Energy is the backbone of any economy, and for decades, Pakistan has relied heavily on fossil fuels to meet its growing energy needs. Currently, fossil fuels still account for approximately 63% of Pakistan’s total power generation, according to the NEPRA State of Industry Report 2023. However, the global energy landscape is shifting, and Pakistan is following suit. The country is now making significant investments in renewable energy sources such as solar, wind, and hydropower, aiming to reduce its dependence on imported fossil fuels. This transition is not merely about aligning with global trends; it is a necessary step toward ensuring energy security, achieving economic stability, and protecting the environment. With rapid technological advancements, supportive government policies, and growing interest from both domestic and international investors, Pakistan is gradually moving toward a renewable energy revolution that offers the promise of a cleaner and more sustainable future.
One of the primary drivers behind this shift is the rising cost of fossil fuel imports. In 2022-2023 alone, Pakistan spent over $17 billion on energy imports, including oil, gas, and coal, according to the State Bank of Pakistan’s Annual Report. This dependence on imported energy has left the economy vulnerable to volatile international fuel prices, which has repeatedly triggered inflation and rising electricity costs for households and industries alike. In 2023, electricity prices in Pakistan surged by over 40%, with fuel price adjustments playing a key role in these increases. By developing indigenous renewable resources, the government aims to break this cycle of dependence and build a more resilient and self-sufficient energy system.
Solar energy has emerged as one of the fastest-growing contributors to Pakistan’s energy mix, thanks to the country’s favorable geography, which provides an average of 5 to 7 kilowatt-hours per square meter per day of solar radiation. This natural advantage has enabled Pakistan to install over 2,368 megawatts of solar capacity as of 2023. Projects such as the Quaid-e-Azam Solar Park in Bahawalpur, which generates 500 megawatts of power, exemplify the scale at which solar energy is being harnessed. Beyond utility-scale projects, rooftop solar installations have also proliferated, with over 50,000 net metering licenses issued by the end of 2023. Through net metering, households and businesses can sell surplus electricity back to the grid, reducing their electricity bills and helping stabilize the grid during peak hours.
Wind energy is another area of rapid development, particularly in Pakistan’s coastal regions, where wind speeds average between 7 to 8 meters per second. The Jhimpir Wind Corridor in Sindh has become a hub for wind power development, contributing to the country’s 1,985 megawatts of installed wind capacity as of 2023. Wind power offers a clean, emission-free alternative to thermal power generation, and the successful operation of wind farms in Sindh has attracted further investment from both domestic and international firms.
Hydropower, historically the backbone of Pakistan’s renewable energy sector, continues to play a critical role. Currently, hydropower contributes about 30% of the total electricity supply, with an installed capacity exceeding 9,000 megawatts. Major projects such as the Diamer-Bhasha Dam, expected to add 4,500 megawatts, and the Mohmand Dam, expected to contribute 800 megawatts, are set to further strengthen Pakistan’s hydropower capacity. Unlike solar and wind, hydropower provides a stable and continuous supply of electricity, which makes it essential for balancing the grid.
The economic benefits of renewable energy development extend far beyond electricity generation. According to the International Renewable Energy Agency (IRENA), Pakistan’s renewable energy sector employed approximately 63,000 people in 2023, with projections indicating that this number could double by 2030. These employment opportunities span the entire value chain, from manufacturing and installation to operations, maintenance, and research. Moreover, the renewable energy boom is encouraging innovation and entrepreneurship, particularly in solar technology, energy efficiency solutions, and battery storage systems, fostering a broader green economy.
Environmental benefits are equally significant. Pakistan ranks fifth among the countries most vulnerable to climate change, according to the Global Climate Risk Index 2023. Traditional fossil fuel power plants are a major source of greenhouse gas emissions, contributing to both climate change and severe air pollution. The World Health Organization estimates that air pollution causes approximately 135,000 premature deaths annually in Pakistan. By shifting toward cleaner energy sources, Pakistan can significantly reduce its carbon footprint, improve air quality, and mitigate the health impacts of pollution.
Supportive government policies have been instrumental in driving this transition. The Renewable Energy Policy 2019 set an ambitious target for renewable sources (excluding large hydropower) to account for 30% of Pakistan’s electricity generation by 2030. Incentives such as tax exemptions, low-interest financing, and long-term power purchase agreements have helped attract private sector investment into renewable projects. Additionally, the introduction of competitive bidding processes has driven down the cost of renewable electricity, with solar and wind tariffs falling to as low as 3.75 US cents per kilowatt-hour, making them cheaper than fossil fuel-based power generation.
Despite these advances, several challenges remain. Expanding renewable energy infrastructure requires substantial investment, particularly in upgrading and expanding the national transmission network to accommodate decentralized solar and wind power. Integrating intermittent renewable sources into the grid also requires the development of advanced energy storage solutions and smart grid technology, areas where Pakistan still lags. Currently, the country’s battery storage capacity remains negligible, limiting the flexibility and reliability of solar and wind power.
Public awareness is another crucial factor. Surveys indicate that only 38% of Pakistanis are aware of the potential savings and environmental benefits associated with solar energy adoption. More widespread education campaigns and community engagement programs will be essential to encourage greater uptake of renewable technologies, especially among urban consumers who face high electricity tariffs.
The transition to renewable energy is ultimately an investment in Pakistan’s future—an investment that strengthens energy independence, protects the environment, and creates sustainable economic opportunities. While the road to a fully renewable energy system will take years of dedicated effort, the groundwork is already being laid. With continued government support, technological innovation, and proactive participation from businesses and communities, Pakistan’s renewable energy revolution is well underway, offering the promise of a cleaner, healthier, and more prosperous future for all.
Author’s Bio:
Hamnah Maryam holds an MPhil in Defence and Strategic Studies and focuses her research on security dynamics, strategic affairs, and regional geopolitics. Her academic work explores contemporary defence policies, conflict resolution, and the evolving security landscape in South Asia. She actively contributes to research publications and policy discussions, offering critical insights into defence strategies and geopolitical trends.
