherman Abdul Ghani from a coastal village in Pakistan’s Sindh can now “catch good fish” using solar kit provided under World Bank-backed initiative.

For families like his, solar power is transforming life along the country’s southern coast. https://arab.news/cdkg7

https://x.com/arabnewspk/status/1929704592293454188

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Lit by the sun: How solar power is transforming lives along Pakistan’s southern coast

https://www.arabnews.pk/node/2603057/pakistan


Some 50,000 families in Sindh’s five coastal districts are set to receive solar kits under the World Bank-backed initiative
Project aims to add 400 megawatts to the national grid, 270 megawatts of which will facilitate consumers in Karachi


SUJAWAL, Sindh: Holding a battery in one hand and an LED light in the other, Abdul Ghani waded through the salty waters of the Arabian Sea to reach his small wooden boat.

It was just past sunset, the sky dimming fast, but Ghani had no fear as he had light.

Ghani is one of hundreds of Pakistani coastal residents who have benefited from a green energy initiative under the World Bank-backed Sindh Solar Energy Project (SSEP), a multi-component program that aims to bring sustainable power to over 1.2 million of the southern province’s poorest and most energy-deprived people.

While torches don’t offer adequate visibility in the vast seascape, and boat generators scare fish away when powered on, the battery-powered LED lights from the home energy system have proven to be an unexpected boon for nighttime fishing for residents like Ghani.

“Earlier, I couldn’t catch any fish, but now when I go fishing using these lights, by the grace of God, I catch good fish,” the 45-year-old fisherman from Karo Chan, a coastal village in Sujawal district located in Pakistan’s southern Sindh province, told Arab News.

“This helps me support my children and manage our livelihood.”

The project targets people either without any electricity or facing power cuts, identified through Pakistan’s national poverty scorecard, a data-driven assessment tool used to identify and prioritize assistance for low-income households.

“Each family has a solar system with fans, three LED light bulbs, mobile charging facility, along with a charge controller and a battery package,” Mehfooz Ahmed Qazi, the project director, told Arab News.

“All these cost Rs6,000 ($21), ten percent of the actual price, to instill a sense of ownership in the users.”

Qazi said the project, launched in October 2019 and set to be completed in July 2025, had four components: a 400-megawatt solar power initiative for grid integration, rooftop solar systems for public sector buildings including 34 district headquarter hospitals, off-grid solar home systems for poor households and the establishment of solar equipment standardization laboratories at NED University in Karachi and Mehran University in Jamshoro.

The key objective of the project is to promote the potential of green energy across the province.

Out of the 400 megawatts planned for grid integration, 270 megawatts will be added to the system of K-Electric — serving over 3.4 million customers in Karachi and surrounding areas in Sindh and Balochistan — not only increasing the share of green power but also helping reduce electricity tariffs for residents of Karachi.

By the end of the project, 34 megawatts of rooftop solar installations will be set up on buildings across the province, while 200,000 solar home systems will be distributed, benefiting 1.2 million families.

Of these, 50,000 families in five coastal districts, including Sujawal, will receive solar home systems under the third component of the project that started in February this year.

For families like Ghani’s, the change has been immediate and life changing.

“I turn on three lights,” he explained. “When we turn on the lights, small fish come. Seeing the small fish, the big ones also come. Where I place my net, both big and small fish come into it.”

Comment by Riaz Haq on June 6, 2025 at 6:15pm

From TechJuice:

A major shift is underway in Pakistan’s energy sector.

As electricity prices soar and solar technology becomes more affordable, the country’s import of battery energy storage systems (BESS) is accelerating. According to IEEFA, these imports are projected to reach 8.75 gigawatt-hours (GWh) by 2030.

BESS offers a crucial bridge to reliable, decentralized renewable energy infrastructure. For Pakistan, this could mean more stable grids, reduced fossil dependence, and long-term cost savings.

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Battery storage and the future of Pakistan's electricity grid

https://ieefa.org/resources/battery-storage-and-future-pakistans-el...

