ISLAMABAD, Dec. 6 (INP): Pakistan is now the sixth-largest solar market in the world and its “rapid adoption” of solar energy provides valuable lessons for emerging markets, according to a World Economic Forum (WEF) report. Solar energy is imperative as Islamabad tries to dodge rising fuel prices through renewable energy resources.  The WEF indicated the inability of state-owned energy providers to provide a stable supply and the government’s inconsistent energy policy characterized by “inefficiencies in production, pricing and regulations” has aggravated local energy crisis, aiding in the usage of solar energy.

The International Energy Agency (IEA) reports that while Pakistan’s per capita electricity consumption grew by 87% between 2000 and 2022, over 40 million people remain without access to electricity, and half the population still lacks clean cooking facilities.  Many more live in off-grid or underserved areas, with under four hours of electricity daily.  Meanwhile, record-breaking heatwaves are boosting demand for basic cooling like fans. 

Due to the exorbitant costs and unreliable performance of the power grid, 40-50% of industries rely on captive power plants despite being connected to the grid.  The momentum towards solar adoption is further fueled by growing consumer independence, driven by declining battery prices and the desire for reliable energy availability. The Sindh government lately announced to provide solar systems to 200,000 households across the province, including 50,000 homes in Karachi. 

“It is undoubtedly good news for Pakistan’s photovoltaic industry, specifically, for Chinese PV companies that have been involved in the local market,” Ali Majid, Pakistan General Manager of leading solar solutions provider LONGi told in an interview with Gwadar Pro. According to NEPRA, Pakistan’s installed photovoltaic capacity is expected to reach 12.8GW by 2030 and 26.9GW by 2047.  At present, Chinese companies such as Zonergy, LONGi, SOFAR and Ningbo Deye have already laid out the photovoltaic storage market in Pakistan for many years and occupy an important position.

In view of natural conditions, experts say Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country.  According to the World Bank, utilizing just 0.071% of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand. In view of market, mass-produced solar panels from China has lowered costs, making Pakistan the third-largest destination for Chinese exports.  Industrial, agricultural and residential sectors have embraced solar, with imported Chinese modules totaling 13 gigawatts in the first half of the year, and forecasts reaching 22GW by year-end.

Solar energy has moved from a niche market for providing power in remote places (at the very beginning in 1958 to space satellites) to a mainstream technology which feeds into the national grid. According to the National Electric Power Regulatory Authority (NEPRA), currently, only 5.4% of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63% of the fuel mix, followed by hydropower at 25%. “Nestled in a region blessed with ample sunlight, Pakistan boasts approximately 2.9 million MW of solar power potential,” Ali said.  “And while the initial cost of solar technology has been a deterrent, the decreasing global cost is making it more economically viable for countries with pressing electricity needs, including Pakistan, Gwadar Pro reported.

Credit: Independent News Pakistan (INP) — Pak-China