Renewable Energy in Pakistan

Solar system in Pakistan has become affordable as compared to conventional electricity. Renewable energy projects are now starting to compete with conventional power, proving they can replace conventional power in many countries, especially Pakistan.

Pakistan has set in motion a plan this week to boost the share of its electric power that comes from renewables to 30 percent by 2030, up from about 4 percent. The targets in the newly announced policy are a 20 percent share of renewables in installed capacity of Pakistan’s power mix by 2025 and 30 percent by 2030.

This not only include wind and solar power, but also geothermal, tidal, wave and biomass energy. With boosts in hydropower capacity expected as well, the shift could bring the share of clean energy in Pakistan's electricity mix to 65 percent by 2030.

However, the legislation leaves in place plans to build seven more coal-fired power plants as part of the second phase of the China Pakistan Economic Corridor project - something that could impede scale-up of renewable power.

The new national renewables policy, approved by the prime minister's cabinet in December, was delayed by the coronavirus pandemic and as negotiators tried to resolve disputes with individual provinces.

Now, the resolution of those disputes opened the way to "unleash Pakistan's full potential" for renewables, according to Asad Umar, federal minister for planning and development.

Shortage of energy is not new, successive Pakistani governments have pursued private sector investment in power production, offering lucrative returns backed by sovereign guarantees.

Power cuts and scheduled outages, known as load shedding, in urban areas were sharply reduced from about 12 hours a day previously to only occasional outages by mid 2018.

Despite the progress, seasonal production gaps and distribution woes remain. However, better than 2017, where prolonged power outages hit the country’s industrial production.

New investment in renewable energy is also expected to come from private investors, with potential suppliers bidding in annual auctions and low-tariff proposals winning.