The convergence of rising energy prices and falling costs for Distributed Energy Resources (DER), such as rooftop solar photovoltaic (PV) systems and Battery Energy Storage Systems (BESS), have encouraged consumers to adopt decentralized energy solutions, reducing reliance on the grid and energy costs.

Pakistan imported an estimated 1.25 gigawatt-hours (GWh) of lithium-ion battery packs in 2024 and another 400 megawatt-hours (MWh) in the first two months of 2025, a trend that is likely to continue. As BESS adoption accelerates, it has the potential to reshape Pakistan’s energy landscape, driving the shift toward a more decentralized, consumer-centric system. While necessary, adding DERs to Pakistan’s conventional grid presents multiple challenges.

The country’s rapid adoption of solar PV systems has already started impacting centralized grid generation. As more consumers shift to net metering and self-generation, the overall electricity demand from the national grid has started declining. However, due to contractual obligations resulting from long-term power purchase agreements, the exit of paying consumers from the grid increases the financial burden on remaining users through higher fixed costs and capacity payments.

The impact of BESS adoption will depend on the pace of government investment in grid modernization and the development of advanced markets that enable decentralized battery storage to support the grid.

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What is the cost of Chinese lithium ion batteries per kWh in Pakistan
AI Overview
Lithium-Ion Battery Pack Prices See Largest Drop Since 2017 ...
The average cost of Chinese lithium-ion battery packs in Pakistan ranges from $230/kWh to $360/kWh. This cost is significantly higher than in China due to high customs duties and taxes levied in Pakistan.

Here's a more detailed breakdown:
High Costs:
Despite the continuous decline in battery prices worldwide, including China, the cost of lithium-ion batteries in Pakistan remains elevated due to import duties and taxes.
Battery Imports:
Pakistan's lithium-ion battery imports are projected to increase substantially in the coming years.
Payback Period:
Despite the high costs, solar-plus-battery systems in Pakistan are still attractive due to their relatively short payback periods, typically 3-5 years in residential sectors and 4-6 years in commercial and industrial sectors.
Impact of Taxes:
High taxes and duties on lithium-ion batteries can significantly increase their final cost, with estimates of a 48% cost increase in some cases.

Comment by Riaz Haq on June 16, 2025 at 10:47am

Pakistan to Add Over 2,600 MW Through Solar Net Metering in FY2025–26

https://tribune.com.pk/story/2550583/solar-net-metering-to-add-over....

The number of net metering consumers is also expected to grow by 197,655, contributing to the Sustainable Development Goal (SDG) indicator through increasing the share of renewable energy in total energy consumption and supporting grid stability.

At that point, the generation mix is projected to comprise approximately 50.5% from renewable sources (including hydel, solar, solar net metering, wind and bagasse) and 49.5% from thermal sources (such as coal, gas, re-gasified liquefied natural gas, oil and nuclear).

The power sector will receive a public investment of Rs161,635 million from the Public Sector Development Programme (PSDP) of FY26, including government-budgeted/self-finance projects of power companies, excluding independent power producers (IPPs).

The government plans to execute 63 projects.

These investments will contribute directly to the achievement of SDGs through distribution and transmission projects aimed at increasing access to electricity and through power generation projects by enhancing the share of renewable energy.

By the end of June 2026, the transmission sector will be boosted by an additional capacity of 5,550, 4,710 and 1,300 MVA on 500-kilovolt, 220kV and high-voltage, direct-current (HVDC) grids, respectively.

These transmission lines will be extended by 170 km (500kV), 355 km (220kV) and 137 km (±660kV). Additionally, one new grid station will be established at the 765kV level and two at the 220kV level.

To increase the proportion of population having access to electricity, the targeted investment in power distribution will lead to the electrification of 15,352 villages and the addition of 1.861 million new consumer connections during FY26.

These efforts will directly expand electricity access across urban and rural areas.


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Pakistan to Add Over 2,600 MW Through Solar Net Metering in FY2025–26

Pakistan is making a big leap in renewable energy. According to the Annual Plan 2025–26, 2,800 megawatts will be added to the grid next year, 2,633 MW of which will come from solar net metering.

