The Competition Commission of Pakistan (CCP) has released a study on the solar energy market, titled “Unlocking Green Potential: A Market Competition Study of Solar Energy in Pakistan.”
The report identifies eight best ways to strengthen the local solar energy market.
The study highlights structural challenges, recommending upgrades to grid infrastructure, clearer policies, and stricter quality standards to drive sustainable growth and fair competition.
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Key recommendations include:
- Modernizing distribution networks: The CCP warns that outdated feeders and substations cannot handle two-way power flows from distributed solar, causing voltage fluctuations and hindering net-metering expansion.
- Smart metering and grid automation: The rollout of advanced systems such as SCADA and Distribution Management Systems (DMS) is urged to improve real-time monitoring, reduce losses, and integrate renewable energy efficiently.
- Fast-tracking power market reforms: The CCP calls for rapid implementation of the Competitive Trading Bilateral Contract Market (CTBCM) and suggests pilot bilateral contracts for industrial clusters and Special Economic Zones to lower electricity costs and stimulate competition.
- Quality assurance and consumer protection: The study proposes accredited solar testing labs, mandatory compliance with international standards, and digital verification systems to eliminate substandard and counterfeit equipment.
- Extending solar to rural areas: Measures such as off-grid solutions, targeted subsidies, and concessional financing are recommended to reduce urban-rural disparities in net-metering benefits.
- Battery storage incentives: To relieve grid pressure and improve reliability, CCP recommends incentives for solar-plus-storage systems and domestic battery manufacturing, leveraging advances in EV battery technology.
- Domestic manufacturing push: The study urges a Production-Linked Incentive (PLI) scheme and dedicated renewable energy zones to boost local solar panel production, supported by tax incentives, financing, and international partnerships.
- National Solar Registry: Establishing a registry is recommended to fill persistent data gaps, improve policy planning, and enhance transparency across the solar sector.
The CCP has uploaded the draft report for stakeholder consultation, marking a potential turning point for Pakistan’s solar energy market.