China major investor in solar projects
“Pakistan and China are a perfect match for collaboration on renewable energy (solar PV) as China is a globally known giant in renewable energy technology, while Pakistan needs to move away from thermal for power generation,” stated a KTrade Securities solar PV industry report. PHOTO: CHINA ECONOMIC NET
Chinese companies are major investors in Pakistan’s renewable energy projects as out of foreign investment of $144 million in solar PV plants, $125 million is coming from China, constituting nearly 87% of total capital, said Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) President Moazzam Ghurki.
He was speaking during the visit of a Chinese delegation to the PCJCCI Secretariat on Monday where the importance and need for advancement in solar projects were discussed.
Of the cumulative production capacity of 530MW, 400MW (75%) was being generated by the Quaid-e-Azam Solar Park, the first-ever power project capable of generating solar energy in Pakistan, owned by the Punjab government and built by a renowned Chinese company, Ghurki said.
Chinese companies are also major suppliers to many solar PV projects such as mini-solar grids in Khyber-Pakhtunkhwa (K-P) and the ADB’s Access to Clean Energy Programme.
“Pakistan’s solar energy market is expected to record a CAGR (compound annual growth rate) of 2.5% from 2022 to 2027,” he projected.
The PCJCCI president said that the insufficiency of power, which led to surging tariffs and foreign exchange expenditure on imported energy, was underlining the necessity for Pakistan to be more self-sufficient in power generation.
“If solar panels are installed on every roof, those who suffer from heat and load-shedding can generate their own electricity at least all day, and if some surplus electricity is generated, they can sell it to the grid.”
A member of the Chinese delegation, while sharing her views, said that up to now average utilisation rate of the operational solar PV plants was merely 19%, far from the over 95% utilisation rate in China, representing huge opportunities that needed to be tapped.
As experienced PV plant investors in Pakistan, Chinese companies were likely to further leverage their learning in the solar industry, she stressed.
Published in The Express Tribune, July 4th, 2023.
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