Pakistan, as a developing nation, faces the significant challenge of a substantial portion of its population living below the poverty line, a situation exacerbated by an ever-increasing demand for energy. The energy landscape in Pakistan heavily relies on fossil fuels, which constituted 64% of our energy mix in 2023. Hydropower and other renewables account for a mere 27% and 9%, respectively. This composition underscores the pressing need for a transformative shift in our energy sector. Regrettably, our nation's utilization of renewable energy sources remains disproportionately low, representing only a minor segment of the overall energy matrix. Over the past few decades, Pakistan's efforts to harness renewable energy have been limited and fall short
of the noteworthy strides made by our counterparts on the global stage. This deficiency in
renewable energy development presents a formidable challenge, most notably in the domains of
power and gas supply, where recurrent load shedding lasting 8-10 hours or more has become a
lamentable norm. This dire situation has ushered in a cascade of consequences, including surging
energy prices, a decline in the rule of law, exacerbated unemployment, and food scarcity issues.
Collectively, these challenges serve as formidable barriers to the sustainable growth of our national
economy. It is imperative to recognize that Pakistan possesses vast untapped potential for the
utilization of renewable energy. Our nation is endowed with abundant sources of solar, wind, and
hydropower energy, which remain largely untapped. The time has come to embark on a concerted
effort to unlock and harness this formidable potential, not only for the betterment of our nation but
also for the realization of our sustainable development goals.
Crucial Role of Energy in Fostering Economic Growth
Energy undeniably holds a pivotal role in fostering economic growth and indicating a nation's
progress. It serves as the lifeblood of industrial production, indispensable for manufacturing,
processing, and various industrial activities. A reliable and cost-effective energy supply stands as
a fundamental prerequisite for the flourishing of industries, which, in turn, acts as a prime driver
for overall economic development. Furthermore, a well-functioning energy sector is instrumental
in the creation and maintenance of critical infrastructure, encompassing vital domains such as
transportation, communication, and healthcare. Energy is the linchpin that powers transportation
systems, sustains data centers, and ensures the seamless operation of critical medical equipment. These contributions are not only instrumental for day-to-day functioning but are also the building
blocks for a prosperous society.
In the realm of global economics, a reliable energy supply emerges as a decisive factor in attracting
foreign direct investment. Businesses, when seeking regions for expansion and growth, gravitate
towards areas with stable and affordable energy sources. The reliability and affordability of energy
not only spur domestic business growth but also bolster a nation's ability to export energy or
energy-intensive goods, thereby bolstering foreign exchange earnings and enhancing trade
opportunities. In essence, a well-managed and robust energy sector is a linchpin in driving
industrial expansion, generating employment opportunities, all while enticing investment and
elevating a nation's overall infrastructure. It contributes significantly to the overall economic
prosperity of a country, laying the foundation for sustainable development. Furthermore, it is
essential to underscore that a well-structured energy sector not only bolsters economic growth but
also paves the way for environmental sustainability and an improved quality of life for its citizens.
Hence, it is indisputable that a country's progress can be astutely gauged through the lens of its
energy production and consumption. This pivotal facet serves as an indomitable harbinger of a
progressive future, steering nations toward economic success, technological advancement, and a
higher standard of living for their populace
Pakistan's Energy Crisis
Pakistan is facing energy crisis not only due to overreliances on fossils fuels as well as
mismanagement and negligence in past 10 to 15 years. Short term planning, lack of resources,
negligence also contributesto this factor.In 1987, a policy decision prohibited the Water and Power
Development Authority (WAPDA) from investing in thermal generation plants, which eventually
led to power shortages. By the early 1990s, these shortages were causing serious issues. WAPDA
and Karachi Electric Supply Corporation (KESCO), responsible for national power supply, faced
significant losses due to corruption, inefficiency, and mismanagement. Due to financial
constraints, the government was unable to invest in capacity building or upgrade existing plants.
To address the energy sector's problems, the government turned to private entities, hoping
competition would improve the public sector's performance. The 1994 power policy offered
generous incentives for Independent Power Plants (IPPs), attracting investments and increasing
production capacity. However, the 1994 policy relied on expensive oil-based generation, leading
to higher costs that were not accurately reflected in tariffs, straining WAPDA's finances. The 2002
energy policy continued these practices without a preference for energy source. This encouraged
the private sector to rely on thermal power plants using expensive furnace oil and natural gas. A
significant flaw in both policies was the lack of government oversight regarding the efficiency of
IPPPs, allowing power plants to operate without checks and balances. In summary, the energy
policies of the past two decades have contributed to the current crisis due to high costs and
unsustainable thermal-based energy production. All this corruption. Lack of investment,
innovation, future planning has led us to severe energy shortage which should be addressed as
soon as possible
Transitioning Pakistan from Fossil Fuels to Renewable Energy Sources
Pakistan is heavily dependent on fossil fuels and needs to transition towards renewables not only
for a sustainable future but to diversify its energy mix, reducing costs as well as increasing energy
security. To ensure a sustainable energy future for Pakistan, it is necessary that the energy sector
be accorded a high priority. Pakistan remains predominantly reliant on fossil fuels as its primary
source of energy. Efforts to reduce reliance on fossil fuels through increasing the share of
renewable energy in the energy supply systems have met with little success so far (Umar et al.).
