Pakistan, Chinese firm ink $200 million solar power deal

Pakistan’s Northern Power Generation Company Limited (NPGCL) has secured a landmark deal valued at $200 million with Ningbo Green Light Energy Pvt Ltd, a prominent Chinese company.

This agreement is designed to convert an existing thermal power plant in Muzaffargarh into a cutting-edge 300 MW solar power facility, marking a significant step towards adopting renewable energy solutions and unlocking economic advantages.

Facilitated by the Special Investment Facilitation Council (SIFC), this initiative leverages the land, assets, and infrastructure of the generation company GENCO-III, showcasing SIFC’s commitment to advancing the transition to renewable energy sources.

The solar upgrade is expected to generate an impressive 400 million units of electricity annually, leading to a substantial cost reduction from Rs 45 to Rs 14 per unit.

Additionally, the shift to solar energy will eliminate the need for heavy fuel oil (HFO), aligning with sustainability objectives.

The anticipated annual savings of $44 million, resulting from decreased import costs, present compelling benefits for stakeholders. This transformative project not only signals a move towards cleaner energy but also ushers in a new era of cost-effective power generation for Pakistan.