This shift highlights growing public participation in clean energy production, despite an already surplus generation capacity.

Comment by Riaz Haq on June 17, 2025 at 10:05am

Pakistan's solar surge lifts it into rarefied 25% club

https://www.reuters.com/markets/commodities/pakistans-solar-surge-l...

(Reuters) - Pakistan is rapidly emerging as a key leader in solar power deployment, and not just within emerging economies.
The South Asian country has boosted solar electricity generation by over three times the global average so far this year, fuelled by a more than fivefold rise in solar capacity imports since 2022, according to data from Ember.

That combination of rapidly rising capacity and generation has propelled solar power from Pakistan's fifth-largest electricity source in 2023 to its largest in 2025.

What's more, so far in 2025 solar power has accounted for 25% of Pakistan's utility-supplied electricity, which makes it one of fewer than 20 nations globally that have sourced a quarter or more of monthly electricity supplies from solar farms.
EXCLUSIVE CLUB
Over the first four months of 2025, solar farms generated an average of 25.3% of Pakistan's utility electricity supplies, Ember data shows.
That average compares with a solar share of 8% globally, around 11% in China, 8% in the United States and 7% in Europe.
And while the average solar shares in the Northern Hemisphere will climb steadily through the summer months, very few countries will even come close to securing a quarter of all utility electricity supplies from solar farms any time soon.

Indeed, only 17 countries have ever registered a 25% or more share of monthly utility electricity supplies from solar farms, according to Ember.

Those nations are: Australia, Belgium, Bulgaria, Chile, Cyprus, Denmark, Estonia, Germany, Greece, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Pakistan, Portugal and Spain.
That list is heavily skewed towards Europe, where the power sector shock from Russia's full-scale invasion of Ukraine in 2022 sparked urgent and widespread power-sector reform and the rapid roll-out of renewable generation capacity.

ndeed, Australia and Chile are the only nations aside from Pakistan that are outside Europe, and all included nations boast a far higher gross domestic product (GDP) per capita than Pakistan.
IMPORT DRIVE
The chief driver of Pakistan's solar surge has been an accelerating import binge of solar capacity modules from China.

Between 2022 and 2024, Pakistan's imports of China-made solar components jumped fivefold from around 3,500 megawatts (MW) to a record 16,600 MW, according to Ember.

Pakistan's share of China's total solar module exports also rose sharply, from 2% in 2022 to nearly 7% in 2024.
And that import binge has continued into 2025.
Over the first four months of the year, Pakistan imported just over 10,000 MW of solar components from China, compared with around 8,500 MW during the same period in 2024.
That rise of nearly 18% in imported capacity has lifted Pakistan's share of China's solar exports to new highs too, with Pakistan accounting for around 12% of all of China's solar exports so far this year.
SOLAR-CENTRIC
The frantic deployment of imported solar modules across Pakistan in recent years has upended the country's electricity generation mix.
So far in 2025, solar is by far the single largest source of electricity, followed by natural gas, nuclear reactors, coal plants and hydro dams.

Comment by Riaz Haq on June 17, 2025 at 10:06am

Pakistan's solar surge lifts it into rarefied 25% club

https://www.reuters.com/markets/commodities/pakistans-solar-surge-l...

As solar farms were the fifth-largest supply source for electricity just two years ago, solar's pre-eminence so far this marks a sharp swing towards renewables within the country's utility network.
In addition, the country is committed to much more growth in renewable energy generation capacity through the rest of this decade.
Pakistan is targeting 60% of electricity supplies to come from renewable sources by 2030, according to the International Trade Administration.
Through the first four months of 2025, renewable energy sources generated 28% of the country's electricity, so energy planners are aiming for a more than doubling in that share by the end of the decade.
With solar modules representing the quickest and cheapest means to meet those goals, further rapid build-out of the country's solar farm system looks likely, which will cement Pakistan's status as a global solar superpower.

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