PAKISTANI CONSUMERS DRIVING GRADUAL SHIFT IN POWER SECTOR: PER 2025
ISLAMABAD, May 09: Fresh insights from the Pakistan Electricity Review (PER) 2025 highlight early signs of transformation in Pakistan’s power sector. Launched by Renewables First, the report notes that while structural challenges persist, an unexpected driver is emerging — the Pakistani consumer.
Consumer-Led Solar Surge
During fiscal year 2024 (FY24), Pakistan saw rapid rooftop solar adoption. Fueled by a record 16 GW of solar PV imports from China, households and industries installed thousands of systems to achieve cost relief and reliable power. As of March 2025, 4.9 GW of net-metered solar capacity had been installed, excluding behind-the-meter setups. This grassroots energy revolution reflects people taking energy into their own hands: Net-metered solar adoption.
“This wasn’t just another year, it was a shift,” said Rabia Babar, Manager Data Energy and Climate at Renewables First. “Consumers are telling us something, loud and clear: they’re building their own.”
Grid Pressure and Capacity Payments
The surge in solar is stressing the national grid. Transmission bottlenecks remain a major concern, especially from southern generation zones to northern demand centres: Power market challenges.
Capacity payments continue to rise — jumping 29% in FY23 and 46% in FY24 — reaching PKR 1.9 trillion, driven by underutilised generation capacity.
Panel Insights
Dr. Dinita from Ember Asia emphasized the need to complement bottom-up solar adoption with top-down planning for sustainability. She noted Pakistan’s pace and scale of solar growth outpaces regional peers like Thailand and Vietnam: Solar growth insights.
Ernst Kuneman of Agora Energiewende added that strategically deployed Distributed Energy Resources (DERs) can defer costly grid investments, reduce peak demand, and ease congestion: Data-driven solutions.
Looking Forward
While the electricity sector remains under pressure, it is not static. Households are acting, industries are shifting, and the cracks in the old model are becoming visible. FY24 may not have fixed the system, but it highlighted that change is already underway.
The Pakistan Electricity Review 2025 serves as both a mirror and a map — reflecting the sector’s current state and guiding where it urgently needs to go: Read more Renewables First publications.