Beco Steel commences installation of 5MW solar power plant

Beco Steel Limited said on Wednesday it had commenced the installation of a 5-megawatt solar power plant, which is projected to generate an average of 600,000 Kwh of electricity per month.

The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) today.

“We are pleased to disclose the following material information: In continuation of our earlier disclosure regarding the Company’s expansion plan, including installation of a solar power plant as part of the project, the Company is pleased to inform that the construction and execution of the project has started,” the company shared.

Last year, the steelmaker had signed an agreement with a renewable energy solutions provider to install a 2-megawatt (MW) solar power generation system at its Badami Bagh, Lahore plant.

Beco said that the system will be installed at its plant premises located in Badami Bagh, Lahore. “The total capital expenditure for this project is estimated at approximately Rs121 million,” it said.

The company shared that this “strategic investment” in green energy is projected to generate annual savings of approximately Rs129.65 million on the company’s energy costs.

Meanwhile, in its notice to the bourse on Wednesday, Beco said that the contract for solar panel installation was awarded, and necessary steps for the project’s procurement and arrangements were currently underway.

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“The company has applied for the requisite sanctioned load from the Lahore Electric Supply Company (LESCO). The solar panels installation and the enhancement of the sanctioned load are anticipated to be completed within approximately four months,” the listed company shared.

“This is expected to yield estimated cost savings of approximately Rs16.8 million per month, or Rs201 million on an annualised basis.”

There has been a growing shift towards alternative energy sources in Pakistan, especially solar, which has become increasingly popular among residential and commercial sectors.

Several projects have been initiated, and dozens of companies have installed solar power systems to exploit this relatively cheaper energy source.