Pakistan is facing a major energy crisis as years of corruption and mismanagement has made the country into a basket case. Thousands of SMEs are facing bankruptcy due to long hours of power blackouts which can range for 14-20 hours a day. With the country’s government facing questions of legitimacy and survival, the energy crisis seems nowhere near a solution. The country is looking towards Chinese investment in its power sector to revive the energy industry. Investments are being sought both in the wind and solar power sectors. However the choice of companies which are poised to build solar power plants are themselves near insolvency.
Conergy which used to be the world’s biggest solar EPC company has already gone through a torrid phase in which the parent arm has gone through court proceedings of bankruptcy. That company will now build a 50 MW power plant in Cholistan. Suntech which is another company which has seen its stock price collapse 95% from its peak due to questionable management is projected to build 100 MW of solar power capacity. Note Suntech is also groaning under a huge debt burden similar to Pakistan which needs IMF help to fund its budget. It seems questionable why solar energy in Pakistan is attracting such strange bedfellows.