PAKISTAN faces a substantial challenge in meeting its growing energy demand. According to a report from the Institute of Strategic Studies Islamabad, the country’s energy deficit was around 7000 megawatts during May-August in 2023.This deficit caused frequent power outages, hindered economic activity and impacted the daily lives of millions of citizens. Traditional energy sources, such as fossil fuels, are costly and environmentally detrimental. Currently, Pakistan relies heavily on imported oil and gas, making it vulnerable to price fluctuations in the global market. In 2022-23 alone, Pakistan’s import bill for fossil fuels was more than $13 billion.
Coal-fired power plants, while offering a readily available source of energy, contribute heavily to air pollution and greenhouse gas emissions. Pakistan ranks among the top countries globally for air pollution, with Lahore consistently listed as one of the most polluted cities in the world. Solar energy offers a compelling alternative to these problematic energy sources. It is a clean, abundant and domestically produced. By embracing solar energy, Pakistan can not only ensure energy security and reduce dependence on imported fuels but also take a significant step towards environmental sustainability.
With an average of approximately eight and one-half hours of sunlight daily, Pakistan has significant potential for solar energy generation. It has already begun movement toward realizing that potential. This shift is fuelled by a growing awareness of the benefits of solar energy. Domestic users report significant savings on electricity bills, sometimes achieving “zero electricity bills” thanks to net metering programs. Under net metering, solar energy users currently share up to 3,000 megawatts with the national grid. Projections for next year indicate an increased share.
The positive experiences of domestic solar users in Pakistan serve as a powerful endorsement for increased adoption of solar energy. Reports estimate that the average payback period for a rooftop solar system in Pakistan is between 3-7 years. That is better than in many other countries. The Pakistani government has made commitments to grow solar energy use. The government has done this through initiatives such as the National Solar Energy Initiative, aiming to achieve 10,000 megawatts of solar energy generation by 2040. To promote solar power in agriculture, the Pakistani government offers subsidies that lower upfront costs for farmers and collaborates with banks to provide financing options with manageable payment plans. The United States offers valuable lessons for consideration by Pakistan in this regard. The US government has implemented a range of incentives, including tax credits and feed-in tariffs, which have spurred the growth of the domestic solar industry. These policies have not only reduced the upfront cost for homeowners but have also created jobs and stimulated economic activity.
At the end of 2023, the Office of Efficiency Energy and Renewable Energy (OEERE) estimates that there were nearly five million residential users in the United States of photovoltaic systems (PV systems) which convert sunlight into electricity. Around 3.3% of all US households, or 5.3% of households living in single-family detached structures, own or lease a PV system. The OEERE notes, “Despite the modest percentage of electricity from solar, it represents the largest source of new electricity generation in the US, on a scale seen a few times before.” Data from different sources reveal that over 280 GW of manufacturing capacity has been announced throughout the solar supply chain system, representing nearly 28,000 potential jobs and more than $14 billion in announced investments across 90 new or expanded facilities in the US.
It is important to note that the US experience is not without its challenges. Concerns exist regarding the environmental impact of solar panel manufacturing and disposal. However, advancements in technology are being developed to mitigate these issues. In summary, the increasing use of solar energy in Pakistan is a positive development with far-reaching implications. Harnessing the country’s abundant sunshine presents a unique opportunity to address energy security concerns, reduce reliance on billions of dollars of fossil fuels and create a cleaner climate and more sustainable future. By learning from international and US experiences, and fostering innovation, Pakistan can establish a position for itself as a leader in the clean energy transition. As a US citizen with strong ties to South Asia, I am eager to witness Pakistan’s continuing and accelerated journey towards a brighter solar-powered future.
—The writer is an Entrepreneur, Civic Leader, and Thought Leader based in Washington DC.
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