Lucky Cement, a prominent construction material manufacturer, has successfully initiated its second captive solar power plant, a significant step aimed at cost reduction and maintaining profitability amid challenging macroeconomic conditions in Pakistan.
In a recent announcement to the Pakistan Stock Exchange (PSX), the company joyfully revealed the completion and commencement of operations of its 25MW captive solar power plant, situated at its manufacturing site in Karachi, effective from August 20, 2023. This project, which required an estimated investment of Rs3 billion, is expected to yield substantial annual savings, nearly amounting to Rs480 million.
This latest solar power plant further elevates the company’s self-consumption capacity from renewable sources to 39%, with the inclusion of a 34MW solar power plant commissioned in December 2022 at its Pezu facility and waste heat recovery plants at both locations.
Faisal Mahmood, GM Finance and Company Secretary, expressed, “The combined capacity of both solar power plants has significantly bolstered our commitment to renewable and clean energy.” He highlighted the project’s role in reducing costs and decreasing the nation’s reliance on imported fuel, emphasizing the company’s dedication to environmentally conscious initiatives.
Lucky Cement has been enjoying robust financial performance, reporting a net profit of Rs48.5 billion in the first nine months of the fiscal year 2022-23, marking an impressive 83% increase from the previous year. This positive trend can be attributed in part to the profitability of Lucky Electric Power Company Limited (LEPCL).
The introduction of this solar power project aligns with the government’s vision to increase the share of renewable energy in the country’s total power production to 30% by 2030, significantly surpassing the current 6-7%.
However, concerns have been raised by solar power marketing firms regarding limited bank financing for solar equipment imports and inconsistencies in government renewable energy policies, which have hampered the progress of solar projects.
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