Pakistan, with its abundant sunshine and growing energy demands, has been making significant strides in the adoption of solar energy. The country’s potential for solar power generation is immense, and its government has been actively promoting the installation of solar panels across the nation.
According to the International Energy Agency (IEA), Pakistan’s solar capacity has increased significantly in recent years. As of 2023, Pakistan’s solar power capacity has reached 5,000 megawatts, indicating a substantial growth in the country’s solar energy infrastructure. This impressive figure underscores the government’s commitment to harnessing the power of the sun to meet the nation’s energy needs.
Further solidifying Pakistan’s position in the solar energy landscape, the International Renewable Energy Agency (IRENA) reported that the country’s total solar installed capacity reached 1,244 megawatts as of 2023. This represents a remarkable 17% increase compared to 2021, demonstrating the rapid pace of solar energy adoption.
The government has been actively pursuing policies and initiatives to further elevate the percentage of solar energy in Pakistan’s energy mix. These efforts have yielded tangible results, as evidenced by the completion of Pakistan’s first n-type utility-scale photovoltaic power plant project in December 2023. This groundbreaking project, a collaboration between Orient Energy Systems and JA Solar, features high-efficiency modules with a capacity of 26 megawatts. The plant is strategically located on the premises of Lucky Cement, Pakistan’s largest cement manufacturer, showcasing the potential for solar energy to power various industries.
While the progress made in solar energy adoption is commendable, Pakistan still has a significant gap to bridge. As of June 2023, the installed capacity of solar power in Pakistan stood at 630 megawatts, accounting for only 1.4% of the overall installed power capacity. This indicates that there is ample room for growth in the country’s solar energy sector.
The future of solar energy in Pakistan looks promising. The market is projected to experience a compound annual growth rate (CAGR) of 49.68%, expanding from 1.30 gigatonnes in 2023 to 9.77 gigatonnes by 2028. This substantial increase suggests that solar energy is poised to play a pivotal role in meeting Pakistan’s energy needs and reducing its reliance on fossil fuels. The Pakistani government has introduced several policies and incentives to promote the adoption of solar energy. One such initiative is net metering, which allows consumers to reduce their electricity bills by feeding excess solar-generated power back into the national grid. In addition to this, the government has implemented a feed-in-tariff system that offers a guaranteed price to solar power producers, ensuring a stable income stream for them. To further incentivize solar installations, various tax exemptions and reductions have been introduced, making solar projects more affordable for businesses and individuals. Large-scale solar power projects, or solar parks, are also being developed to contribute to the national grid, further supporting the country’s shift towards renewable energy sources.
Challenges and Issues
Despite efforts to promote solar energy in Pakistan, several challenges have hindered its widespread adoption. One major issue is the high initial cost of solar panel installation, which remains a significant barrier for many households and businesses. In addition, access to financing is limited, making it difficult for smaller-scale installations to secure the necessary loans or funding. The regulatory framework surrounding solar energy is also complex and time-consuming, which discourages potential investors. Moreover, integrating solar power into the existing electricity grid presents challenges, as it requires infrastructure upgrades and effective management. A lack of awareness among the public about the benefits and potential of solar energy further complicates efforts to promote its adoption.
Despite these challenges, Pakistan has seen notable developments in the solar energy sector. For example, the government has mandated the solarization of all government buildings, which has resulted in significant energy savings and set a positive example for the private sector. Additionally, Pakistan has partnered with international organizations to promote solar energy adoption and access to technology, facilitating knowledge sharing, investment, and capacity building. Community-based solar projects have also been launched, empowering local communities to generate their own clean energy.
To fully realize Pakistan’s solar energy potential, several key areas need to be addressed. Reducing costs through government subsidies and financial incentives can help make solar installations more affordable. Improving access to financing by encouraging financial institutions to offer tailored loan products for solar projects is also crucial. Simplifying the regulatory framework would reduce barriers to entry for solar investors, while investments in grid infrastructure and smart grid technologies are essential for seamless integration of solar power. Finally, public awareness campaigns should be promoted to educate people about the benefits of solar energy.
Pakistan’s journey towards a solar-powered future is gaining momentum, with significant progress made in recent years. The government’s initiatives, coupled with the growing awareness and adoption of solar energy, have laid a strong foundation for the country’s renewable energy aspirations. By overcoming the challenges and capitalizing on the opportunities, Pakistan can harness the power of the sun to achieve a cleaner, greener, and more prosperous future.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance
