Pakistan’s national power grid is under immediate and severe pressure from a burgeoning solar revolution and the emergence of electric vehicles, with experts warning that continued government inaction could force consumers to abandon the grid entirely. The country’s existing power infrastructure, designed for one-way electricity flow, is ill-equipped to handle the bidirectional energy streams from widespread solar installations, creating a critical vulnerability in the system.
This stark assessment was delivered at a high-level forum titled ‘Pakistan’s Energy Transition: Current Standing, Challenges and the Road Ahead,’ held at the Institute of Policy Studies (IPS) on Monday. Specialists from government, finance, and academia agreed that without coordinated planning, grid investment, and market alignment, the nation’s shift to renewables will falter.
Sardar Mohazzam, former managing director of the National Energy Efficiency and Conservation Authority (NEECA), identified the growing burden of capacity payments as a primary structural barrier obstructing meaningful progress. He stressed that long-term sustainability requires strategic planning for future technologies like hydrogen fuels and new energy vehicles.
The scale of the solar boom was detailed by Hasnat Khan, vice-chairman of the Pakistan Solar Association (PSA). He revealed that of the 46 GW of solar equipment imported, 35 GW has already been installed, predominantly behind-the-meter, with only 7-9% operating under net metering. Khan criticized the government for missing a crucial opportunity to deploy utility-scale solar earlier and warned it is repeating the mistake by failing to adopt battery storage solutions.
From a distribution company (DISCO) perspective, Arqam Ilyas of LESCO underscored the imminent threat. He cautioned that if official action remains slow, consumers may increasingly invest in batteries and become entirely self-sufficient. Echoing this, Dr. Nadia Shahzad of NUST emphasized that DISCOs should proactively leverage the growing battery market and highlighted the need for domestic manufacturing to reduce import dependence.
The financial and regulatory frameworks are also failing to keep pace. Muhammad Yousif, an assistant professor, argued that the National Electric Power Regulatory Authority’s (NEPRA) outdated tariff structure has artificially inflated electricity prices for consumers, a sentiment shared by other participants.
Mekaeel Malik, CEO of Climate Finance Pakistan, pointed to an imbalance in funding, noting that while 69% of climate finance comes from international public sources, over 70% supports mitigation efforts like renewables, leaving critical adaptation measures severely underfunded.
The socio-economic drivers of this transition were also highlighted. Tanvir Ahmed, an energy officer with the UNHCR, observed that energy transition narratives often ignore the plight of low-income households. For them, high tariffs and poor service quality make solar adoption a matter of necessity rather than an environmental choice.
Underpinning many of these issues is a fundamental failure in planning. Dr. Faisal Nadeem of UET Taxila stated that Pakistan’s energy forecasting has been flawed for years, making it impossible to accurately determine renewable capacity needs or identify optimal locations for deployment.
In his concluding remarks, IPS Chairman Khalid Rahman acknowledged the gravity of the challenges discussed. He asserted, however, that focusing on the inherent opportunities could steer Pakistan toward a more sustainable, equitable, and resilient energy future.