By Dr. Hina Aslam
Pakistan’s economy is rebounding after the shocks of the global pandemic, with the real GDP growth at 5.6% and its demand for energy growing by 6.29% in FY2021.
It is imperative that the country caters to its energy demand for meeting its socio-economic development objectives by opting for sustainable alternative energy generation sources that are economic, environmental-friendly, and indigenously available.
The current energy mix of the country is profoundly dependent on oil and gas, whereby the share of renewable technologies (i.e., solar, wind, bagasse, and geothermal) in the overall primary energy supply is through the electricity sector mainly – which accounts for only 11% of total primary energy supply.
Amidst the global increase in oil price and geo-political crisis like the Ukraine-Russia conflict, the need for integrating renewables for improved energy security, affordability, and sovereignty have become central to the discussion for energy planners.
The current policy framework of the energy sector of Pakistan envisions an increase in the current capacity share of Variable Renewable solar from 4% to 30% by 2030, based on the Alternative Renewable Energy (ARE) Policy.
However, Indicative Generation Capacity Expansion Plan (IGCEP) 2021 forecasts only a 21% capacity share of solar and wind by 2030. Other policy targets include Nationally Determined Contributions (NDCs) which envision a 60% capacity share of renewables and hydro by 2030.
While a just and clean transition to renewable energy remains at the core of climate change and enables sustainable economic growth, to achieve this, there needs to be benchmarking of the status of renewable energy and continuous tracking of interventions focused on forming a conducive environment for the clean energy transition in Pakistan.
To reflect upon on ifs and hows of achieving this transition, The Network on Clean Energy Transition (NCET) Pakistan of Sustainable Development Policy Institute (SDPI) – in collaboration with the supporting members Unilever Pakistan, Stimulus, German Cooperation, and a leading technology publication – is organizing the first-ever flagship conference on the “Annual State of Renewable Energy Conference (#ASREC)”, based on a recently produced report on the status of renewable energy in Pakistan.
The report identifies the crucial role of key institutions with relevant stakeholders with better coordination and well-aligned policies to enable the accelerated growth of renewables in Pakistan.
These political economy factors are coupled with unstable grids and distribution systems leading to a slower integration of renewables in the system.
Moreover, investments in the financing of renewables need to be accelerated by offering green financing tools, mechanisms, and incentives to localize the technologies-based solutions to provide a cost-effective pathway for adoption.
The prior need to encourage rooftop solar in commercial and residential buildings, along with the need to decarbonize the industrial sector of Pakistan through renewables, and energy efficiency measures can lead to sustained economic growth in the country.
The report also outlines the short-, medium-, and long-term policies and technologies-based interventions for immediate acceleration in renewable energy development and long-term energy transition goals of Pakistan. These measures will be further deliberated upon at the first ASREC Pakistan, in Karachi on September 1 & 2, 2022.
The writer is a Research Fellow at Sustainable Development Policy Institute, Islamabad.