Sheikhupura: Nishat Mills Ltd. (NML) has entered into an agreement to install Battery Energy Storage Systems (BESS) and Solar Power Setups at its plant on the Sheikhupura Faisalabad Road. The project, scheduled for commercial commissioning in March 2027, aims to reduce power costs and enhance the renewable energy component of NML's power mix.

According to AKD Securities Limited, the installation will include BESS with a capacity of 35MWh and solar power setups of 20MW. The project is designed to optimize the generation-consumption cycle by storing a portion of the daytime solar generation for use during peak hours. The company expects approximately 7MW of the system’s capacity to be allocated to battery storage, while the rest will be consumed directly. The total projected capital expenditure for the project is estimated to be around PkR4.0 billion.

The integration of the solar and battery system is anticipated to generate after-tax annual savings of PkR426 million. Additionally, if the capital expenditure is lower than expected, savings could increase further. AKD Securities Limited maintains a 'Buy' stance on NML, supported by factors such as recovery in standalone textile earnings, declining finance costs amid lower interest rates, and improving growth prospects across NML's investment portfolio.