Pakistan, Chinese firm sign $200 mln deal to convert thermal power plant on solar energy

ISLAMABAD: Pakistan has signed a $200 million agreement with a Chinese firm for the conversion of a thermal power plant on solar energy, Pakistani state media reported on Saturday.
The agreement, which was realized through Pakistan’s Special Investment Facilitation Council (SIFC), would help upgrade an existing thermal power plant to a 300-megawatt solar power plant, the state-run Radio Pakistan broadcaster reported.
“The project will generate 400 million units of electricity per year at a significantly lower cost, reducing the cost from forty-five rupees to fourteen rupees per unit,” the report read.
“The project will eliminate the need for Heavy Fuel Oil (HFO).”
The conversion of the project on solar energy is estimated to save $44 million annually due to a reduction in import bills and offer attractive returns to stakeholders.
Cash-strapped Pakistan lacks adequate resources to run its oil- and gas-powered plants and imports most of its energy needs. The South Asian country is struggling with a balance of payments crisis, record inflation and steep currency devaluation.
In order to deal with the problems, Islamabad is currently looking to secure cheaper energy imports and find alternate ways to lessen the cost of power generation.