Chinese solar panels ease pressure on Pakistan Grid as they are financially viable for the Pakistani consumer market.
The introduction of affordable Chinese solar modules, which accounted for 10,450 MW in the first half of 2024, has alleviated pressure on Pakistan’s national grid system.
The influx of financially viable Chinese solar panels has provided relief to the people of Pakistan, who have been affected by power outages, as millions are transitioning to renewable energy solutions powered by this Chinese solar influx.
An official from the Lahore Electric Supply Company (LESCO) informed that in the first half of 2024, Pakistan benefited from Chinese inverters valued at RMB 1.714 billion. In August alone, inverter exports to Pakistan reached 326 million yuan, marking a remarkable year-on-year increase of 429.04 percent.
The impact of Chinese Solar Panels
The positive impact of Chinese solar panels in the Pakistani market has allowed the national grid system to operate more effectively, alleviating the strain on infrastructure that previously suffered frequent outages due to needed renovations.
With reduced pressure, electricity generation on the grid in September decreased by 6 percent year-on-year to 12.1 billion units, following a 17 percent decline in August.
September’s generation marked the lowest output for that month since September 2018, with the 12-month moving average monthly generation dipping below 10 billion units for the first time in 44 months. Notably, the average for August 2018 exceeded that of September 2024, highlighting the extent of the reduced grid demand thanks to Chinese solar panels.
Additionally, a WAPDA official noted that approximately 30 percent of electricity consumption in Pakistan is now generated from solar power.
If the supply of affordable Chinese solar systems continues, Pakistan’s installed solar capacity is projected to rise from 1.41 gigawatts in 2024 to 9.53 gigawatts by 2029, reflecting a compound annual growth rate (CAGR) of 46.55 percent. This significant growth is driven by the increasing adoption of Chinese solar PV systems.
Furthermore, decreasing costs are making solar energy more accessible and affordable for residential, commercial, and industrial sectors, while growing environmental concerns are shifting the focus toward clean energy sources like solar power.
Moreover, the Pakistani government has initiated several programs to promote the solar energy sector’s growth. The Alternative Energy Development Board (AEDB) has set a target of generating 30 percent of the country’s electricity from renewable sources by 2030.
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