Pakistan overtakes G20 nations in solar imports from China, marking major energy shift

KARACHI: Pakistan has emerged as one of the world’s fastest-growing solar markets, importing more solar panels from China in 2024 than several G20 countries, according to a new report by clean energy think tank Renewables First. The country imported over 16 gigawatts (GW) of solar panels from China this year alone, with total imports over the past five years reaching 39GW — more than three-quarters of Pakistan’s total installed power generation capacity.

The report, titled “Leader of One or Leader of None – China’s Choice for Clean over Coal in Pakistan”, highlights Pakistan’s central role in a global energy shift, driven not by top-down policy but by rooftops, farms, and industrial sheds — a phenomenon the authors call a “Solar Rush.”

While China continues to finance coal-fired power plants in Pakistan, the rapid adoption of low-cost solar technology is reshaping the country’s energy landscape. Several coal plants are now operating at minimal capacity, with some reporting utilization rates as low as 4% in 2024. As solar generation grows and self-generation becomes more viable, these plants have become costly, underutilized assets, increasing capacity payment burdens.

Lead author Muhammad Basit Ghauri points out a striking contradiction: “China’s solar panels are outcompeting China’s power plants.” The study calls this a strategic paradox, positioning Pakistan as the first large-scale example of clean energy disruption in the Global South.

Despite this success, the report emphasizes that relying solely on imports is insufficient. A sustainable solar transition in Pakistan will require:

In conclusion, Pakistan currently leads the solar surge in the Global South. If China addresses these challenges, it could consolidate its leadership in global clean energy while helping transform energy systems in emerging economies into ones that are rapid, equitable, and sustainable.

For more insights on Pakistan’s renewable energy landscape, visit Renewables First Insights.