DG Khan Cement Company Limited (DGKC) has successfully installed a 7MW on-grid solar power plant at its site in Khairpur, the company’s filing on Pakistan Stock Exchange (PSX) showed on Monday.

The company said the on-grid power plant has successfully started power generation.

“It will decrease our power cost mix, reduce carbon footprint and curtail reliance on expensive fossil fuels,” the cement maker said.

DGKC is one of the largest cement manufacturers in Pakistan with a production capacity of 22,400 tons per day (6.72 million tons/annum). It has four cement plants, two in Dera Ghazi Khan, one in Khairpur district Chakwal and one at Hub Lasbela district (Balochistan).

Last year in June, DGKC had signed an agreement and established Letter of Credit (LC) for the supply and installation of the plant with Reon Energy Limited.

Back then, the cement manufacturer said the plant was to be financed 100% through the State Bank of Pakistan (SBP) Financing Scheme for Renewable Energy.

The SBP announced the scheme in 2009 for financing power plants using renewable energy, with a view to promote renewable energy projects in the country. The objective of the scheme was to lend support in addressing the challenges of energy shortage and climate change.