Transforming Energy: Pakistan's Growth in Solar Exports from China
In 2024, Pakistan has emerged as a crucial market for Chinese photovoltaic (PV) manufacturers, marking a significant shift towards renewable energy in the country. According to the China Photovoltaic Industry Association (CPIA), Asia has surpassed Europe as the leading destination for PV exports, with Pakistan claiming the position of the second-largest market for module exports, following Europe.
P.c. China Pakistan Economic Corridor
In the first half of 2024, China exported inverters worth RMB 1.714 billion to Pakistan, with a staggering year-on-year growth of 429.04% in August alone, totaling 326 million yuan. This remarkable growth reflects Pakistan's urgent need to transition to renewable energy sources, driven by rising electricity prices. “Electricity prices continue to rise; thus, people are trying to find their own way out,” noted Abbas, a Pakistani trader at the recent Investment and Trade Forum for Cooperation between East and West China.
As of June 2023, Pakistan's solar power installed capacity stood at 630 megawatts, accounting for only 1.4% of the total installed power capacity, indicating vast potential for expansion. Balochistan, for instance, offers ideal solar conditions, with a household PV system generating an average of 1990 kWh annually, significantly higher than comparable regions in India and China.
The Pakistani government has actively supported the renewable energy sector, aiming to increase its share in the electricity market to 20% by 2025 and 30% by 2030. The IGCEP2047 report from NEPRA anticipates exponential growth in Pakistan's PV installed capacity, projected to reach 12.8 GW by 2030 and 26.9 GW by 2047. Achieving these goals requires an average annual increase in new PV capacity of 1.65 GW and 1.07 GW, respectively.
Local businesses are eager to adopt solar solutions, with many transforming factory rooftops into solar power hubs. Khawaja Masood Akhtar, CEO of Forward Sports, one of the world's largest football manufacturers, stated, “Every bit of space I have, even if it’s a few feet, I want it covered in solar panels.” His company has increased the share of solar in its energy mix to 50% over the past two years, and plans to boost it to 80% by next April.