CONTENTS:

• Growing Energy Demand vs. Insufficient Supply
• Historical Challenges and Rising Demand
• The Role of Renewables in Energy Security
• Rising Electricity Costs and Public Impact

 

 

Energy Crisis 7% Won’t Cut It: Pakistan Needs Renewables Revolution to End

 

Growing Energy Demand vs. Insufficient Supply

Pakistan is facing a severe energy crisis due to a widening gap between rising energy demand and an inadequate conventional energy supply. This imbalance has resulted in increasing electricity costs and a higher dependence on energy imports. According to Geo News, in October 2023, the country experienced an energy shortfall of 6,000 MW, leading to an import bill of USD 7 billion.

Data from the National Electric Power Regulatory Authority’s (NEPRA) 2022 annual report indicates that Pakistan’s total installed generation capacity stands at 43,775 MW. However, only 7% of this comes from renewable sources. To resolve this crisis, strategic investments in renewable energy infrastructure and comprehensive policy reforms are essential for ensuring long-term energy sustainability.

 

Historical Challenges and Rising Demand

Pakistan’s energy crisis has deep historical roots. In the 1970s, the country successfully avoided a major energy shortfall through the development of the Mangla and Tarbela dams, which initially met the growing energy demand through hydropower.

During the 1980s, Pakistan’s rapid economic expansion further escalated energy demand. Despite government efforts to increase production, supply growth remained insufficient. The country’s heavy reliance on fossil fuels, which make up 59% of the energy mix, continues to worsen the crisis. Additionally, aging transmission infrastructure, power theft, and inefficient energy use contribute to energy shortages.

A report by the World Bank forecasts that Pakistan’s energy demand will surge by 70% by 2030, while the supply is expected to grow by only 45%. This widening gap underscores the need for a comprehensive strategy to address the crisis.

 

The Role of Renewables in Energy Security

Geo News emphasizes that increasing the share of renewable energy—such as solar, wind, and hydropower—is crucial for Pakistan to reduce its dependence on expensive fossil fuels. Currently, only 7% of the country’s energy comes from renewable sources, highlighting the urgent need for diversification in the energy mix.

To address systemic issues, Pakistan must also upgrade its aging transmission infrastructure to reduce power losses and theft. Additionally, tackling corruption and inefficiencies in state-owned generation and distribution companies (Gencos and Discos) will be critical in improving overall energy management. The severity of the crisis has prompted concerns from political leaders, including PML-N leader Nawaz Sharif.

 

Rising Electricity Costs and Public Impact

Nawaz Sharif has raised concerns about the burden of electricity bills, stating that high power costs affect all segments of society, not just the underprivileged. He emphasized that his previous government successfully mitigated load shedding and stabilized electricity prices. Sharif urged the current administration, led by Shehbaz Sharif, to take immediate steps to provide financial relief to the public and ensure a more sustainable energy future.