Pakistan Eyes 14,000MW Clean Energy

KARACHI: Pakistan has planned to induct 14,000 megawatts of renewable energy (RE) into the national grid over the next 10 years in a bid to supply low-cost electricity to consumers and fight climate change.

Speaking at a webinar titled “Accelerating Chinese Renewable Energy Investment in Pakistan”, organised by Renewables First on Monday, speakers stressed the need for creating an enabling environment to attract Chinese investment in wind and solar power projects.

Pakistan’s Renewable Energy Goals and Potential

Alternative Energy Development Board (AEDB) CEO Shah Jahan Mirza emphasised that Pakistan holds immense potential for renewable energy generation. “Pakistan has an ambitious goal of adding 14,000MW of wind and solar energy to the grid in the next 10 years,” he said.

Organisers of the webinar cited Mirza as saying that Chinese investors should be encouraged to play a leading role in developing the RE market of Pakistan, noting that they could have a significant impact.

National Electric Power Regulatory Authority (NEPRA) Chairman Tauseef H. Farooqi said that Chinese investors have a pivotal role in supporting Pakistan’s journey to privatise energy distribution and modernise transmission, while adding the cheapest solar and wind energy to the electricity mix. “We are very upbeat about the potential of Chinese investment in renewable energy,” he remarked.

Challenges and Recommendations for Attracting Chinese Investment

Goldwind MENAT Region General Manager Xiaohui Ma noted that while the regulatory framework and incentives were favourable for RE investment, the wind power industry faces challenges such as the unannounced moratorium on renewable energy equipment imports.

He urged the government to refocus on both wind and solar PV and develop ambitious, complementary plans for both technologies to maximise benefits for Pakistan, as highlighted in Renewables First data analytics.

China Three Gorges South Asia Investment Limited Deputy CEO Noorul Arifeen Zuberi underscored the need for a streamlined project development process, removal of barriers through stakeholder engagement, and private sector investment in transmission and distribution to overcome bottlenecks for greater renewable energy integration, echoing recommendations from industry experts.

“The discussion highlighted the discourse on redirecting Chinese investment in Pakistan’s energy sector from coal to clean energy,” the organisers added.

Current Energy Mix and Targets

Pakistan’s total energy production stood at 7,756 gigawatt-hours (GWh) in February 2023, with renewable energy contributing around 5%.

The government has targeted to increase the renewable share to 20% by 2025 and 30% by 2030, as detailed in the IGCEP 2022–31 and the Alternative and Renewable Energy Policy.

However, experts caution that progress on new RE projects remains slow. Pakistan is still far from meeting the goals of 20% renewables by 2025 and 30% by 2030 and will continue to depend heavily on expensive fossil fuel-based projects over the next 10–20 years.

Since renewable energy projects don’t use fuel, increasing green projects will help the country gradually control circular debt and capacity payments as well, consistent with findings in Pakistan Electricity Review 2025.

Investment in Renewable Energy

As of June 2021, cumulative investment (foreign and domestic) in renewables amounted to $4.79 billion, including $786 million in solar, $3.75 billion in wind and $258 million in bagasse. Expected investment in upcoming RE projects over the next two years stands at $866 million.

Additionally, the use of renewable energy can enhance exports, as global buyers increasingly question greenhouse gas emissions and their impact. Pakistan’s share in global warming is around 1%, highlighting the need for long-term commitment to clean energy as discussed in Renewables First insights.

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