ISLAMABAD: Pakistan’s ambitious renewable energy plans need to be coupled with close attention to addressing the system’s constraints to reduce the volume of unserved energy on the one hand and accommodate the intermittency of renewable energy on the other.
This was the consensus reached at a webinar titled “Emerging trends in Pakistan’s renewable energy sector: Charting the agenda for 2030 and beyond,” organised by the Sustainable Development Policy Institute (SDPI).
Highlighting the current challenges faced by the power sector and the milestones needed to achieve a stable and sustainable energy ecosystem, speakers underscored that the addition of renewable energy is non-negotiable in today’s climate. However, this should be coupled with the modernisation of the grid.
K-Electric’s Chief Marketing and Communications Officer, Sadia Dada shared an overview of KE’s Investment Plan, which had already been submitted to the regulator. She outlined the company’s plans to expand the utility’s transmission and distribution capacity, preparing it to accommodate approximately 1200 MW of renewable energy by FY2030 as envisioned under the utility’s Power Acquisition Programme (PAP). She maintained that these programmes are being developed in alignment with national targets under the Indicative Generation Capacity Expansion Plan (IGCEP) and entail a long-term, optimal cost strategy plan for the expansive growth of power generation within a set of prevailing policies and technical and socio-economic considerations.
“In the next seven years, we aim to reduce our reliance on imported fuels to 51% while increasing our dependence on green sources to 49%. We must look at our approach in a holistic manner because our priority is to maintain energy security for our customers. We’ve seen that climate change is impacting countries which were previously relying heavily on renewable energy, making it difficult to maintain grid stability,” she said. “Cities like Karachi also present a unique case study, where we see power demands peaking twice in a 24-hour period, which requires a case-specific approach.”
Energy Consultant Dr Irfan Ahmed believes that renewable energy projects are front-loaded and require upfront heavy investments. He noted that Pakistan needed to be ‘self-reliant’ and would eventually have to opt for local manufacturing due to foreign exchange constraints. He maintained that Pakistan’s electrical network is ‘bumpy,’ leading to frequent damage to electrical plants and revenue loss. Therefore, it is of paramount importance that non-operational plants are repaired locally and spare parts are produced for sustainable operations to avoid ongoing problems.
Dr Khalid Waleed, an SDPI Research Fellow, said that the country’s transition to renewable energy should be gradual and orderly to prevent creating more problems for the energy ecosystem. He further emphasised the need to create a conducive environment and explore distribution generation models to effectively bridge the gap between load and generation centres. This requires national dialogues to shore up investor confidence in transmission and distribution projects, he added.
Renewable Energy Expert Fozan Waheed discussed how sudden curtailments in wind power projects jeopardise the grid and make it prone to blackouts. Citing international examples, he mentioned that China invests up to $75 billion in their grid to ensure long-term energy security. He further stated that the sustainability and success of Pakistan’s energy sector rely on learning from the best practices of leaders in the energy space and preparing a forward-looking strategy that addresses the country’s specific needs.
Amreli Steels Limited, Head of Energy & Sustainability, Abubakar Ismail remarked that more industries are embracing solar power with increasing interest in wind and biomass energy sources. However, current economic conditions pose significant challenges to investment across all sectors, including renewable energy. He added that fostering growth and development in the renewable energy sector requires economic and political stability. Open access policies and the implementation of the Competitive Trading Bilateral Contract Market (CTBCM) are crucial steps towards enhancing energy adoption in Pakistan, promoting competition, efficiency, and transparency in the energy market, ultimately benefiting consumers and producers.
The session concluded with a vote of thanks to all participants by Ubaidur Rehman Zia, the moderator of the session and Senior Research Associate & Head of the Energy Unit at SDPI.
