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Renewable energy

Pakistan's Energy Crisis: A Stark Contrast to Regional Peers

Strategic Insights

— 1 min read

Pakistan's energy landscape is starkly at odds with its regional peers, with just 12.2% of its electricity sourced from renewable energy. The country's reliance on imported fossil fuels has led to a ballooning circular debt and a fragile electricity grid, sparking frequent blackouts and high power tariffs. Experts stress that Pakistan's economic progress is closely tied to massive investments in renewable energy and the construction of new dams to secure its energy future.

Key Takeaways:

  • Pakistan's total installed power generation capacity stands at 46,605 MW, with a disproportionate dependence on thermal sources (55.7%), followed by hydropower (24.4%), nuclear (7.8%), and renewables (12.2%).
  • The country's reliance on Independent Power Producers (IPPs) is a model widely criticized for its high generation costs and take-or-pay contracts.
  • Pakistan's energy mix needs urgent diversification, with a focus on renewable energy sources such as solar, wind, and hydel potential.
  • Projects like the 1320 MW Sahiwal Coal-Fired Power Plant have played a vital role in ensuring reliable, large-scale power generation, but the country must prioritize a transition to cleaner, sustainable sources to secure its energy future.
  • Efforts to promote solar energy have been hindered by the reduction in the buyback rate for surplus solar power from Rs 27 to Rs 10 per unit.
  • Technical challenges and policy inconsistencies risk derailing the country's renewable momentum at a time when global climate pressures and economic needs demand urgency.

Statistics:

  • 12.2% of Pakistan's electricity is currently sourced from renewable energy.
  • 46,605 MW is the country's total installed power generation capacity.
  • 55.7% of Pakistan's power generation comes from thermal sources.
  • 24.4% of Pakistan's power generation comes from hydropower.
  • 7.8% of Pakistan's power generation comes from nuclear sources.
  • Rs 27 was the buyback rate for surplus solar power before it was reduced to Rs 10 per unit.

Sources:

  • Economic Survey of Pakistan (2024-25)
  • Professor Dr Zilakat Malik, former Chairman Economics Department at the University of Peshawar

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