Pakistan Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in pakistan, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Renewable Energy
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Overview

AnchorThe energy sector in Pakistan poses a challenge to its economic development. The sector has made progress since 2013 in terms of power generation and reducing power outages, but it is still facing challenges due to the high cost of fuel sources, dependence on imported energy products, insufficient natural gas supplies, mounting debt, and outdated transmission and distribution systems.

According to National Electric Power Regulatory Authority’s (NEPRA) 2022 yearly report, Pakistan’s total installed power generation capacity is 43,775 MW, of which 59% of energy comes from thermal (fossil fuels), 25% from hydro, 7% from renewable (wind, solar and biomass), and 9% from nuclear.

Pakistan is taking steps towards meeting its energy demands and reducing greenhouse gas emissions. The Government of Pakistan (GoP) is actively pursuing renewable energy investments on a large scale, as part of its clean energy goals. Pakistan has set a target to reduce its greenhouse gas emissions by 50% by 2030, and clean energy expansion will play a crucial role in achieving this objective.

Wind Energy

AnchorPakistan has considerable potential for using wind energy in the coastal belt of Sindh and Baluchistan (in southern Pakistan). The GoP has developed a wind power energy corridor along the southern coastal regions of Sindh and Baluchistan. Wind data, provided by Pakistan’s Meteorological Department, measures Pakistan’s coastal belt at 60km (Gharo-Keti Bandar) and 180km long, with an exploitable potential of 50,000MW of electricity generation through wind turbines. Currently, 36 private wind projects are operating, producing approximately 1845MW. The Government of Pakistan  renewable energy (RE) policy envisages generating 60 percent of the country’s energy from renewable resources by 2030. The ambitious target provides several opportunities for the wind energy market in Pakistan.  

Small/Mini/Micro Hydroelectric

AnchorIn addition to large hydro, there are prospects for the development of small-mini-micro hydropower with a revised RE policy.  The GoP considers small hydropower projects as a clean and inexpensive source of energy. Small hydropower projects are mainly located in remote areas of Pakistan particularly the North of the country. Recently, the GoP has identified new generation requirements by capacity, fuel technology, and utilizing indigenous resources for power generation by announcing the Indicative Generation Capacity Expansion Plan (IGCEP). This plan aims to add  13,000 MW of hydropower capacity to the current 9000 MW capacity by 2030(.

Solar

Pakistan has an average of nine and a half hours of sunlight daily. Solar power entered Pakistan’s energy mix in 2013 after the government introduced a set of support policies to foster renewable energy development.  According to the Private Power & Infrastructure Board (PPIB) of the Ministry of Energy, seven solar projects of 530 MW are operational and supplying electricity to the national grid.

With the rising costs of electricity in Pakistan and an unreliable grid supply, more industries and commercial organizations are turning to captive solar solutions. There has been a strong surge in domestic installation of rooftop photovoltaic panels in larger cities. For projects under 1 MW, net metering regulations came into effect in September 2015. The current state of the energy sector is promising for growth in solar power in the future. given rising fossil fuel prices.

Opportunities

  • The most promising opportunities within this sector are:
  • Solar Panels / Photovoltaic Panels
  • Dry Batteries
  • Inverters
  • Wind Farm Equipment (especially turbines)
  • Biomass Boilers
  • Transmission Equipment
  • Distribution Equipment
  • Biogas Equipment
  • Technical Consultancy

Resources

www.nepra.org.pk

www.ppib.gov.pk

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