Rumors of falling electricity prices in Pakistan have led to a sharp decline in the stock prices of photovoltaic (PV) equipment companies, particularly impacting leading inverter manufacturer Deye Technology.
The company stated that while Pakistan is an important overseas market, it has not received any definitive news regarding significant price drops, and market fluctuations are influenced by various factors. Other PV-related firms, such as Mibao Technology and Hema Technology, also experienced declines.
Pakistan has become a key market for Chinese PV companies, with Asia surpassing Europe as the largest export market for solar products in the first half of the year, and Pakistan emerging as the second-largest export market for modules. Despite ongoing electricity shortages and a reliance on thermal power, the potential for PV development in Pakistan is significant, with government support for renewable energy and a target to increase its market share by 2025.
The rising electricity prices have driven demand for solar storage solutions. Deye Technology noted that the surge in electricity prices is linked to fuel shortages. The Pakistani government aims to boost revenue in the power sector through price increases, with average electricity prices rising by 19% and residential rates increasing by 104-138% since 2020. High electricity prices enhance the economic viability of solar storage systems, and further price hikes are expected to boost demand.
Despite the rumors of price reductions, the outlook for Pakistan’s PV market remains positive, with projected installed capacity reaching 12.8 GW by 2030 and 26.9 GW by 2047. Overall, the demand for solar energy in Pakistan is rapidly growing.
