The intensifying effects of climate change are becoming increasingly evident, with hotter summers leading to escalating demands for cooling, particularly in countries like Pakistan. As temperatures rise, the reliance on energy-intensive cooling systems, such as air conditioners and fans, significantly increases electricity consumption, placing immense pressure on the national grid. As of March 2024, Pakistan’s total installed electricity capacity stands at 42,131 MW, as reported in the Pakistan Economic Survey 2024. The country generated 92,091 GWh of electricity, with an average annual generation of about 10,513 MW. The household sector is the largest consumer, accounting for 49.2% of total electricity usage. The commercial sector follows with 6,905 GWh (10.1%), and other sectors such as street lighting and general services consume 4,530 GWh (6.6%). Together, these sectors make up 65% of the overall consumption, which fluctuates dramatically with seasonal demands. Electricity demand in Pakistan peaks at around 12,000 MW during the winter months. However, in the summer, it rises sharply to approximately 30,000 MW-a striking difference of nearly 18,000 MW. This seasonal variation is largely driven by the increased cooling needs, predominantly from the residential sector, exacerbated by suboptimal building insulation and the continued use of energy-inefficient appliances. Despite having adequate power generation capacity, distribution companies in Pakistan still implement load shedding in low-recovery areas to reduce financial and revenue losses. During these outages, especially in the sweltering summer heat, wealthier households increasingly turn to solar energy as a reliable alternative to grid electricity. Furthermore, the provincial governments of Sindh and Punjab have launched initiatives to solarize government offices and buildings, aiming to cut recurring costs and promote the wider use of solar energy. Pakistan’s energy landscape remains complex, with slow GDP growth since the COVID-19 pandemic exacerbating tariff challenges. By the end of 2024, Pakistan made significant progress in solar energy adoption, importing 22 gigawatts of solar panels-more than the total solar capacity of countries like Canada and the UK. This shift has been largely driven by market forces, including the declining cost of solar technology and rising diesel generator prices. Although the government’s involvement has largely been confined to removing import duties and initially supporting net metering policies-which have recently been rolled back-this shift represents a pivotal departure from Pakistan’s legacy of energy shortages and grid unreliability. The growing adoption of decentralized solar power, bolstered by improvements in battery storage technologies, is fostering a more resilient and self-sufficient energy landscape, diminishing reliance on the conventional centralized grid. Pakistan’s energy landscape remains complex, with slow GDP growth since the COVID-19 pandemic exacerbating tariff challenges. Despite sufficient power generation capacity, underutilization of infrastructure has led to rising capacity charges, creating tensions between the government, which struggles to reduce electricity costs, and industrialists, who argue that affordable energy is essential for economic growth. Additionally, Pakistan’s commitment to the IMF, which mandates the removal of fuel and electricity subsidies, adds further complexity. Structural and financial constraints limit the government’s ability to balance these demands, making it harder to achieve sustainable and inclusive development. Despite ongoing challenges, the government has introduced a notable relief package to ease the electricity cost burden across all consumer categories. Commercial rates have been reduced by Rs 8.58 per unit (12%), industrial by Rs 7.69 (13%), and residential by Rs 6.14 to Rs 6.71 per unit-translating to a 17%-32% cut based on usage. This timely measure has been welcomed by the business community, reflected in a positive stock market response, and is expected to have a broader stimulative impact on the economy. However, country’s energy sector faces significant challenges, exacerbated by inefficiencies in its transmission and distribution (T&D) systems, with losses in FY 2023-24 recorded at 18.31%, well above the allowable limit of 11.77%. These high losses add Rs. 276 billion to the circular debt, emphasizing the need for urgent reform in T&D infrastructure to ensure financial stability. Additionally, Pakistan’s per capita electricity consumption is far lower than that of developed economies, with Pakistan consuming only 644 kWh per person, compared to 9,610 kWh in Australia, 12,000 kWh in the US, 4,000 kWh in China, and 1,200 kWh in India. This disparity highlights a substantial gap in energy usage, offering significant potential for growth and development within Pakistan’s energy sector. The government’s efforts to address Pakistan’s energy challenges are hindered by a complex tariff structure and financial constraints. Industrialists are calling for tariff reductions, emphasizing that affordable energy is essential for boosting productivity and economic growth. However, policy limitations and ongoing issues like transformer overloading, generation losses from distributed generation during load shedding, and policy uncertainties complicate efforts to meet these demands. Additionally, the electricity grid faces immense pressure, especially in the summer months when consumption spikes to around 30,000 MW due to cooling needs, further stressing an already inefficient and outdated infrastructure. In response to the challenges facing its energy sector, Pakistan is focusing on improving energy efficiency while transitioning to a more sustainable energy model with increased reliance on renewable sources like solar power. This shift is part of a broader effort to enhance climate resilience and governance, moving away from a history of conflict and instability. However, the country faces significant hurdles, including heavy reliance on imported technology, which stifles local capacity, limits job creation, and makes the sector vulnerable to global supply chain disruptions. Additionally, high initial investments in renewable energy technologies pose a barrier to widespread adoption, while the ongoing climate crisis and infrastructure weaknesses present both immediate and long-term challenges. A key issue that remains largely unaddressed in Pakistan’s energy strategy is the underutilization of daylight during the summer months. Shifting school start times to 7 am and office hours to 8 am, as practiced in the EU, US, and India, could optimize energy usage, reduce cooling needs, and significantly lower electricity demand. To fully realize its renewable energy potential, Pakistan must focus on developing local manufacturing capabilities, fostering innovation, and reducing renewable energy costs. Additionally, significant investments in the electricity grid are necessary to improve its capacity and reliability, ensuring efficient integration and distribution of renewable energy. By addressing these challenges, focusing on energy efficiency, and transitioning to renewable sources, Pakistan can build a more sustainable and resilient energy future. This integrated approach-expanding renewable energy, modernizing the grid, and reducing costs-is crucial for establishing a sustainable, reliable, and equitable energy system. As Pakistan shifts to solar energy during the day, the evening transition to the grid will be a critical test of its stability and capacity to handle rising demand, especially during peak hours. The writer is a seasoned academic and researcher at Dawood University of Engineering and Technology (DUET), Karachi.