Standing in the middle of a vast, sun-drenched desert, surrounded by towering windmills, yet shivering in the cold, reflects our country’s energy predicament. Blessed with abundant renewable resources, Pakistan continues to suffer through energy crises.
Load shedding, or planned power outages, has become a common occurrence, incapacitating industries and disrupting daily lives. With a heavy dependence on imported fossil fuels, the country struggles with price fluctuations and supply disruptions. According to the National Electric Power Regulatory Authority’s (NEPRA) 2022 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, and 59 percent of energy comes from thermal energy sources (fossil fuels). The overdependence on fossil fuels has caused numerous challenges: high costs, energy insecurity and environmental degradation. The country’s energy crisis is further exacerbated by outdated infrastructure and insufficient natural gas supplies. The solution lies in embracing renewable energy sources rather than clinging to the false vestiges of fossil fuels.
Pakistan’s energy crisis can be addressed through the multifarious solutions of renewable energy, taking a page out of the books of Morocco, Brazil and India, all of whom have successfully leveraged multiple renewable sources to reform their energy landscapes, promoting economic growth. Pakistan has an abundance of natural resources which can be harnessed: wind, solar, hydro and biomass.
Pakistan is ideally situated to harness solar energy with an average of over 300 sunny days per year. The country has a noteworthy solar energy flair, estimated at around 2.9 million MW. According to the International Renewable Energy Agency (IRENA), the country receives solar radiation equivalent to 1,700-2,300 kWh/m² annually, surpassing global averages. This vast potential, paired with increasing energy demands and environmental concerns, has led to the prominence of solar power development, the World Bank confirming this potential.
The Alternative Energy Development Board (AEDB) of Pakistan, a promoter of renewable energy, has set aspiring targets for solar generation, aiming to achieve 30 percent of the country’s power from renewable sources by 2030. Yet, solar energy’s contribution to the country’s national grid remains negligible. Morocco’s Noor Solar Complex offers a prime example of how leveraging international funding and public-private partnerships can unlatch a country’s solar prospects. According to the World Bank, this is the world’s largest concentrated solar power plant and has not only boosted Morocco’s energy production but has also spurred economic growth by creating jobs.
Furthermore, according to the National Renewable Energy Laboratory (NREL), Pakistan’s coastal regions and wind corridors, particularly in Sindh and Balochistan, are capable of generating 50,000 MW of electricity annually. The Jhimpir Wind Corridor alone could meet a major portion of the country’s demand, as the wind corridor has a gross wind power capacity of 50,000 MW. Currently, it provides over 70 percent of Pakistan’s total wind power generation. Additionally, there are over 20 operational wind farms in the JWC, with more in the development phase. The average speed is over 7 meters per second, making it an ideal location for wind power generation. Pakistan’s total electricity demand is around 30,000 MW. With the potential to generate 50,000 MW, the JWC alone could, theoretically, exceed this demand. A case in point is Denmark’s remarkable journey in wind energy, which serves as a riveting model for Pakistan. In 2019, wind power contributed a sizable 47 percent of Denmark’s electricity supply, a testament to decades of strategic policy-making, technological innovation, and unwavering commitment to renewable energy. The country implemented policies like feed-in tariffs and tax incentives to encourage investment and development. Vestas, a Danish company, has a become global leader in manufacturing turbine technology. The International Energy Agency (IEA) reports that Denmark has the highest share of wind power in its electricity mix among OECD countries. Moreover, the Global Wind Energy Council (GWEC) data shows Denmark’s impressive contribution to global wind power capacity and its leadership in wind turbine manufacturing.
A paper by The University of Leeds on Agricultural Waste Biomass Energy Potential In Pakistan, reports that agriculture alone contributes over 20 percent to Pakistan’s GDP, generating ample biomass waste. This waste could be converted into biogas and bioenergy, providing sustainable energy sources while addressing waste management issues. However, the country has made negligible progress in harnessing this resource. One noteworthy initiative is Pakistan Environment Trust (PET)’s BioVentures project, which promises to reduce emissions and improve AQI by making use of biomass energy. The project Net Zero Pakistan initiative (NZP), focuses on sustainability and aims to establish a national-level supply chain, while Zarea, Pakistan’s largest B2B commodities platform, plays a central role in connecting industries with high-quality biomass products. Zarea provides access to locally sourced biomass materials like bagasse, rice husk, and corn cobs helping businesses transition to greener, more cost-effective energy sources. However, as Pakistan’s biomass generation is low, in terms of global standards, the amount of waste produced can be easily repurposed, Brazil is an example of successful biomass integration, as, according to a report, Implementation of Bioenergy in Brazil 2021 Update by the IEA, biomass contributes approximately 8.4 percent to the total energy supply.
