Pakistan has shifted its focus in its Indicative Generation Capacity Expansion Plan 2021-2030, from targeting 30 percent renewable energy capacity through wind and solar sources to reaching 60 percent ‘renewable’ energy generation by that date after the reclassification of hydropower as a renewable source. It is now focusing more on generating electricity through hydropower instead of wind and solar power.
Under the new plan, wind and solar capacity targets have been reduced by 17,000 MW than in the previous version of its Indicative Generation Capacity Expansion Plan (IGCEP).
The recently released State of the Industry Report 2021 by the National Electric Power Regulatory Authority (NEPRA) disclosed that Pakistan had not commissioned wind and solar power in the last twelve months.
Meanwhile, the prices of LNG and coal continue to surge worldwide, and Pakistan’s dependence on LNG imports has become a concern. Its focus on hydropower is also an issue because of the cost and implementation risks.
Pakistan’s target to reach 60 percent renewable energy generation by 2030 relies on the Diamer-Bhasha dam with an estimated cost of $14 billion that is expected to increase due to huge cost overruns.
Wind and solar-based energy projects are better for Pakistan as they can be constructed faster than both hydro and coal-fired power projects. They also have better energy security outcomes than dependence on large dam projects that may or may never be completed on time.
The International Energy Agency published its key World Energy Outlook 2021 report in October that highlights the importance of solar and wind energy, and, ultimately, it is crucial for Pakistan to also shift its focus towards wind and solar installation and grid improvements that can reduce its reliance on fossil fuels in an efficient manner.
