Daily Times

Target 7.2 obligates us to substantially increase the share of renewable energy in the global energy mix by 2030. It is noteworthy to mention here that Pakistan has been working towards Alternative and Renewable Energy (ARE). In this regard, it is well known that conventional technologies such as coal-fired power plants utilize tons of water – are we, as a water scarce nation, ready to invest in such new projects? According to the World Bank, Sustainable Energy for All (SE4ALL) database, the renewable energy consumption as a percentage of total final energy consumption for Pakistan was 46.48 percent, in 2015. One of the objectives of the draft Alternate and Renewable Energy (ARE) policy of 2019 is to increase the share of ‘green’ energy in the overall energy mix. The projects covered by this policy mainly include both conventional and renewable sources including geothermal, solar, wind, biomass, biogas, syngas, and ocean/tidal waves, etc. except for hydro projects. Hence, it is evident that energy, which is one of the culprits behind our problems, can be its own rescuer if we steer in the right direction and implement efforts which are not obstructed by pandemics or previous ruthless practices.

However, colossally, the progress on this particular target has been quite promising as evident by governmental policies. Under the ‘Roshan Balochistan’ Programme, the Balochistan government is planning to launch small scale solar power projects, from which the energy could be used for street lights and tube wells. To reiterate, very recently, there was a project approved by the World Bank on September 24, 2020 titled, ‘Khyber Pakhtunkhwa Hydropower and Renewable Energy Development Project’ under which there was an IBRD loan of $200 million. One of the aims of the project is to support Pakistan’s transition to renewable energy resources. Also, the ongoing ‘Sindh Solar Energy Project’ financed by the World Bank aims at clean energy generation with some of its objectives such as the development of solar parks, and deployment of solar home systems in prioritized areas by 2023. Moreover, in 2019, the Punjab government got five projects regarding renewable energy approved from the Central Development Working Party (CDWP). The State Bank of Pakistan also introduced its Financing Scheme for Renewable Energy where one of its scopes include financing for sponsors to set up renewable energy power projects for their use, as well as selling of electricity to the national grid.

If one thinks about great global innovations such as that of the internet, the story is similar across the world. Some countries exceeded at educating their masses with digital literacy and seared ahead, and some did not do so well

If we utilize our wind potential, then wind energy can cater much of our energy demand. Jhimpir Wind Corridor has an installed capacity of 980 MW. In August 2020, an MOU was signed between the government and wind power producers (WPPs) with regard to increasing the term of plants by five years against certain relief. According to the latest PES, the percentage share in electricity generation (GWH) from July 2019- April 2020 composed of 30.9 percent of hydroelectric generation, 58.4 percent of thermal, 8.2 percent of nuclear, and 2.4 percent of renewable sources. Here, it is significant to remember that thermal and renewable sources both suffered a decline in their percentage share from the last year. According to World Economic Forum’s 2020 report titled, ‘Fostering Effective Energy Transition’ – the Energy Transition Index for Pakistan ranked at 46.6 percent – this index is about the performance of countries in their energy system, and their readiness for a fast and effective transition. The relevant ministries need to keep a track of such statistics as a yardstick for measuring progress on this matter whilst keeping in consideration the fact that the development of ARE should be one of our major priorities in the times ahead for a sustainable future. These carbon-less technologies will also aid us in dealing with the ever-increasing temperature issues we face.

There is no doubt that an inescapable circular debt exists- which should be our main priority – in order to mitigate the loss to GDP, but that should not sideline us from achieving sustainable development through affordable and clean energy. Although a dramatic transformation in our energy system is not going to be a blip – our current progress on it is surging. The question remains still: will it be enough to meet the targets of SDG 7? To keep the bulbs switched on in the future, we need to achieve an equilibrium in our energy equation by dealing with the chronic issues of reducing losses in the generation capacity, a dénouement of transmission losses, and a reduction in our dependence on fossil imports, with a simultaneous transition to renewable energies in a steady way. These measures are essential unless we want to witness and contribute to the end of the fossil fuel era. An improvement in the life of the common man should be the target – including cleaner cooking fuels – which should be of a quality that does not affect health. Correspondingly, the prices and tariffs should be kept in check – taking into consideration the average income and socio-economic status of our society. In addition to a lower import duty – both at a micro or a macro level, the quality of whatever imports we make for our renewable energy in the future, should be sufficient for durable working. This should be done to avoid any public dilemma – where the citizens fear a transition, thinking that their investments might not bode well if the equipment is flawed, and of poor quality.

Vested and lobbied interests of various groups involved in this sector should be dealt – and they should not become an obstacle in the transition phase to renewable energies. The recent conversation and MoU signed between the Government of Pakistan and IPPs is a step in the right direction; although just a step. According to a press release by the World Bank in December 2018, reforms in the power sector could help Pakistan’s economy by saving $8.4 billion in business losses, and household incomes could increase by at least $4.5 billion a year. A healthy mix of public and private investments in the energy market can strategically induce a good competition and regulation. Pertaining to this issue, The World Bank, Private Participation in Infrastructure Project database highlights that investment in energy with private participation (current US$) for Pakistan amounted to 2,976,610 in 2019 – a strong feat. The same number totaled to 856,350 for India, and 9,710 for China in the same year.

However, certain structural issues need to be dealt with – for instance, the World Bank, Doing Business project reports the time required to get electricity for Pakistan as 112.7 days. This might impede public confidence for future prospects, and does not augur well for foreign investments in this sector. Here, it should not be forgotten that in order to start a transition journey, and ultimately sustain it, we need regulations aimed at managing new and existing reserves of resources. Pakistan has recently discovered gas reserves in Kalat, Balochistan – if we avoid the blame-game politics, we can utilize our resources in catering to our economic losses, and pave a path towards sustainable development with adequate resources.

Everyone can, and needs to play a part in it – independent research organizations and educational institutions should be facilitated at mapping out potential areas for wind corridors, hydel projects, and solar parks using state-of-the-art technology, such as satellite imagery. The concept of net metering should be introduced to the population at large, through media campaigns – this could benefit thousands of households. If one thinks about great global innovations such as that of the internet, the story is similar across the world. Some countries exceeded at educating their masses with digital literacy and seared ahead, and some did not do so well. Here we are, at the brink of a change in terms of less-carbon intensive growth that could benefit many households economically. ‘How will we benefit from this transition to renewable energy use?’ remains a question that our not so distant future policies can easily answer.

Dr Izza Aftab is the chairperson of the Economics Department at IT University, Lahore / Noor Ul Islam is currently working as a Research Associate at the SDG Tech Lab established in collaboration with IT University, Lahore