In 2022, Pakistan’s hydropower generation reached an astounding 34.58 billion kilowatt hours, demonstrating the substantial contribution of this renewable energy source to the country’s energy production. The hydropower capacity stood at 10.83 million kilowatts, adorning the existing infrastructure’s capacity to tackle water resources for energy production. Moreover, the total potential for hydropower in Pakistan is estimated to be around 60,000 megawatts, stipulating valuable room for growth and development in this sector which have been halted by issues such as inefficiencies, political delays and a lack of funding. China’s Three Gorges Dam is a prime example of the potential of large-scale hydroelectric projects. It produces 22,500 MW of power, significantly contributing to China’s energy. Its installed capacity of 22,500 MW illustrates the ability of hydropower to meet energy demands sustainably, producing 101.6 TWh in 2018. The construction cost of this project was $31.765 billion, a testament to the investment required for such infrastructure, but its contribution to total energy supply justifies the cost and the challenges associated with acquiring such a budget.
Pakistan’s move to renewable energy sources has been fraught with obstacles: political instability, infrastructural deficiencies and financial constraints, with the high public debt-to-GDP ratio, reaching 73.5 percent in FY22 limiting the government’s ability to allocate sufficient funds towards the promotion of sustainable energy without highlighting it’s debt. With the debt-to-GDP ratio increasing, the reliance on borrowing makes it impossible to set aside funds for such projects. Short-term gains and personal interests have further affected Pakistan’s policymaking, with fossil fuel lobbies hindering the progress of renewable energy initiatives, as such was evident in 2021 when the government moved to shelve these projects in favour of coal power plants. The decision was driven by political pressure which argued that coal was a more reliable, immediate solution. This not only delayed renewable energy projects, but also exacerbated environmental concerns and the financial burden of importing said fossil fuels.
Pakistan stands at a crossroads, facing the dual crises of energy scarcity and environmental degradation. The shift to renewable energy is not just a choice but an imperative for sustainable development. The time for half-measures has long passed. The question still stands as to whether the state will rise to the challenge or let the opportunity slip away, leaving future generations to pay the price.
Outdated grid infrastructures pose significant challenges to the efficient integration of renewable energy sources. A case in point is the NTDC-Jhimpir Battery Energy Storage System, a 20,000 kW project in Sindh, which sheds light on the nascent stage of energy storage solutions in the country and how a lack of smart grids worsens these issues. The absence of transmission lines coupled with a lack of smart grids hampers progress, as chronic under-investment has left many areas underserved, with a majority of the population lacking reliable access to electricity, highlighting the importance of modernisation and targetted investments needed to harness the full potential of these resources.
Countries such as Morocco serve as examples of how international funding can be secured for renewable energy projects, with schemes like carbon trading and green bonds attracting institutions such as the World Bank, ADB and UNDP. Reformation of rules is also necessary, as India’s National Solar Mission shows how incentives, information and consistency promote renewable energy expansion. By enacting tax incentives and subsidies, Pakistan can improve its relationship with private investors and grid infrastructure. Supporting decentralised energy solutions like microgrids and rooftop solar panels, as done in Germany’s Energiewende policy, can integrate renewable energy within the country, making it easier to access in remote areas.
Renewable energy projects could aid economic growth, creating jobs in manufacturing, installation and maintenance, while reducing dependency on imported fossil fuels and reducing environmental degradation. According to the International Renewable Energy Agency (IRENA), solar PV creates twice as many jobs per MW compared to fossil fuels. Iceland generates 100 percent of its electricity from renewable sources, which keeps it at a strategic advantage.
Then, if policies are devised clearly, it can position Pakistan as an attractive destination for green investors. India’s renewable energy sector attracted $11 billion in 2022, which denotes that the country has the potential of a well-regulated market. In addition to all of this, the cost of renewable energy technologies, especially wind and solar, has drastically decreased. By switching to these sources, electricity costs can be reduced, relieving financial strain on businesses and households.
Pakistan stands at a crossroads, facing the dual crises of energy scarcity and environmental degradation. The shift to renewable energy is not just a choice but an imperative for sustainable development. The time for half-measures has long passed. The question still stands as to whether the state will rise to the challenge or let the opportunity slip away, leaving future generations to pay the price.
