Comment by Riaz Haq on July 7, 2025 at 6:39pm

Shift to solar comes at a price for Pakistan’s national grid

https://www.ft.com/content/91116c44-bacf-43f4-9b6f-63a6c738ef4e

Demand for lithium-ion batteries is also surging, traders and importers say, in part because households are preparing to lose the payments from selling to the grid that they use to offset high charges during peak usage times in the evening, while industries also want to scale up renewables. Pakistan introduced net metering 10 years ago to help households defray the costs of installing solar — then 10 times higher — by letting them sell spare power to the grid. The move worked, but policymakers say a surge in installations — net metering capacity was 2,813MW as of March — from 300,000 consumers, mostly households, added a burden of Rs150bn ($529mn) on the other 40mn consumers last year from fixed and buyback costs. The impact could reach Rs4,400bn for the period 2025 to 2034 if current policy persists, officials say. At the same time, demand for grid power has fallen.

Since 2015, Pakistan has drawn in billions of dollars of sovereign-backed loans to build power plants, and signed long-term liquefied natural gas deals. This resolved blackouts but was costly, as economic growth has not kept up with demand projections. The result is a country owing $18bn in mounting power and gas sector debts to finance excess energy supply. According to Arzachel, a consultancy, two-thirds of a household electric bill comes from fixed costs, such as capacity charges even for idling plants. In March, the government proposed cutting the electricity buyback rate, reducing the licensing period for net metering contracts, and limiting consumers to installing only as much solar as is authorised by their electricity provider. The plan stalled after it was denounced as “cruel” by politicians, who said consumers and industries would be saddled with power costs of between Rs30 and Rs60 per unit, among the highest in south Asia.

Power minister Awais Leghari says a change is a “necessity” as the “wealthiest households in Karachi, Lahore and Islamabad . . . avoid fixed costs while their share is covered by the most vulnerable”.

Power minister Awais Leghari says poorer customers are subsidising those who can afford solar “Why should we buy power at a price that is Rs17 more expensive than the national energy pool price I buy from other generators?” Leghari says. He adds that reforms would raise payback periods to four or five years, from two to three currently, which “remains a fair incentive”.

Haneea Isaad of Islamabad-based Institute for Energy Economics and Financial Analysis says there was nearly a nationwide blackout during Eid in March, as solar power surged and the grid could not absorb frequency changes as some backup generators and plants were switched off due to low demand in the holiday. “Technical problems are . . . a ticking time bomb,” she says, and the switch to solar means companies are losing revenues to invest. The government says imported panels harm prospects of a local industry and it hopes to recoup some of the import bill. Analysts say the proposed levy is aimed at slowing solar adoption. To boost grid use, enabling investment to improve the service, Pakistan is banking on cryptocurrency mining, AI data centres, power cost reductions, levies on industries using captive natural gas plants, and electric vehicles.

Saadia Qayyum, an energy consultant at Canada-based Hatch, says “the government appears to be relying on short-term policy adjustments that risk slowing down solar adoption” among the poorest. “Many consumers are turning to solar because grid electricity is expensive and unreliable — in some areas, supply is limited to just 8 hours a day,” she says. “Policy shifts that make it harder to access or afford solar risk removing that essential lifeline.”

Comment by Riaz Haq on July 8, 2025 at 7:24am

Pakistan has quickly become one of the world's biggest markets for solar energy. This solar boom has been driven in large part by consumers who are fed up with sky-high electricity costs.

https://www.npr.org/2025/07/08/nx-s1-5448805/pakistan-becoming-one-...

Comment by Riaz Haq on December 13, 2025 at 9:39am

Pakistan plans large battery storage to ‘stabilise grid’ - Business -


https://www.dawn.com/news/1959871

Move aims to manage renewable intermittency, reduce frequency fluctuations, minister says
• Clean energy share rises to 46pc, surpassing 2025 capacity target

ISLAMABAD: The government is wor­king on large, utility-scale Battery Ene­rgy Storage Systems (BESS) to ensure stability of the national grid, which is currently facing challenges such as frequency fluctuations caused by the induction of intermittent renewable energy sources faster than planned targets.

