DG Khan Cement Co has announced a major renewable energy initiative, signing an agreement with EBR Energy Pakistan (Pvt.) Limited, Sungrow Power Supply Co. Ltd. (China), and Pragmatic Engineering Solutions FZE to supply and erect a 25MW photovoltaic solar power plant and a 10MWh battery energy storage system (BESS) at its cement facility in Mauza Khofli Sattai, Dera Ghazi Khan.

According to the company’s disclosure to the Pakistan Stock Exchange (PSX), the project is expected to begin generating power by March 2027. The move underscores D.G. Khan Cement’s commitment to sustainable operations and energy efficiency within Pakistan’s industrial sector.

On this development, AKD Research said the project would increase the renewable portion of DGKC's power mix and use the BESS to optimise the generation-consumption cycle, storing a portion of daytime solar generation for discharge during peak hours. The analyst believes ~2MW of the system's capacity would be channelled into battery storage, while the remainder would be consumed directly.

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AKD Research anticipates total project capex of ~PkR3.8bn (US$13.67).

According to research house estimates, the newly integrated solar and battery system would deliver after-tax annual savings of PkR503mn (PkR1.15/sh). Additionally, lower-than-expected capex would increase expected savings.

By Abdul Rab Siddiqi, Pakistan