the barriers in this transition include
• Policy and regulatory barriers
• Market related barriers
• Fiscal and financial barriers
• Technology barriers
• Information and social barriers
Lack of well-defined policies for private participation and delays in clearances and allotments for private sector projects hinders private participation in renewable energy projects. Absence of a central body for overall coordination of energy sector activities results in duplication of R&D activities. The lack of legislations, approved energy policies and regulations leads to situation where subsidies etc. can mean biases and often no effective control of electricity prices Lack of successful and replicable business models hinders renewable energy technology adoption. The current energy generation cost from renewable energy sources is high, due to high-capital cost and low-capacity factor in comparison to conventional power-producing options. General information and public awareness in relation to new technologies and understanding the practical problems in implementing and maintaining renewable energy projects is limited. This all is hindering our way towards a renewable future
• Policy and regulatory barriers
• Market related barriers
• Fiscal and financial barriers
• Technology barriers
• Information and social barriers
Lack of well-defined policies for private participation and delays in clearances and allotments for private sector projects hinders private participation in renewable energy projects. Absence of a central body for overall coordination of energy sector activities results in duplication of R&D activities. The lack of legislations, approved energy policies and regulations leads to situation where subsidies etc. can mean biases and often no effective control of electricity prices Lack of successful and replicable business models hinders renewable energy technology adoption. The current energy generation cost from renewable energy sources is high, due to high-capital cost and low-capacity factor in comparison to conventional power-producing options. General information and public awareness in relation to new technologies and understanding the practical problems in implementing and maintaining renewable energy projects is limited. This all is hindering our way towards a renewable future
Paving the Way for Pakistan’s Sustainable Energy Future
Ensuring financial stability is paramount to address the challenges in Pakistan's energy sector. This
includes tackling corruption within existing energy institutions and facilitating affordable access
to solar power for residential areas. Such measures not only pave the way for a sustainable energy
future but also alleviate the burden on our energy grid. To effectively combat electricity shortages,
it is imperative to strategically plan and execute the development of new power plants and the
construction of dams. These actions will bolster the capacity of our energy infrastructure,
mitigating the recurring shortages that have plagued the nation.
Persisting in our reliance on fossil fuels would be detrimental, as it would expose us to severe
consequences, one of which is already upon us in the form of climate change. Climate change is a
looming threat that we currently lack the resources to adequately mitigate. The repercussions are
evident in the deteriorating air quality, with cities like Lahore being particularly hard-hit by the
scourge of SMOG. The urgency of the situation demands a comprehensive plan for the integration
of renewable energy sources, which not only ensures a sustainable energy future but also
contributes to environmental and public health improvements.
Conclusion
In navigating the energy challenges that Pakistan faces, it is imperative to recognize the vital role
that a sustainable and diversified energy sector plays in the nation's progress and prosperity.
Pakistan's heavy reliance on fossil fuels has not only led to energy shortages but has also
contributed to environmental degradation and financial inefficiencies. These challenges are further
exacerbated by the historical mismanagement and negligence in the energy sector.
To ensure a sustainable energy future, Pakistan must prioritize the transition to renewable energy
sources. This transition is essential not only for environmental sustainability but also for reducing
costs and increasing energy security. However, several barriers, including policy and regulatory
constraints, market-related issues, fiscal and financial challenges, technological obstacles, and a
lack of information and public awareness, have hindered progress in this direction.
Addressing these barriers and fostering financial stability are paramount. Tackling corruption
within energy institutions, facilitating access to affordable solar power for residential areas, and
strategically planning the development of new power plants and the construction of dams are
crucial steps to overcome these challenges. Moreover, Pakistan must acknowledge the looming
threat of climate change and the deteriorating air quality in its cities, such as Lahore, and take
decisive action toward integrating renewable energy sources into the national energy mix. In
conclusion, the path to Pakistan's sustainable energy future is paved with challenges, but it is also
laden with opportunities. By prioritizing renewable energy, addressing barriers, and fostering
financial stability, Pakistan can not only ensure a prosperous and resilient energy sector but also
contribute to a cleaner and healthier environment for its citizens. It is a journey that requires
collective effort and a commitment to a brighter and more sustainable future for all.