Power shortages have long plagued Pakistan, severely impacting the country’s economy and highlighting the urgency of solar panel exports from China. Frequent floods over the past two years have caused extensive damage to the power system, amplifying the urgent demand for large-scale solar photovoltaics.
“The need for reliable energy sources has never been more critical,” stated Abbas, a Pakistani trader, during the Investment and Trade Forum for Cooperation between East & West China on 22 September 2024.
In this evolving landscape, Pakistan is undergoing a significant energy transformation. As of 2024, the country has emerged as a key overseas market for Chinese photovoltaic (PV) companies. According to the China Photovoltaic Industry Association (CPIA), Asia has now surpassed Europe as the largest export destination for PV products, with Pakistan ranking as the second-largest module export market, only after Europe.
During the first half of 2024, solar panel exports from China reached remarkable levels. China exported inverters worth RMB 1.714 billion to Pakistan, with inverter exports alone hitting 326 million yuan in August 2024—a staggering year-on-year growth of 429.04%. This influx of technology has made solar panels a common sight on rooftops across the country, from factories to homes, hospitals, and mosques.
The surge in solar energy adoption is driven by necessity. Pakistan’s traditional power sector heavily relies on coal imports, facing challenges such as a circular debt crisis, a slow transmission network, and frequent damage to transmission lines. These factors have forced the nation to pivot toward renewable energy sources, particularly solar power.
“Electricity prices continue to rise, so people are seeking alternatives,” Abbas added. As of June 2023, Pakistan’s installed solar capacity stood at only 630 megawatts—just 1.4% of its total installed power capacity—indicating significant potential for growth.
Pakistan’s geographical conditions are highly favorable for solar energy production. The World Bank’s Global Solar Atlas highlights that Balochistan Province has an impressive average annual photovoltaic output of 1990 kWh per kilowatt, considerably surpassing figures in New Delhi and Shandong Province. Additionally, the Global Tilted Irradiance (GTI) for this region is 36% and 61% higher than that of New Delhi and Shandong, respectively.
Strong policy support bolsters this shift. The Pakistani government aims to elevate the share of renewable energy in the electricity mix to 20% by 2025 and 30% by 2030. NEPRA’s IGCEP2047 report projects that Pakistan’s PV installed capacity will grow to 12.8 GW by 2030 and 26.9 GW by 2047, necessitating an annual installation of 1.65 GW and 1.07 GW, respectively.
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Businesses in Pakistan are seizing this golden opportunity. “Every bit of space I have, even if it’s just a few feet, I want covered in solar panels,” remarked Khawaja Masood Akhtar, CEO of Forward Sports. His company, a leading football manufacturer, plans to increase its solar energy share to 80% by April next year, following substantial investments in solar panel exports from China.
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