Khushab: Pioneer Cement Limited (PIOC) has embarked on a substantial renewable energy project by signing an agreement with Pragmatic Engineering Solutions FZE and Sungrow Power Supply Co., Ltd., China. The initiative involves the installation of a 15MW/30MWh Battery Energy Storage System (BESS) and a 10MW solar array at its Chenki plant in Punjab, aiming to enhance energy efficiency and reduce power costs by March 2027.

According to AKD Securities Limited, the project is expected to bolster the renewable portion of PIOC's energy mix significantly. The BESS will facilitate the storage of solar energy generated during the day for use during peak demand hours, which is anticipated to contribute to grid stability and reduce reliance on grid electricity. It is estimated that approximately 12 million kWh of the system's capacity will be allocated to battery storage, with the rest consumed directly. The total capital expenditure for the project is projected to be around PkR2.4 billion.

The integration of the solar and battery systems is projected to yield an after-tax annual saving of approximately PkR257 million, equivalent to PkR1.1 per share. Potential reductions in capital expenditure could further enhance these anticipated savings. The initiative marks a significant step towards sustainable energy use for Pioneer Cement, aligning with global trends in reducing carbon emissions and optimizing energy consumption.