Contributing to Pakistan’s energy transition

Context

The electricity market in Pakistan faces many challenges such as heavy reliance on high-cost imported fossil fuels, operational inefficiencies at distribution companies, inadequate generation capacity resulting in a widening gap between demand and supply, aging infrastructure, deteriorating financial indicators and many others. The government is taking steps to address these issues by investing in new power generation and transmission facilities and upgrading transmission and distribution circuits. It also aims to increase the share of renewable energy (RE) in its energy mix to 30 per cent by 2030. The measures introduced in the Alternative Renewable Energy Policy 2019 are expected to fully integrate RE into the country’s energy planning. The Government’s Solar Initiatives 2022 foresee the installation of large photovoltaic (PV) plants, solarisation of 11 kilovolt (kV)-feeders and increased installation of PV systems on public buildings.

Objective

The energy transition is making progress in Pakistan with improvements in the supply of renewable energy, as well as with better financing and measures for energy efficiency.

Approach

The project provides targeted technical assistance to public and private sector institutions to foster Pakistan’s energy transition. It aims to assist distribution companies in overcoming the challenges of increased penetration by developing renewable-energy roadmaps to modernise their organisation and their assets. It is also working on the development of software to support the solarisation of 11 kV feeders. The installation of net metering is being greatly accelerated by providing PV technicians with the relevant training. To achieve better rural electrification, two pilot projects are being carried out: installation of a DC mini-grid and the interconnection of isolated hydropower plants.

The associated “Pakistan-German Renewable Energy Forum (PGREF)”is an exchange platform for policymakers, research institutes and experts from both countries and a knowledge multiplier to disseminate best practices and introduce German companies to the Pakistani Market.

Last update: November 2023