4 days ago
- Business
- Business Recorder
Pakistan's lithium battery imports soar, projected to hit 8.75 GWh by 2030: report
Driven by high electricity costs and falling solar prices, the imports of battery storage systems (BESS) have accelerated at breakneck speeds in Pakistan and are projected to rise to 8.75 gigawatt-hours (GWh) by 2030, according to US-based Institute for Energy Economics and Financial Analysis (IEEFA).
'Pakistan imported an estimated 1.25 GWh of lithium-ion battery packs in 2024 and another 400 megawatt-hours (MWh) in the first two months of 2025, a trend that is likely to continue,' IEEFA stated in its latest report titled 'Battery storage and the future of Pakistan's electricity grid'.
This could increase to 8.75 GWh, or 26% of the projected peak demand in 2030, 'if business as usual persists,' it said.
'Such a shift could lead to stranded peak generation assets and higher financial losses for the grid,' IEFFA warned.
The report found Pakistan's growing adoption of battery storage is supported by lithium-ion battery imports from China.
China exports more solar panels to Pakistan than to many G20 nations in 5 years: report
'While solar PV module prices in Pakistan have consistently declined, emulating improving economics in China, the same is not true for BESS because of high taxes and customs duties. The average price of lithium-ion battery packs in Pakistan ranges between $230/kWh and $360/kWh.'
However, despite high taxes, solar-battery combinations seem attractive for consumers, with installations continuously increasing, IEEFA said.
'Solar with BESS has a payback period of 3-5 years in Pakistan's residential sector despite a 48% cost increase from surcharges and duties on lithium-ion batteries. The payback period ranges between 4-6 years for the commercial and industrial sectors, depending on battery size or usage requirements,' it found.
The report noted that Pakistan's high penetration of rooftop solar generation can provide a strong foundation for large-scale battery storage adoption in a distributed manner.
'If sustained through further fiscal support and regulatory incentives, this could mean minimal investment requirements for new generation assets for the government at a central level,' it added
From crisis to clean energy: Pakistan emerges as top solar market in 2024
However, a lack of grid modernisation and strong regulatory support remain key barriers that should be addressed to ensure an efficient energy transition in Pakistan, the report noted.
'Unmanaged BESS growth could destabilise Pakistan's national grid by reducing demand and raising capacity payments.
'Timely investments in grid modernisation, smart metering, and regulatory updates can enable decentralised solar plus BESS configurations, avoiding expensive generation expansion and supporting strategic power planning.'
