In Pakistan, a confluence of interconnected crises of economy, energy and climate change is expected to exacerbate further in future, if long-term planning is not on the agenda of national discourse. The root cause lies in economic turmoil, a factor that not only saps the country’s prosperity but also affects unsustainable energy supplies which reflects in environmental degradation. The vicious cycle continues, as these unsustainable energy choices result in economic turmoil, driven by increased imports and environmental degradation from rising carbon emissions. To solve this multifaceted crisis, Pakistan must embark on a journey of long-term planning and holistic policy formulation, with the crucial integration of sustainable energy policies into the political discourse and there is a dire need to formulate a charter on energy resilience for Pakistan.
Presently, Pakistan faces the daunting task of increasing its primary energy consumption by approximately 4.35 per cent annually to bolster its GDP by one per cent each year, vital for sustaining economic growth. The country’s focus has shifted towards a sustainable energy mix, with an emphasis on renewables to reduce reliance on imported fuels. In a broader spectrum of this charter, a standout initiative potentially is the national solar energy policy, aiming to enhance energy security and decrease dependence on imports as well as to provide a national framework and guiding principles for solar installation and to address regional variations in terms of utilization of solar power. Obviously, hurdles persist, especially in expanding solar and wind energy capacity, necessitating innovative policies rooted in robust data modelling and research.
In this intricate landscape, regional geopolitical dynamics and collaborations with neighbouring nations play a pivotal role. Pakistan stands at a crossroads, possessing diverse regional energy options and the potential to emerge as an energy hub and transit country. The burgeoning population heightens the urgency for energy security, essential to sustain the nation’s economic growth and decrease dependence on imported fuels. However, despite South Asia’s abundant renewable energy potential, obstacles like financial constraints and non-cost-reflective tariffs hinder progress. Additionally, Pakistan finds itself amidst fierce global competition involving the United States, China, and Russia, especially in the energy sector. Navigating this competition while ensuring internal stability, economic growth, and regional peace is paramount.
Pakistan stands at a crossroads, possessing diverse regional energy options and the potential to emerge as an energy hub and transit country.
Keeping in mind the geographical variability, sectoral consumption and changing dimensions of geopolitics, the solution does not rest solely on renewable electricity. A holistic energy transition strategy is imperative, one that combines the strengths of nuclear and hydroelectric power, creating a diversified energy mix that mitigates risks, moreover, there is a need to include other sectors such as transportation, industrial heat and household cooking to achieve long term sustainability from energy transition. Exploring revolutionary solutions is essential, such as emerging technologies like advanced solar solutions, energy storage systems, and smart grids. Advanced solar technologies, including floating solar power plants on reservoirs and canals, hold the promise of meeting electricity demands with minimal land use.
Another important potential component of this charter is to address the challenge of intermittency and ensure that a stable power supply can be achieved through energy storage solutions propelled by battery advancements. Pakistan’s commitment to derive 60% of its energy from renewables by 2030 is commendable, yet it is crucial to address governance challenges, coordinate energy policies, and establish long-term planning to maximize the potential of these innovations. The nation heavily relies on imports, with petroleum products constituting 80% of its energy requirements, alongside significant imports of gas, LPG, and coal. Recent energy imports from Russia present new opportunities, though challenges like insufficient investment in local energy sources persist. Diversification and exploration of partnerships are vital to ensure energy security and affordability. In this regard, a national green hydrogen policy can be effective, which can be produced through the sector coupling of wind energy to balance the intermittent nature of variable renewable energy.
The added aspect of this charter is to debate the impact of energy expansion and transition in terms of social justice, the choices made in energy sources resonate profoundly in social and economic spheres, influencing economic security, environmental well-being, and overall quality of life. Job creation and improved electricity access carry immense social and economic benefits, underlining the need for comprehensive and inclusive energy policies. Large-scale energy projects can significantly impact communities socially and culturally, emphasizing the importance of community engagement.