“The government … is pursuing the development of large-scale battery energy storage systems through private-sector investments to address the intermittency of variable renewable energy, optimise grid demand management, and enhance overall system stability,” Power Minister Sardar Awais Leghari told the National Assembly in a written statement on Friday.

In response to a series of questions from various MNAs, the minister also confir­med that the government was gradually moving away from Liquefied Natural Gas (LNG) as part of its policy to reduce reliance on imported fuels amid higher capacity contracts, increasing induction of indi­genous renewables, and stagnant demand.



Clean energy share

The minister said the clean energy share in the country had reached 46 per cent by September 2025 against the government’s 40pc capacity target for 2025.

He added that the government had set ambitious targets under its various power policies to increase the share of on-grid renewable energy capacity to 40pc by 2025 and 60pc by 2030.

Currently, 60 private-sector renewable energy projects with a cumulative capacity of 4,753MW are operational, including 680MW of solar, 1,937MW of run-of-river hydropower, 1,845MW of wind, and 291MW of bagasse cogeneration.

Alongside 9,619MW of public-sector hydropower and 100MW of solar in K-Electric’s system, renewables account for more than 37pc of the generation mix.

“Net-metering-based solar photovoltaic [PV] has further added 6,390MW as of September 2025, raising the clean energy share to approximately 46pc, thereby surpassing the government’s 40pc renewable energy capacity target for 2025,” the minister said.

In parallel, the minister said the government had finalised an initial quantum of 800MW for the Competitive Trading Bilateral Contract Market framework to provide market access to renewable ene­rgy producers and enable large consumers to enter into direct supply contracts with producers of their choice, subject to a wheeling charge of about Rs13 per unit.

Mr Leghari emphasised that the availability of reliable, efficient, eco-friendly, and affordable electricity was crucial for sustainable economic growth. “There­fore, the government is prioritising the effective use of renewable and indigenous energy sources through its national policies aimed at diversifying the energy mix by promoting clean and renewable sources such as wind, solar, hydropower, and bagasse,” he added.

LNG reliance

Discussing LNG diversion, the minister reported that dependence on imported fuel plants had comparatively reduced in recent years, and priority was being given to the utilisation of local energy resources, including Thar coal, solar, wind, bagasse, and hydropower, to minimise reliance on imported fuels.

He conceded that dependence on imported LNG had comparatively dec­reased in recent years. “This policy shift is primarily aimed at promoting ind­igenous and renewable energy resources and ensuring least-cost dispatch in the overall generation mix,” he added.

He continued that the government was actively promoting the adoption of solar energy technology at the consumer level across residential, commercial, and industrial sectors.
.

Comment by Riaz Haq on December 18, 2025 at 2:03pm

Pakistan unveils new net metering rules for rooftop PV – pv magazine International

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has initiated a public consultation on proposed revisions to solar net-metering regulations. A key change under consideration is a reduction in the tariff for surplus solar power, which could be cut by half from PKR 26 ($0.093) per kWh to PKR 13 per kWh.

https://www.pv-magazine.com/2025/12/18/pakistan-unveils-new-net-met...

Pakistan’s NEPRA has launched a public consultation on new rules it intends to apply to PV systems up to 1 MW operating under the country's net metering regime.

The Prosumer Regulations 2025 are intended to replace the Net Metering Regulations issued in 2015.

Under the new rules, the sale of surplus power to the grid will be made through a new net billing arrangement, with PV system owners being credited based on a nationally determined average energy purchase price rather than full one-to-one net credits.

Furthermore, surplus power will be purchased by the utility at Pakistan’s national average energy purchase price, which will likely be lower than current incentive rates. According to local media outlet Daily Times, the tariff may drop from around PKR 26 ($0.093) per kWh to PKR 13 per kWh.

Moreover, the standard net metering agreement term should be reduced from 7 years to 5 years, with extensions being possible by mutual consent of prosumers and utilities. The existing agreements under the 2015 regulations will continue until their terms expire. Afterward, new terms under the 2025 rules would apply.

The proposed changes, if implemented, will mean the country will transition from a pure net-metering mechanism toward a net billing approach, which NEPRA says will balance renewable adoption with utility sustainability and grid reliability.

