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

The project is expected to produce 400 million units of electricity each year at a cost of Rs14 per unit

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.

9 COMMENTS

  1. More than Double price purchase of Solar Plant which is not needed at all as we already have extremely surplus power production in the country. Another wrong being done to allegedly correct an old wrong. When shall bureaucracy stop making irrational decisions.

  2. some one can explain how thermal plant coal fired or gas fired can b converted to solar plant. nothing id interchangeable

    what is cost of conversion?
    only solution for cheap energy is hydro power
    for which are not working.

  3. last part of this story about Rekodik is unbelievable that we r selling RD like our motherland fr billion dlr is bullshit , whoever is selling at such low value should b hanged till death with no mercy,as knowing details 25% of Rekodik is worth 5/7billion to-date more after digging starts

  4. Rekodik as claimed by Barack’s own minning
    reports confirmed the 300/mtrs datta wihich is 30%of actual reserves so by that means
    the project the day it starts worth 35/45biln dollars,so we all should know the real facts and figures,god bless Pakistan q

  5. GENCO 2. We have recently receive traffic 14 rupees per unit cast combine cycle 600 MW . Our units are stand by government not wants to take electricity . Government is Interested to buy electricity from IPP as kill public with electricity bills

  6. There is no sense in saying the project as convertion of thermal plant into solar plant. it should be dealt with like a new solar plant with less investment in term of land cost and other substation equipment which is already available from the existing facilities.

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