Pakistan moves toward clean energy with over 50% power from eco-friendly sources

June 09, 2025 (MLN): Pakistan generated 90,145 GWh of electricity during the first nine months (July-March) of FY2025, of which 53.7% was contributed by hydel, nuclear, and renewable sources, which signals a welcome transition toward indigenous and environment-friendly energy sources, according to the Economic Survey 2024-25.

The rationale behind Pakistan’s energy reforms stems from the sector’s central role in driving economic and industrial development, influencing productivity, trade competitiveness, and overall quality of life.

Despite enduring challenges in affordability, security, and sustainability, the government's strategic interventions have begun yielding visible results.

As of March 2025, the total installed electricity generation capacity reached 46,605 MW, a 1.6% rise from the previous year, mainly due to a 2,813 MW increase through net metering.

Notably, 44.3% of this capacity is now contributed by hydel, nuclear, and renewable sources, reflecting a deliberate reduction in thermal reliance.

Electricity consumption during the same period fell by 3.6% to 80,111 GWh, attributed to conservation efforts, higher tariffs, and off-grid solar adoption.

The household sector remained the dominant consumer, accounting for nearly 49.6% of national usage.

The Private Power and Infrastructure Board (PPIB) played a pivotal role in the sector’s evolution by facilitating 88 operational Independent Power Producers (IPPs) with a cumulative capacity of 20,726 MW.

Of the upcoming power projects under PPIB’s facilitation, totaling 6,536 MW, an impressive 84% are based on clean energy sources like hydel, solar, wind, and bagasse.

In the petroleum domain, consumption stood at 13.17 million tonnes, reflecting a 7.04% increase.

However, reliance on imported oil persisted, although stable global prices helped stabilize the import bill.

Power sector petroleum usage declined sharply by 77.68% due to the growing reliance on hydropower, nuclear, coal, and LNG.

Natural gas consumption averaged 3,143 MMCFD, with the power, domestic, and fertilizer sectors making up the bulk of usage.

LNG continued to bridge the supply gap amid depleting indigenous reserves.

Coal retained its importance in power generation, with Thar-based projects supplying a growing share of electricity.

Total coal consumption reached 16.2m tonnes during July-March FY2025, with the power sector consuming 11.28m tonnes.

The government’s strategy emphasizes phasing out expensive fossil fuel-based generation and promoting private investment in the energy sector.

It also focuses on enhancing regulatory frameworks under policies such as the Integrated Generation Capacity Expansion Plan (IGCEP), National Electricity Policy 2021, and Alternative & Renewable Energy Policy 2019.