Pakistan is All Set to Install 14000 Megawatts of Solar Energy

Due to climate change and a lack of resources, the country has already encountered a power shortage for over a decade. However, in the past few years, Pakistan is endeavoring to invest in renewable energy, and tax exemption to solar and wind power generation equipment was one of them.

Total energy production in Pakistan reached 7,756 gigawatt-hours (GWh) in February 2023. The share of RE was only 5%. However, the Pakistani government is optimistic about renewable energy production with an aim to skyrocket clean energy production to 20% by 2025 and 30% by 2030.

Renewables First conducted a webinar on April 17, 2023, on “Accelerating Chinese Renewable Energy Investment in Pakistan.” This webinar highlighted the need for clean energy and underlined the reliance on Chinese investment in wind and solar power projects in Pakistan.

The CEO of the Alternative Energy Development Board (AEDB), Shah Jahan Mirza, stated, "Pakistan has an ambitious goal of adding 14,000MW of wind and solar energy to the grid in the next ten years,” He also emphasized that Pakistan is capable of producing renewable energy. Moreover, it was also addressed that Chinese investments can encourage the development of the RE market in Pakistan.

China has been the key player and representative of renewable energy globally. Recently, China and Pakistan teamed up to accelerate solar power projects in Pakistan. With Chinese investment and experience in clean energy power generation, Pakistan can produce, privatize, and modernize energy production that would help the country's economic state.

In the webinar, National Electric Power Regulatory Authority (Nepra) Chairman Tauseef H Farooqi stated that Pakistan could add the cheapest solar and wind energy to the electrical mix to overcome power shortage in the country. He also said, “We are very upbeat about the potential of Chinese investment in renewable energy.”

Representing the Chinese perspective, Goldwind Menat Region General Manager Xiaohui Ma added remarks and highlighted the challenges Pakistan's wind power industry faces. The unannounced adjournment of energy equipment import is one of them.

He emphasized that the Pakistani government should refocus on clean energy production and develop effective wind and solar power generation frameworks.

Furthermore, the webinar also discussed the strategies to attract more foreign investments for renewable energy production projects in Pakistan.

The Deputy CEO of China Three Gorges South Asia Investment Limited, Noorul Arifeen Zuberi, emphasized that Pakistan should have a streamlined project development process to facilitate uninterrupted stakeholder engagement.

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

Nonetheless, many experts believe that reaching the target of 20% renewable energy production by 2025 and 30% by 2030 would be very challenging for Pakistan as the RE power production rate needs to be faster in the country.

Over the next two years, $866 million is anticipated to be invested in the planned renewable energy projects (solar, wind, and bagasse). The total investment in renewable energy (domestic and foreign) as of June 2021 was $4.79 billion. Solar energy received $786 million, wind energy received $3,752 million, and bagasse received $258 million from this investment.

Foreign investment seems to be the only solution to accelerate the cheap production and supply of electrical power across Pakistan. This will not only help Pakistan in becoming a stable economy but will also open gates for exports.