Pakistan must now explore international collaborations in the energy sector, fostering knowledge exchange, technology transfer, and financial support. Engaging with initiatives like the International Energy Agency’s Technology Collaboration Programmes (TCPs) and Mission Innovation (MI) enables Pakistan to accelerate clean energy innovation and learn from successful energy transitions. Collaboration with the European Union (EU) opens avenues to funding, expertise, and advanced technology, enhancing Pakistan’s energy sector efforts. These global partnerships serve as models, offering invaluable insights for Pakistan’s energy transition and supporting successful implementation.
To effectively address energy resilience in Pakistan, harnessing the potential of demand-side management (DSM) is crucial. DSM acts as a linchpin, addressing the pressing issue of circular debt in the energy sector exacerbated by economic turmoil. It plays a vital role in managing escalating energy demand, promoting financial stability through enhanced energy efficiency, load shifting, and strategies to reduce peak demand, thus improving electricity collection methods. Additionally, DSM empowers the government to deploy efficient technologies, mitigating losses and boosting revenue.
While Pakistan grapples with significant challenges in implementing energy policies, the art of policymaking transcends mere replication. It demands a deep understanding of Pakistan’s unique challenges and opportunities. It’s a game of scale, where localized efforts aggregate to create a nationwide impact.
The nation’s underdeveloped energy infrastructure, particularly the lack of transmission lines and grid facilities in remote areas, poses challenges for renewable energy adoption. Political instability, regulatory ambiguity, and the absence of long-term planning further entrench reliance on fossil fuels. To overcome these hurdles, Pakistan must formulate a comprehensive energy policy promoting renewable technologies while addressing corruption and affordability concerns. Creating an enabling environment for energy companies and streamlining licensing procedures and regulatory frameworks are essential steps forward.
In this journey, energy conservation plays a pivotal role in unlocking the potential of renewables and reducing dependence on imported fuel. Globally, governments are spearheading campaigns, energy audits, and community-based programs to educate the public about energy conservation.
Renewable energy projects bring a host of economic advantages, fostering job creation, attracting investments, and propelling economic growth. The construction and maintenance of renewable energy infrastructure generates diverse employment opportunities, invigorating local economies and reducing unemployment rates. These initiatives draw substantial investments from both the public and private sectors, supported by incentives and loans, promising stable returns for investors. Moreover, renewable energy diversifies economies, especially in regions reliant on fossil fuels, offering alternative income sources. As renewable technology costs decrease, building new infrastructure becomes economically efficient, leading to long-term savings for consumers and businesses, and stimulating economic growth. Additionally, reducing dependence on fossil fuels not only safeguards the environment but also promotes energy security, nurturing a stable and resilient economy in the long term.
Successful renewable energy projects worldwide underscore the significance of community engagement, local ownership, capacity building, and sound technical design. To expedite the transition to sustainable energy, policymakers and stakeholders must focus on comprehensive energy policies addressing corruption and affordability issues. These policies should create a favourable environment for energy companies, streamline procedures, and maintain a stable regulatory framework. Investment in renewable energy infrastructure, particularly in remote areas, can create jobs and boost local economies.
Public awareness initiatives, like energy audits and community-based programs, are vital for educating the public about renewable energy benefits. Therefore, the charter of energy resilience should also include the national procurement policy of renewable energy projects that will ensure the inclusion of the community’s benefits as the top priority in project development. Moreover, encouraging international cooperation through organizations like IEA and IRENA facilitates knowledge exchange and technology transfer. Policymakers should provide incentives such as tax credits and subsidies to promote renewable energy adoption among businesses and households. Engaging with local communities ensures socially and culturally sustainable energy projects while promoting international cooperation on energy security guarantees a focus on clean and inclusive transitions.
This transition demands more than scientific know-how; it requires political and economic stability. Stakeholders must align their interests with the broader goal of sustainable energy for Pakistan. Ensuring transparency and effectiveness mandates routine accountability audits. By illuminating the dark corners of our energy landscape, we gain insights into our progress and chart the path forward. In this intricate dance of challenges and opportunities, Pakistan stands on the cliff of a sustainable energy future, where collective efforts and strategic vision can pave the way forward.
The writer is a Research Associate at the Sustainable Development Policy Institute (SDPI).
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