Pakistan is witnessing a shift in its power panorama because the nation embraces photo voltaic photovoltaic (PV) and battery power storage techniques to fight “power” energy shortages and excessive electrical energy prices.
In 2024, Pakistan imported 17GW of photo voltaic PV and an estimated 1.25GWh of lithium-ion battery packs, marking an addition to its 40GW of complete put in capability.
This pattern is projected to proceed, with battery imports probably reaching 8.75GWh by 2030, sufficient to satisfy over 1 / 4 of peak demand, whereas photo voltaic may cowl most daytime energy necessities.
The surge in photo voltaic and batteries is just not solely driving down power prices for Pakistani customers but in addition enhancing reliability and contributing to the nation’s power sovereignty by decreasing dependence on imported fuels.
Nonetheless, this transformation poses new challenges for grid resilience and system integration.
The speedy progress of distributed power is making a divide between grid-dependent customers and people who can afford off-grid options resembling rooftop photo voltaic and batteries.
This “uncoordinated” growth raises crucial questions for Pakistan’s nationwide grid, together with equity in cost-sharing and the influence of “take-or-pay” agreements with legacy gasoline and coal crops.
In 2024, Pakistan’s Nationwide Electrical Energy Regulatory Authority (NEPRA) reported that capability funds to energy crops exceeded PKR2tn ($7bn), a value that have to be recovered by way of larger tariffs on a diminishing buyer base.
To handle these challenges and make the power transition extra inclusive, the nation is exploring financing mechanisms resembling blended finance and concessional loans.
Establishments such because the Asian Growth Financial institution (ADB) and Inexperienced Local weather Fund (GCF) are already supporting tasks such because the Pakistan Distributed Photo voltaic Undertaking, which leverages a GCF-backed assure to finance photo voltaic installations by way of the State Financial institution of Pakistan’s renewable power scheme.
Pakistan’s power transition additionally underscores the necessity for utility-scale photo voltaic tasks to enrich rooftop and distributed techniques, important for assembly rising demand and facilitating the transition.
Financing options should cater to all segments of the inhabitants to make sure that the speedy shift to photo voltaic and storage advantages your entire energy system.
Different rising economies can draw precious insights from Pakistan’s expertise. Suggestions embrace making the power transition inclusive, integrating distributed power into the system, together with legacy property, incorporating the mobility sector, and planning forward for scale.
