Pakistan signs $200m MoU with Chinese firm to convert thermal plant into solar power

The Northern Power Generation Company Limited (NPGCL) in Muzaffargarh has signed a $200 million MoU with a Chinese firm, Ningbo Green Light Energy (NGLE), supported by the Special Investment Facilitation Council (SIFC), to upgrade an existing thermal power plant into a 300-MW solar power project.

The project is expected to generate 400 million units of electricity annually at a significantly reduced cost, decreasing from PKR 45 to PKR 14 per unit.

This shift to solar energy is anticipated to save $44 million yearly by cutting down on heavy fuel oil imports, aligning with SIFC’s Renewable Energy Transition goals and leveraging the existing infrastructure at GENCO-III.

Additionally, the SIFC has been active in other sectors, pushing for the upgrade of Brownfield Oil Refineries to boost domestic refining capabilities.

Agreements are being finalized that would allow expansions and enable the production of EURO-V standard fuel, doubling the capacities of several refineries including Pakistan Refinery Limited (PRL).

This initiative is expected to reduce oil import bills and contribute to environmental compliance.

Moreover, the recent $1 billion investment by Saudi Arabia in Reqo Dik marks a significant stride in Pakistan’s economic advancement, further demonstrating SIFC’s effectiveness in creating a conducive environment for foreign investments, which are crucial for the country’s sustainable growth and energy independence.