Report analyses impact of solar imports on Pakistan’s power sector
ISLAMABAD: Renewables First, a think tank focused on energy and the environment, has released a new report titled “Leader of One or Leader of None – China’s Choice for Clean over Coal in Pakistan”. The study examines China’s growing paradox in the Global South: simultaneously acting as a clean energy powerhouse and a financier of fossil fuels, with Pakistan as a pivotal case study.
Global Climate Context
Following America’s withdrawal from the Paris Agreement, global climate leadership has faced uncertainty. China, the world’s largest carbon emitter, has emerged as a dominant force in clean energy manufacturing, supplying renewable technologies essential to combating climate change. Yet, it continues to finance coal projects, creating a strategic paradox. For more on China’s environmental efforts see our previous coverage.
Pakistan’s Solar Rush
The report highlights Pakistan’s “solar rush,” a people-led energy transition unfolding on rooftops, farms, and industrial sheds. In just five years, over 39 GW of solar panels—almost all from China—have been installed, exceeding three-quarters of Pakistan’s total installed generation capacity. Between 2020 and early 2025, China exported more solar panels to Pakistan than many G20 nations, with over 16 GW imported in 2024 alone. Read more on Pakistan’s solar revolution.
Impact on Coal Power Plants
As solar adoption has surged, Chinese-backed coal plants in Pakistan are becoming underutilized, with some operating at only 4% capacity by 2024. Capacity payments have risen, and grid electricity costs for remaining consumers have increased. For insights on fossil fuel decline and solar growth, see our coverage.
“China’s solar panels are outcompeting China’s power plants. What we are seeing is an unintentional but profound strategic contradiction. Pakistan is ground zero for this global experiment in energy disruption.” — Muhammad Basit Ghauri, Lead Author
Future Challenges and Solutions
The report raises a critical question: Will China fully embrace its role as a global clean energy leader, or will it default to the status quo, risking its investments and leadership ambitions? Long-term success requires not only continued solar deployment but also investment in storage solutions, grid modernization, local manufacturing, financial instruments, and a clear strategy for retiring stranded coal assets. Learn more about renewable energy storage solutions.
Global Significance
Pakistan may be the first country to experience this large-scale clash between legacy coal and decentralized solar, but it will not be the last. If China navigates these challenges effectively, it could lead Pakistan’s energy transition and shape a new, equitable, and transformative energy paradigm for the Global South.
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Article / Report originally published at: Gwadar Pro