Thatta Cement Company Limited became the latest company to move towards expanding renewable sources as the listed firm announced a ‘green energy plan’ to install 8.3 MW of renewable energy at its premises.
The company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“The Board of Directors of Thatta Cement Company Limited approved in principle a green energy plan in order to reduce dependency on grid electricity and savings on costs,” read the statement.
The company shared its management is working on the plan of action and is now in the final stages of installing 3.5 MW solar panels at plant premises.
“Furthermore, the company of late has also entered into an arrangement with M/s Orient Energy Systems FZCO for installation of 4.8 MW windmill project at the plant premises,” it said.
A formal agreement, outlining the terms and conditions of the project, will be signed with Orient Energy Systems FZCO in due course, the company said.
“These initiatives will reduce the company’s dependency on grid electricity by 50%.”
Thatta Cement was of the view that these initiatives for investment in renewable energy project would play a vital role in cost savings.
Amid high tariffs, Pakistan’s industrial base is ramping up transition to solar power
Pakistan has been actively working to increase its renewable energy capacity to address energy issues and reduce reliance on traditional fossil fuels.
Several projects have been initiated to harness this potential.
Several cement manufacturing firms in the country have also resorted to generating electricity through renewable sources.
In August last year, Lucky Cement, one of Pakistan’s largest cement manufacturer, announced the successful commissioning of its 25MW captive solar power plant located in Karachi.
Similarly, DG Khan Cement Company Limited (DGKC), in March last year, successfully installed a 7MW on-grid solar power plant at its site in Khairpur.
The moves come as industrial and commercial power tariff has seen a massive increase over the last couple of years.
Higher energy prices triggered mass protests across Pakistan last year and have also stifled energy demand with policymakers scratching their heads on how to move forward for the sector’s viability.
Pakistan pursued an aggressive policy to add power capacity, but years of slow economic growth, power theft, and under-investment in transmission and distribution networks have meant that bill recovery has not been at par.
With runaway inflation triggering record-high interest rates, demand for energy has reduced further, leaving Islamabad in a ‘catch-22’ situation.