‘Electric-centric’ approach may improve energy security: study

KARACHI: Pakistan’s transition to residential electrification requires a strategic, well-coordinated approach to address the pressing supply-demand gap in its gas sector, currently exacerbated by dwindling indigenous gas reserves, rising LNG import costs, and a burdensome circular debt.

This challenge underscores the urgency for alternative solutions to meet residential energy needs, according to the Policy Research Institute’s study, ‘Building a Sustainable Future: Transitioning to All-Electric Homes’.

The report argues that moving from natural gas to electric alternatives in households can reduce energy imports, ease financial pressures, and promote environmental sustainability.

The study provides a comprehensive analysis of the economic and environmental benefits of shifting household appliances for space heating, water heating and cooking from gas to electricity. It presents a compelling case for an electric-centric approach that aligns with Pakistan’s energy security and climate goals.

The findings highlight that this transition, if supported by structured policy measures, could alleviate Pakistan’s gas supply challenges and establish a resilient, sustainable energy framework. The switch to electric appliances can yield significant cost savings and emissions reductions for households across consumption levels. Low-consumption households could save around $1,789 annually and cut CO2 emissions by 5.7 tonnes. Medium-consumption households may see $3,203 in savings with a 34.8 per cent reduction in emissions (10.1 tonnes CO2), while high-consumption households could save $4,403 annually, reducing emissions by 40.8 per cent (13.9 tonnes CO2). The report recommends financial incentives -- such as targeted subsidies, zero-interest loans and tax rebates for efficient technologies (eg, electric geysers and solar heaters) -- to support this transition, particularly for high-demand households. Local production of efficient appliances is also advised to reduce reliance on imports and improve affordability.

Tiered subsidies, public awareness initiatives and technician training are critical for enabling widespread adoption of electric alternatives. Highlighting the potential for up to 40.8 per cent emissions reduction in high-consumption households can further boost public support. A swift transition will help address the gas sector’s immediate pressures while enhancing Pakistan’s long-term energy security, economic resilience and climate commitments.

The current gas crisis underscores the urgency of switching to electrified residential energy solutions for cooking, space heating and water heating, which could significantly lower greenhouse gas emissions, reduce fuel imports and improve household energy efficiency.

The report suggests that Pakistan has a clear opportunity to secure a sustainable energy pathway by implementing measures to drive this transition. Policy frameworks should prioritise residential electrification and expand the use of alternative technologies. As a first step, Pakistan urgently needs a comprehensive roadmap and strategy for transitioning from gas to electricity. A cohesive strategy should focus on promoting energy-efficient electric appliances and sustainable energy options, with incentives to reduce the upfront costs of alternative technologies like heat pumps. Low-interest loans or installation grants can accelerate adoption, especially among medium- and high-consumption households, which would benefit the most.

Given Pakistan’s high cooling demand, priority should be placed on appliances and systems optimised for cooling, such as inverter air conditioners and reversible heat pumps. These solutions, adapted for local climate needs, ensure alignment with cooling requirements while also providing limited heating options.

The study notes that solar thermal systems offer a cost-effective solution for water heating in sun-rich areas. The government should incentivise solar thermal technology adoption through subsidies or grants, particularly where space heating is essential. This approach could reduce gas dependency and ease electric grid demand.

As most heat pumps are currently imported, government support for their import and distribution would help replace gas water heaters. Incentives for local manufacturing and assembly of heat pumps would also improve affordability.

Partnering with suppliers to provide cost-effective electric geysers and rebate programs could make these solutions accessible to households with limited budgets. Establishing energy efficiency standards and labelling for electric geysers would further help consumers choose the most energy-saving models.

Encouraging advancements in energy efficiency, renewable technologies and carbon footprint reduction will foster innovation in the appliance sector. Government-backed grants, incubation programmes, and financing options for startups could accelerate the development of tailored solutions for Pakistan’s energy and climate needs.

The report also recommends a restructured tariff system to make electricity a cost-effective choice for residential heating and cooking. Reduced rates during off-peak hours or winter-specific tariffs could encourage households to use electric heating when grid demand is lower. A tiered tariff system offering discounts for energy-efficient appliances would support sustainable choices while balancing grid demand.

Updated building codes should facilitate the transition from gas to electric appliances, addressing factors from infrastructure upgrades to energy efficiency and safety. Clear standards and guidance for retrofitting existing buildings will help smooth the shift to electrification. Current building codes, such as those by the LUMS Energy Institute, should be enhanced to include guidelines on efficient electric appliances in households.

The regulatory authority must have sufficient resources, technical expertise, and independence to effectively guide, monitor, and enforce this transition. A strengthened regulatory framework will introduce targeted regulations, ensure compliance, and steer the market towards energy-efficient electric appliances, ensuring effective implementation and necessary adjustments. A structured policy approach, supported by a comprehensive roadmap for the planned transition, could enhance Pakistan’s energy security, economic stability, and environmental sustainability, building a resilient future for its citizens, the study concludes.