IEEFA’s report assessing renewable energy status in Pakistan says its heavy reliance on fossil fuels in current energy mix makes it a cost burden on end users as well as government. The report suggest adding 1 GW solar & wind each per year. The photo shows as solar/wind site in Denmark. (Photo Credit: Regeringen.dk)
- IEEFA’s report assessing renewable energy status in Pakistan says its heavy reliance on fossil fuels in current energy mix makes it a cost burden on end users as well as government
- Having a 30% share of renewables in its energy mix by 2030 will help the country have access to cheaper and more diversified energy sources
- It suggests the country increases its solar and wind power capacity with 1 GW of annual installations each till 2030
- Central government needs to have an integrated long-term renewable energy plan in place that clearly defines targets
- Provincial governments should be encouraged to follow their own renewable energy ambitions
- Switching over to a competitive procurement process for renewables would further bring down prices for wind and solar
US Think-Tank IEEFA Suggests Norway Invest 190 Billion NOK ($25 Billion) To Renewable Energy Portfolio From Government Pension Fund
(01. September 2017)
At a time when most countries of the world are waking up to the potential of renewables in their energy supply, sunny Pakistan is still missing the point. The country’s current energy mix is heavily dependent on fossil fuels making up 70% of its energy supply, followed by seasonal hydro power with 20% share and nuclear power making up the rest, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA).
This policy is a huge cost burden on consumers, businesses and cash-poor government of Pakistan. The country could have a cheaper, more diversified electricity generation system leading to energy security if only the government included renewables in its list. The report ‘Pakistan’s Power Future: Renewable Energy Provides a More Diverse, Secure and Cost-Effective Alternative’, IEEFA suggests a 2030 energy model for Pakistan that is roughly split into 30% renewables, 30% thermal, 30% hydro and 10% nuclear power.
“IEEFA’s modelling suggests the Pakistan government can achieve almost 30% renewable energy generation by 2030 through proven clean energy technology already in place in Pakistan,” said IEEFA financial analyst Simon Nicholas. “By relying more on cheaper renewable energy, the 2030 model reduces the cost pressures of imports and delayed projects, creating the setting for government to attract investment in the abundant domestic wind and solar resources yet to be harnessed.”
Pakistan is endowed with ample wind and solar energy resources, which, when supported by ambitious policy settings, could drive down cost of renewables and reduce pollution. Referring to the country’s National Electric Power Regulatory Authority’s (NEPRA) data, IEEFA’s report shows annual levelized tariffs determined by the agency for recent projects reflects solar and wind as cheapest sources of energy in the Asian nation – with costs expected to continue to decline.
The levelized tariff for solar in 2018 averages around $0.0525 per kWh and for wind it is even lower at $0.043 per kWh, according to the report.
Yet, renewable energy installations are not growing at a fast pace. At the end of June 2018, total installed capacity of wind and solar power together was around 1.3 GW, with another 300 MW of bagasse-fuelled generation online. IEEFA suggests increasing solar power capacity from 0.4 GW in 2016-17 to 12.4 GW by 2029-30. In other words, 1 GW of installations per year, ditto for wind power.
For Pakistan to grow its renewables share, IEEFA suggests the central government to formulate a dedicated integrated long-term renewable energy plan that clearly defines targets. It should also fan the renewable energy ambitions of its provinces to flourish. A big policy push would be desirable, including moving to a competitive procurement process and encouraging growth of distributed renewables.
The IEEFA report on Pakistan is available on its website.