Muneeb ur Rehman

The absence of an effective policy to address the issue of renewable energy supply to industries has left Pakistan far behind in terms of the share of renewable energy in the total energy mix. Therefore, formulating and effectively implementing a green industrial policy can play a pivotal role in ensuring a sustainable and reliable supply of renewable energy to the industrial sector. Talking to WealthPK, NA Zuberi, Senior Advisor to China Three Gorges South Asia Investment Limited, said that like many other developed countries, Pakistan could also formulate a comprehensive green industrial policy framework. “The step will ensure that the country fulfils its global commitment to reducing carbon dioxide emissions besides ensuring an uninterrupted supply of renewable energy to its industrial sector.”

According to the Pakistan Economic Survey, the household sector accounts for a substantial 46.6% of the total electricity consumption in the country. This is followed by the industrial sector, representing 28.2% of the total consumption. The agricultural and commercial sectors contribute 8.2% (6,906 GWh) and 7.8% (6,576 GWh) to the overall electricity consumption, respectively. Furthermore, other sectors, encompassing streetlights, general services, and governmental facilities, collectively consume 9.1% of the total electricity, amounting to 7,664 GWh.

Zuberi said that the policy would encourage research and development in renewable energy technologies, promoting innovation and cost-efficiency in the sector. He said that the green industrial policy could offer incentives such as tax breaks, subsidies and low-interest loans to the public and private sectors engaged in the production of renewable energy. The policy, he said, would help reduce reliance on imported fossil fuels for energy production, which is the leading factor depleting the valuable foreign exchange reserves in the country.

Zuberi underscored the presence of weak governance, uncoordinated energy policymaking and a shortage of comprehensive, long-term energy strategies as the key issues, marring Pakistan’s progress in the development of renewables. “The green industrial policy needs to factor in all these existing problems related to the energy sector.” If such a policy is framed and implemented in letter and spirit, it will help Pakistan meet its target of achieving a 60% share of renewable energy in the total energy mix by 2030.

Credit: INP-WealthPk