In a move to curb escalating electricity costs and expand renewable energy use, Cherat Cement Company Limited (CHCC) has decided to install a 25 megawatt (MW) battery energy storage system alongside a 5.4MW solar power plant at its Nowshera manufacturing facility.
The listed company engaged in the manufacturing of cement disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.
“We are pleased to inform that the Board of Directors of the company vide circular resolution has approved installation of a 25MW Battery Energy Storage System (BESS) and an additional 5.4MW solar power plant at the Factory Site, Nowshera, Khyber Pakhtunkhwa,” read the notice.
The total cost of the BESS system and additional solar power of 5.4MW is approximately Rs1,850 million, informed Cherat. Whereas the project would be completed “within six months from the start date,” it added.
“This will strengthen the company’s renewable energy capacity and reduce its rising power cost.”
Last year, Cherat Cement announced an expansion in its renewable portfolio with the commissioning of a 6.065MW solar power plant at its facility in Khyber Pakhtunkhwa.
There has been a growing shift towards alternative energy sources in Pakistan, especially solar, which has become increasingly popular among residential and commercial sectors.
According to Policy Research Institute for Equitable Development (PRIED), an independent think tank, Pakistan is experiencing unprecedented solarisation of its energy sector, with solar photovoltaic (PV) panels with a capacity of 33 gigawatts already installed across the country.
This rising trend has left decision-makers grappling with its implications for the national grid and energy sector, as electricity consumption remains stagnant.
Nonetheless, several projects have been initiated to exploit this relatively cheaper energy source.
Last month, Kohinoor Mills Limited (KML) completed the commissioning of an additional 2.7MW of renewable energy capacity at its manufacturing facility, taking its total solar generation to 7.2MW.
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