Distributed solar under net metering, on the other hand, has seen a vertiginous development in Pakistan over the past two years.

The country installed 1.2 GW of net-metering capacity across the first six months of 2025, according to figures from the Islamabad-based think tank Renewables First.

Cumulative net-metering capacity increased from 4.9 GW at the end of last year to 6.1 GW by the end of June. The growth rate is slower than that recorded during the second half of 2024, when 2.5 GW of net-metering capacity was added.

Rabia Babar, manager data for energy and climate at Renewables First, told pv magazine that while H1 2025 saw a surge in net-metering applications, the pace of issuance slowed. “As of June, over 4,000 new net metering connections were pending with various utilities, with regulatory bottlenecks contributing to a growing backlog,” Babar explained.

Comment by Riaz Haq on January 10, 2026 at 8:39am

AI Overview

Pakistan is actively developing its lithium-ion battery manufacturing sector through new national policies, incentives, and collaborations, particularly with China

, aiming to cut imports, boost energy security for EVs and renewables, and attract investment, with local assembly and production starting via companies like Apex Lithium Batteries and Li-Power Green Energy (Pvt.) Ltd., building on existing players like Atlas Battery Limited, Exide Pakistan Limited, and Phoenix Battery Ltd. 

Government Initiatives & Policy

• National Policy Framework: Pakistan's Ministry of Industries and Production is creating a national policy for localized manufacturing to reduce import reliance, focusing on EVs, solar energy storage, and grid stability.
• Incentives & Investment: The policy includes incentives, safety standards, and phased localization plans to attract private investment and joint ventures, especially from Chinese firms.
• China Collaboration: Agreements worth hundreds of millions are being pursued with Chinese companies for battery assembly and to leverage local lithium reserves. 

Key Local Manufacturers & Players

• Apex Lithium Batteries: Manufactures locally in Multan using high-performance cells from Great Power and EVE.
• Li-Power Green Energy: A Karachi-based company specializing in R&D, manufacturing, and sales of lithium batteries.
• Badar Energy: A provider of lithium solar storage solutions in Pakistan.
• SolaX & Wasiq Industries: Opened Pakistan's first GWH lithium-ion battery factory, a significant step in high-end manufacturing.
• Established Brands: Atlas Battery Limited, Exide Pakistan Limited, and Phoenix Battery Ltd are key players, with Phoenix expanding into lithium. 

Market Drivers

• Electric Vehicles (EVs): Growing demand for EV batteries.
• Renewable Energy: Need for storage for solar power integration.
• Energy Security: Reducing dependence on imported batteries. 

In essence, Pakistan is strategically shifting towards domestic lithium-ion battery production, driven by policy, technology transfer, and local entrepreneurship, to support its green energy transition. 

Comment by Riaz Haq 4 hours ago

Pakistan in talks with world’s largest EV battery maker CATL on investment cooperation — business chamber  | Arab News

https://www.arabnews.com/node/2643232/pakistan

• Envoy to Beijing says China-Pakistan MoUs, joint ventures worth over $13 billion signed in two years
• Says Pakistan eyeing “first-mover advantage” in sodium battery sector amid global clean energy transition

KARACHI: Pakistan is in discussions with China’s CATL, the world’s largest electric vehicle battery manufacturer, over potential investment and cooperation in advanced battery technologies, Pakistan’s ambassador to Beijing said this week, as Islamabad pushes to attract industrial investment under the next phase of the China-Pakistan Economic Corridor (CPEC).

China remains Pakistan’s largest strategic and economic partner, with the two countries deepening cooperation through CPEC, the flagship Pakistan arm of China’s Belt and Road Initiative launched in 2015. The first phase of CPEC focused largely on power generation, roads and transport infrastructure, while the second phase has increasingly shifted toward industrial cooperation, technology transfer, manufacturing, agriculture and special economic zones.

Pakistan has recently intensified efforts to attract Chinese private-sector investment as it seeks to stabilize its economy under an IMF-backed reform program and position itself as a regional manufacturing and logistics hub.

