Germany signs €71 million deal with Pakistan to uplift renewable energy sector, assist flood-hit people

Internally displaced flood-affected people sit in their makeshift shelter in a flood-hit area following heavy rains in Dera Allah Yar town of Jaffarabad district in Balochistan province, Pakistan, on September 7, 2022. (AFP)
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Updated 29 December 2022
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Germany signs €71 million deal with Pakistan to uplift renewable energy sector, assist flood-hit people

  • Under agreement,  €46.2 have been allocated for construction of a 500-kilovolt grid station in Chakwal
  • Germany allocates €25 to support people displaced by recent floods, which affected 33 million people

ISLAMABAD: Pakistan and Germany on Thursday signed a €71 million agreement to improve power supply in parts of the South Asian country, and to support people displaced by devastating floods this summer, Berlin's envoy to Islamabad said.

The deal was brokered with the help of Germany’s KfW Development Bank, which closely cooperates with European Union institutions on behalf of the German Federal Government to increase the effectiveness of European development cooperation (DC).

Under the deal, which the German bank signed with the Pakistani government’s Economic Affairs Divison and the National Transmission and Despatch Company Limited (NTDC), €46.2 have been allocated for the construction of a 500-kilovolt grid station in Chakwal, a city in Rawalpindi division of the eastern province of Punjab.

Once constructed, the grid station would improve power supply not only to the industrial sector in Punjab but also to electric supply companies in Islamabad and Faisalabad.

Alfred Grannas, the German Ambassador to Pakistan, announced in a Twitter post on Thursday morning:

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He said out of the total of €71 million, €25 would be allocated to alleviate the condition of people displaced by recent floods, which claimed more than 1,700 lives, affected 33 million people, and incurred losses worth $30 billion, according to government estimates.

Grannas said Germany would also provide Pakistan an additional sum of €16.5 million to invest in solar energy projects to tackle climate change.

According to KfW’s Development Bank’s website, in line with the agreements signed between Pakistan and Germany to uplift the renewable energy sector, the bank co-funded both of Pakistan's main hydropower projects in Tarbela and Ghazi Barotha.


Chinese giant Hoymiles enters Pakistani market to provide high-tech energy storage solutions

Updated 05 January 2026
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Chinese giant Hoymiles enters Pakistani market to provide high-tech energy storage solutions

  • The development comes after Pakistan emerges as one of world’s fastest-growing solar markets, importing nearly 50GW of solar panels
  • Hoymiles entry will address long-hour backup and energy storage challenges facing Pakistan’s growing solar sector, local partner says

KARACHI: Renowned Chinese inverter manufacturer Hoymiles has entered Pakistan to provide high-tech, long-duration energy storage solutions for residential, commercial and industrial buildings by utilizing solar systems for electricity consumption, its Pakistani partner said on Monday.

Over the past few years, a large number of Pakistani industrial, commercial and residential electricity consumers have shifted to solar power systems to address frequent power outages and the rising cost of electricity. Reports indicate that net-metering capacity currently stands at 6,000 megawatts (MWs), while off-grid solar capacity has increased to 12,000 MWs in Pakistan by the end of 2025.

Hoymiles has formed strategic partnerships with Superstar, a renowned name in Pakistan’s automotive industry, and Harisun Energy, a new entrant in the energy solutions sector, to explore the Pakistani market, which is witnessing rapid growth in solar power adoption. In this regard, launch events were held simultaneously in Karachi and Lahore, unveiling multiple storage solutions produced by Hoymiles under the brands of Harisun Energy and Superstar.

Speaking as the chief guest at the Hoymiles launching ceremony in Karachi, Ali Rashid, advisor to Sindh chief minister on science and information technology (IT), said the provincial government appreciates foreign investors, particularly Chinese companies, establishing their industries, assembly, and distribution units in Karachi to meet the demand of the local market as well as export solutions to other countries.

“The government is working rigorously to facilitate foreign investors and companies to enhance their business and commercial activities, mainly in the technology and renewable energy sectors, to improve the living standards of the public and boost economic activity within the country and the province of Sindh,” he said.

The Sindh government is currently collaborating with various Chinese companies across different sectors, including logistics and renewable energy, and it welcomes further cooperation between the private and public sectors, according to Rashid.

The provincial government is considering establishing its own regulatory authority and transmission company, aimed at setting up a separate electricity grid system at the provincial level, which could provide affordable electricity to the masses and enhance connectivity to remote areas, preferably through renewable energy resources.

According to a report by the International Energy Agency (IEA), Pakistan has emerged as one of the world’s fastest-growing solar markets, importing approximately 50 GW of solar panels amid falling prices and widespread adoption across sectors in the first half of the year. This surge has made Pakistan the third-largest market for Chinese solar panels, a growth that has attracted global attention.

Superstar Solar Energy and Harisun Energy are introducing Hoymiles’ innovative range of solar inverters, energy storage solutions, and smart energy management systems to the Pakistani market. These solutions are designed to deliver reliable, efficient, and sustainable energy, empowering individuals and businesses to harness solar power as a clean and green energy source.

“Pakistan’s growing solar sector is facing a major challenge related to long-hour backup and energy storage solutions, which will soon be addressed with the entry of a global leader in energy solutions,” said Haris Jamsheed, CEO of Harisun Energy.

“Our partnership with the Chinese company will provide innovative energy storage solutions for residential, commercial, and industrial solar systems, enabling uninterrupted electricity supply at workplaces, factories, and homes during nighttime hours.”

Solarization has continued to expand across the country on a large scale due to prolonged load-shedding in remote areas and the high cost of electricity, which has become unaffordable for many households and industrial units, particularly in recent years.

“We have vowed to bring an energy revolution to Pakistan through innovative storage solutions, as the industrial and commercial sectors can enhance productivity with low-cost electricity backup systems,” said Saleem Umar, Chairman of Superstar.

“Affordable electricity will reduce operational costs at the domestic level, enabling exporters to compete more effectively in global markets.”