Cherat Cement Company Limited (CHCC) is taking decisive action against escalating electricity costs. The company has announced a massive investment of approximately Rs. 1.85 billion. This investment will fund a new Battery Energy Storage System (BESS) and additional solar power capacity.
The cement manufacturer disclosed this development in a notice to the Pakistan Stock Exchange (PSX) on Friday. According to the notice, the Board of Directors approved the installation of a 25 megawatt (MW) BESS. Additionally, they approved a 5.4MW solar power plant.
Cherat Cement: Project Details & Timeline
Cherat Cement will install these new systems at its manufacturing facility in Nowshera, Khyber Pakhtunkhwa. The company aims for speed. They stated that the project would be completed within six months from the start date.
Furthermore, this is not their first venture into renewable energy. Last year, Cherat Cement commissioned a 6.065MW solar power plant at the same facility. This new Rs. 1.85 billion investment significantly strengthens their renewable portfolio. The company explicitly stated that this move will reduce its rising power costs.
A Growing Shift to Solar
Cherat Cement is not alone in this transition. Pakistan is witnessing a major shift toward alternative energy sources. Specifically, solar energy has become increasingly popular in both residential and commercial sectors.
Data from the Policy Research Institute for Equitable Development (PRIED) highlights this trend. The independent think tank reports that Pakistan now has an installed capacity of 33 gigawatts (GW) in solar photovoltaic (PV) panels. Consequently, this surge in solarisation challenges decision-makers regarding the national grid, as electricity consumption remains stagnant.
Other companies are following suit to exploit this cheaper energy source. For instance, Kohinoor Mills Limited (KML) recently completed an additional 2.7MW renewable energy project last month. This expanded their total solar generation to 7.2MW.
