$3.5m raised to produce solar panels locally

Family-owned firm says it will kickstart production from second half of 2023

KARACHI:

Eyeing multifield growth in demand for renewable energy in Pakistan, a family-owned power firm says it has successfully raised advanced level ‘Series-A’ investment to kickstart local production of solar panels from the second half (July-December) of 2023.

The firm is setting up the plant through the transfer of technology from Turkiye at an initial investment of $3.5 million in phase one of the project.

The company said it will formally announce the size of the privately raised investment in the presence of the local financier in the next couple of weeks. Intermarket Securities has evaluated the firm’s value at $4.5 million.

“Pakistan has emerged as the second largest importer of solar energy equipment in Asia after Australia,” said Umair Zavary, Group

Director of Net-Line, in a media briefing on Monday. The country imported solar energy equipment for 2,380 MW at an estimated cost of over $2.5 billion in 2021, it was learnt.

The government has targeted increasing the share of renewable energy (mainly solar and wind power) to 20% by 2025 and 30% by 2030, as compared to around 5% at present.

Pakistan is already manufacturing solar panels. However, “this will be the first plant to manufacture solar panels of international quality standards,” Zavary claimed.

The manufacturing plant has been designed in three phases. The installed capacity of the plant is designed to produce solar panels equivalent to 180 megawatt (MW) per year.

He added that renewable energy solutions help Pakistan save millions of dollars in oil import per year. He estimated that the cost for a 5MW solar power project to be $6 million. “The 5MW project will help the nation save Rs675 million per month in fuel imports.”