Dera Ghazi Khan: D.G. Khan Cement Company Ltd. (DGKC) has entered into an agreement to implement a 10MWh Battery Energy Storage System (BESS) and a 25MW solar power setup at its plant in Mauza Khofli Sattai, Dera Ghazi Khan. The installation is anticipated to commence commercial operations by March 2027, aiming to reduce power costs.

According to AKD Securities Limited, the initiative is set to enhance the renewable energy component of DGKC's power supply. The strategy involves utilizing the BESS to optimize the generation-consumption cycle, with a portion of the solar energy generated during the day stored for use during peak hours. It is estimated that approximately 2MW of the system's capacity will be allocated to battery storage, while the rest will be used directly. The total capital expenditure for the project is projected to be around PkR3.8 billion.

The newly integrated solar and battery system is expected to generate after-tax annual savings of PkR503 million (PkR1.15 per share). The project might yield further savings if the actual capital expenditure is lower than anticipated. AKD Securities Limited has issued a 'BUY' recommendation for DGKC stock, with a projected target price of PkR389 per share by December 2026. The positive outlook is based on the anticipated boost in profitability due to supportive gross margins, increased sales, and lower interest rates.