Cherat Cement Co Ltd has approved a new renewable energy project involving the installation of a 25MW battery energy storage system (BESS) alongside a 5.4MW solar power plant at its factory site in Nowshera, Khyber Pakhtunkhwa.
The company said its board sanctioned the project through a circular resolution on 16 January 2026. The total investment is estimated at PKR1.85bn (US$6.6m), according to a filing with the Pakistan Stock Exchange (PSX).
Cherat Cement said the project is intended to strengthen its renewable energy capacity while helping to offset rising electricity costs. Once completed, the combined BESS and solar facility is expected to improve energy reliability at the plant and reduce exposure to grid-related power price volatility.
The company expects the project to be completed within six months of commencement. Cherat Cement has requested the PSX to circulate the information to relevant market participants, citing its material significance to stakeholders.
The investment forms part of a broader trend among Pakistani cement producers to increase the use of alternative and renewable energy sources in response to high power tariffs and ongoing pressure on production costs.