“Pakistan and China have made significant progress in strengthening bilateral economic cooperation with more than 300 Memorandums of Understanding (MOUs) and over three dozen joint venture agreements signed during the last two years, carrying a cumulative value exceeding $13 billion,” Pakistan’s Ambassador to China Khalil Hashmi said during a meeting on Monday with a Chinese business delegation at the Karachi Chamber of Commerce and Industry.

Highlighting emerging opportunities in energy and technology, Hashmi said Pakistan was “currently engaged in active discussions with CATL,” which he described as one of the world’s largest battery manufacturers specializing in lithium-ion and increasingly sodium-based battery technologies.

“He said Pakistan is encouraging the company to establish cooperation and investment initiatives in the country, expressing optimism that concrete developments may emerge during the forthcoming visit of the Prime Minister to China,” according to a statement released by the Karachi Chamber. 

Global demand for EV batteries and energy storage systems has surged in recent years as governments and industries transition toward cleaner energy and electric mobility. CATL, headquartered in China, is the world’s dominant EV battery producer and supplies major global automakers including Tesla, BMW, Volkswagen and Ford.

Pakistan has increasingly positioned itself as a potential destination for battery manufacturing and mineral processing investment, particularly as global attention shifts toward supply chains linked to electric vehicles, renewable energy and energy storage.

Hashmi said the global market was gradually moving from lithium-ion batteries toward sodium-based battery technologies and noted that Pakistan possessed “abundant raw materials required for such industries.”

“Pakistan aims to capitalize on the first-mover advantage in this evolving sector and is working steadily toward attracting investment in advanced battery manufacturing and new energy technologies,” the statement said, quoting the ambassador. 

Hashmi also said Pakistan had established a mechanism to improve implementation of Chinese investment agreements, adding that nearly 30 percent of signed MoUs were now being converted into practical contracts and business ventures.

Comment by Riaz Haq 3 hours ago

Pakistan says China’s Dongjin Group to invest $15 million in battery plant in Faisalabad

https://www.arabnews.com/node/2643228/amp

Move expected to help Pakistan meet growing demand for batteries, driven by increasing number of electric vehicles, solar systems
Plant likely to create jobs, support allied industries, including electronics, automotive components, packaging, chemicals, says official
ISLAMABAD: Chinese company Dongjin Group recently announced its plan to invest $15 million in a dry battery facility in the eastern city of Faisalabad, state-run Associated Press of Pakistan (APP) reported on Monday.

Dongjin Group designs, manufactures and sells lead acid batteries and chargers used in UPS systems, telecom, medical equipment, electric vehicles, solar and wind power systems and others. The Chinese company recently announced its plan to invest $15 million in the facility, APP said, adding that it will be established in the Special Economic Zone near Faisalabad.

The investment agreement was signed with the Punjab Board of Investment and Trade (PBIT), the state-run media reported.

“Chinese company Dongjin Group’s plan to establish a dry battery manufacturing facility in Allama Iqbal Industrial City is expected to help Pakistan meet growing demand for batteries, driven by the expansion of electric vehicles and solar energy systems,” APP said.

Sharqui Ali Tipu, director of marketing at PBIT, said Dongjin Group decided to establish the plant after observing the increasing demand of batteries in Pakistan, particularly due to the growing use of electric vehicles and solar energy solutions in the country.

He said the project is expected to generate economic and industrial activity across multiple sectors, while facilitating the transfer of modern technology.

Tipu said the battery plant is likely to support allied industries, including electronics, automotive components, packaging, chemicals and engineering support services. He added that it would also create employment opportunities in Faisalabad and its surrounding areas.

“Under Pakistan’s Special Economic Zone incentive package, the company will be eligible for a 10-year income tax holiday and a one-time exemption from customs duties and taxes on the import of plant and machinery,” APP said.

Almas Hyder, former chairman of the Engineering Development Board, an apex government body under the Ministry of Industries & Production, noted that Pakistan is moving toward localizing lithium-ion battery manufacturing to strengthen energy security and reduce import dependence.

Hyder said batteries have become strategically important globally due to their growing demand linked to renewable energy, electric vehicles and grid stability.

“The greater the battery production in Pakistan, the higher the chances of reducing dependence on expensive electricity and imported fossil fuels,” Hyder was quoted as saying by the APP.

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