By Muneeb ur Rehman

Amid the fast shift towards renewable sources of energy at the global level, Pakistan also needs to set its priorities right and focus on local solar panel manufacturing to tackle the challenges posed by the increasing use of costly fossil fuels in producing power. Talking to WealthPK, Mubashar Hassan, Managing Director of Alpha Renewables Private Limited, said that the promotion of local manufacturing of solar panels was all the more important to materialise the government’s plan of providing affordable and sustainable energy to its citizens.

According to the latest updated data of the International Renewable Energy Agency (IRENA), Pakistan’s cumulative solar power capacity now stood at 1.24 gigawatts in 2022, reflecting a 17% growth from the previous year. Hassan said that currently, Pakistan imported the essential raw materials for solar panels, which inflated the country’s import bill, putting too much strain on foreign exchange reserves. He said there was a need to encourage the domestic manufacturing of these raw materials to meet the rising demand for solar panels.

While mentioning the input used in the manufacturing of a solar panel, he underscored that the presence of allied industries pertaining to glass and aluminum in Pakistan made it highly feasible to manufacture glass and aluminum frames for solar panels locally. The size of the solar energy market in Pakistan is projected to grow to 1.30 gigawatts by the end of 2023, and it is anticipated to expand by 49.68%, reaching 9.77 gigawatts by 2028.

Hassan highlighted the issues that needed to be addressed in a timely manner, underscoring the need for substantial investment in research and development. “To establish a thriving indigenous solar panel manufacturing industry, Pakistan needs to invest significantly in research and development. This will not only foster innovation but also allow the country to develop cutting-edge technologies and processes.” He added that the manufacturing of solar panels was in line with the government’s National Solar Energy Initiative, which aims to generate 10,000 megawatts of electricity from upcoming solar energy projects during the next year. “This initiative seeks to diminish the need for expensive diesel and furnace oil imports.”

To promote local manufacturing, collaboration with various stakeholders, including local solar panel manufacturers, provincial energy departments, research institutions, academic institutions, end-users, and government agencies at both federal and provincial levels is crucial, he asserted. The lack of local production of solar panels in Pakistan poses barriers to achieving cost-effective and environment-friendly energy solutions. Therefore, it is crucial to encourage solar manufacturing through the implementation of appropriate policies and incentives.

Credit: INP-WealthPk