Mughal Energy Limited (MEL), a key subsidiary of Mughal Iron & Steel Industries Limited, has formally approved the installation of a 25-megawatt (MW) solar power plant. The renewable energy project is designed to offset auxiliary electricity consumption at the company’s existing power generation facilities.
According to a formal regulatory notification submitted to the Pakistan Stock Exchange (PSX) on Wednesday, the company’s board of directors greenlit the strategic project during a meeting held on November 4, 2026.
Financing Structure and Project Scope
The proposed solar facility will be dedicated primarily to meeting the internal auxiliary power requirements of Mughal Energy’s existing generation plant, thereby cutting down reliance on external power sources for day-to-day operational consumption.
Regarding the financial mechanics of the project, Mughal Energy confirmed that the development will be funded through a strategic blend of debt and equity contributions, which will include direct financial backing from sponsors and directors. However, the exact debt-to-equity ratio and the total estimated financial capital required for the project have not yet been finalised, remaining contingent upon upcoming commercial feasibility studies and banking arrangements. Furthermore, the company has not disclosed a specific timeline for completion or expected electricity output figures.
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Building on Recent Energy Milestones
This latest board approval comes on the heels of another major engineering milestone for the firm. In August 2026, Mughal Energy successfully commissioned the primary 31.50 MW turbine of its captive hybrid power plant project. Following rigorous testing phases, that unit achieved its Commercial Operation Date (COD) on August 31, 2026, marking its readiness for active commercial billing.
The integration of the new 25MW solar plant is expected to seamlessly complement these existing operations by lowering parasitic power losses and enhancing the overall cost-efficiency of the company’s energy generation matrix.
Mughal Energy operates as a specialised energy subsidiary under Mughal Iron & Steel Industries Limited, a prominent player in Pakistan’s ferrous and non-ferrous manufacturing sector renowned for producing high-grade mild steel products.