Pakistan accelerates clean energy transition, thermal reliance drops

June 11, 2026 (MLN): Pakistan's energy sector is undergoing a historic green transformation, with total installed capacity surging to 49,651 MW as the nation decisively pivots away from expensive thermal power.

For the first time, clean and indigenous sources hydel, nuclear, and renewables have captured the absolute majority share, generating 53.1% of the country's electricity.

Driven by a massive explosion in consumer-led solar net-metering and strategic policy shifts, this transition is actively shielding the economy from global oil market volatility while laying the groundwork for sustainable, long-term power security, according to Chapter 14 (Energy) of the officially released Pakistan Economic Survey FY26.  

In March 2026, the nation’s electricity generation capacity expanded by 8.5% to reach 49,651 MW.

This growth was heavily fueled by consumer-driven solar net-metering, which contributed an impressive 7,319 MW to the national grid.

Consequently, the reliance on thermal power dropped significantly from 56.7% to 49.2%.

During the first nine months of the fiscal year, total electricity generation stood at 92,835 GWh, with sustainable sources taking the lead to transition the economy away from imported fossil fuels.

Total electricity consumption increased by 3.8% to reach 83,143 GWh during the reviewed period.

As visually depicted in the Sectoral Share in Electricity Consumption (%) charts, the household sector remains the absolute largest consumer, accounting for roughly 48% of the national grid's usage, though this reflects a slight reduction from previous years due to rising tariffs and conservation efforts.

The industrial sector follows closely, capturing a robust 32% share as manufacturing demands rebound.

The remaining consumption is distinctly segmented, with the commercial sector taking 8%, agricultural usage dropping sharply to 3% due to a massive shift toward solar-powered tube wells, and other governmental or public lighting categories absorbing the final 9%.

The Private Power and Infrastructure Board (PPIB) continues to attract massive private investments, currently overseeing 90 operational Independent Power Producers (IPPs) with a combined capacity of 20,769 MW.

 Looking toward the future, the Energy Mix of Upcoming IPPs, 6,536 MW perfectly illustrates the state's aggressive indigenization strategy.

A visual breakdown of this upcoming 6,536 MW pipeline reveals an overwhelming dominance of clean energy, with Hydropower accounting for a staggering 70% (4,564 MW) of the future capacity.

Thar Coal projects represent 20% (1,320 MW) to ensure baseline grid security, while the remaining pipeline is fragmented into Imported Coal at 3% (300 MW), Solar at 3% (200 MW), Wind at 2% (100 MW), and negligible traces of Bagasse and Gas.

The petroleum sector recorded a total consumption of 13.64 million metric tonnes (MMT) during the July-March FY26 period, marking a 3.5% year-on-year increase heavily dominated by the transport sector, which absorbed 82.5% of total demand.

An analysis of the Product-wise consumption of Petroleum Products, 000 MT highlights the monumental scale of specific transport fuels. Motor Spirit (MS) leads the volume charts at an incredible 5,777.3 thousand MT, directly followed by High-Speed Diesel (HSD) which registered a massive consumption of 5,361.2 thousand MT.

Furnace Oil (FO) continues to hold a significant but declining footprint at 1,421.3 thousand MT due to the power sector shifting to coal and hydel, while premium fuels like HOBC stand at 294.9 thousand MT alongside aviation and kerosene fuels making up the residual fractions.

Natural gas, providing roughly 29.3% of the primary energy supply, saw consumption average at 2,929 MMCFD, which incorporates 613 MMCFD of imported Re-gasified Liquefied Natural Gas (RLNG) to bridge persistent domestic shortfalls.

Simultaneously, the push for indigenous fuel security has accelerated local coal consumption, particularly within the power sector which absorbed 12,758.3 thousand metric tonnes, accounting for nearly 59.6% of national coal usage, while brick kilns and cement industries consumed the remainder.

Copyright Mettis Link News