Suntech Power Holdings Co., (STP), the world’s largest makes of silicon-based solar panels, today announced plans to expand its activities in Pakistan’s market. The company will partner with Pakistan’s Alternative Energy Development Board (AEDB) to “work towards the widespread use of solar energy technologies to meet the energy shortage in Pakistan.” The press release goes on to note:

The objective of the MOU is to facilitate cooperation between Suntech and the public sector and private companies in Pakistan to help implement solar programs including the AEDB’s Rural Electrification Program; the development of Solar Power Pumping Systems with the AEDB and the World Bank; and Solar Power Telecom Projects in collaboration with Pakistani telecom companies.

In light of on-going security challenges in Pakistan, it was refreshing to see this development-related story come through on the wire this morning.

UPDATE: For an interesting in-country take on solar’s potential in Pakistan, see this February 2009 post from Azfar Khan of All Things Pakistan. While Suntech’s entrance to the Pakistan market may conflict with one of Khan’s main conclusions — that Pakistan should become a major producer (and exporter) of solar panels — his point regarding off-grid applications of solar is well taken. Typically in rural areas it is far cheaper to install a well designed solar PV system with batteries than it is to “bring the grid to the people,” as it were.

A practical example of the use of solar energy could be seen in some villages of Pakistan where each house has been provided with a solar panel that’s sufficient to run an electric fan and two energy saving bulbs. Prior to this arrangement, the whole village used to be plunged in pitch dark during night. One such example is the village with the name of Narian Khorian, some 50 kilometers away from Islamabad, where 100 solar panels have been installed by a local firm, free of cost, to promote the use of solar energy among the masses. Through these panels, the residents of 100 households are enjoying light and fan facilities. Had these panels not been installed, the people living in this area wouldn’t have even dreamt of getting this facility for decades as the provision of electricity from the national grid was a far cry due to the difficult terrain and high expenses involved.

About 70 percent of Pakistan’s population — about 120 million people — live in some 50,000 villages across the country, many of which are beyond main electricity transmission lines. Bottom line: if Suntech and AEDB can get pricing and deployment right, the potential market may be huge.

For a brief overview, see this report (PDF) from the Solar Energy Research Centre.