250% surge! Behind the export of lithium batteries, this place has become a golden market for energy storage!

In Pakistan, power outages are no longer an incidental episode, but a normal part of people's lives. This South Asian country with a population of 220 million has been suffering from "power hunger" all year round due to its aging power grid, dependence on fossil fuels and high import costs. During the peak of power consumption in summer, the country's power outages can last up to 12 hours, hospitals shut down, factories paralyzed, and even stock trading forced to stop. However, God closed a door here, but opened a window: the "golden oil field" with an average annual sunshine of more than 300 days and a solar radiation intensity of 5-7 kWh/m² is becoming the key to unlocking the energy dilemma.

In Pakistan, frequent power outages not only seriously affect the quality of life of the people, but also bring huge losses to the national economy. It is estimated that the industrial losses caused by power outages exceed US$1 billion each year, and in order to cope with power outages, household users have to rely on diesel generators, which cost three times the power price of the power grid.

The cost of this "power outage economics" has made the Pakistani government and people deeply aware that they must find a reliable alternative energy solution. Therefore, the government decisively set a goal of 30% renewable energy by 2030, and introduced a series of encouraging policies, such as zero-tariff import of photovoltaic modules and provision of green low-interest loans. The introduction of these policies has led to the rapid rise of Pakistan's photovoltaic market.

At first, Pakistan implemented a net metering policy for photovoltaic grid connection. The surplus electricity connected to the grid can offset the self-use electricity bill, and the grid plays the role of "energy storage". Therefore, when the electricity price increases, the benefits of photovoltaics are more obvious, and more consumers turn to photovoltaics, resulting in a decrease in electricity bill income for the power sector, which goes against the original intention of the Pakistani government to raise electricity prices.

In response to this situation, the Pakistani government plans to adjust to a total metering policy. Similar to China, photovoltaics are connected to the grid at a low price and purchased from the grid at a high price, which will greatly reduce the return of photovoltaic grid connection, but it is good for energy storage.

With the guidance of policies and the gradual maturity of the market, more and more users will choose to distribute storage, or install off-grid photovoltaic storage systems.

At present, in the field of residential energy storage, household photovoltaic storage systems have gradually become rigid products. As the cost of lithium batteries continues to fall, more and more families are choosing to install solar storage systems to achieve a "self-sufficient" lifestyle. According to data from the General Administration of Customs, from January to April this year, China's lithium battery exports to Pakistan surged by 250% year-on-year, fully demonstrating the strong competitiveness of Chinese companies in this field.

In terms of industrial energy storage, industrial parks such as the Gwadar Port Economic Zone are equipped with 30-100kWh energy storage systems. These systems can not only reduce peak loads and fill valleys, reduce electricity costs, but also ensure that production lines operate 24 hours a day, thereby improving production efficiency and product quality.

The scale of Pakistan's energy storage market is continuing to expand. It is expected that by 2025, the market size will exceed the billion-dollar mark, with an average annual growth rate of more than 30%. In this process, the penetration rate of lithium batteries will continue to increase, and it is expected to reach 70% by 2025. At the same time, new technologies such as smart microgrids and AI-driven EMS will become the focus of the next wave of innovation. The integrated application of these technologies will further promote the upgrading and development of Pakistan's energy storage market.

Although Pakistan's energy storage market is full of opportunities, Chinese companies also face many challenges in the process of expanding the market.

First, the high initial cost is an important factor restricting the development of the market. The average price of a household energy storage system is about $2,000, which is far beyond the average annual income of an ordinary Pakistani family (GDP per capita is about $1,588). Therefore, how to reduce product costs and improve cost performance has become the primary problem that Chinese companies need to solve. Secondly, the lack of standards is also an issue that cannot be ignored. At present, Pakistan has not yet formed a unified standard system in terms of battery safety and energy efficiency standards, resulting in inferior lead-acid batteries in the market fighting in the low-end market, affecting the healthy development of the entire industry. Finally, talent shortage is also an important factor restricting market development. Due to the relatively complex and rapidly updated energy storage technology, the demand for professional talents is growing. However, Pakistan's current talent pool in energy storage technology is relatively insufficient and it is difficult to meet market demand.

Faced with these challenges, Chinese companies have adopted a variety of strategies to break through. In terms of cost, Chinese companies have reduced tariff costs (reduced by 10%-15%) through localized production, while avoiding possible future trade barriers. In addition, Chinese companies are actively exploring business model innovations such as "Energy Storage as a Service" (ESaaS) to reduce users' initial investment costs. Secondly, in terms of standards, Chinese companies actively participate in the formulation and promotion of international standards to promote the unification and standardization of industry standards. Finally, in terms of talent, Chinese companies have cultivated local technical talents by cooperating with Pakistani universities to set up energy storage laboratories and other means to reduce dependence on external talents. The implementation of these measures will not only help solve the current challenges, but also lay a solid foundation for the long-term development of Chinese companies in Pakistan's energy storage market.