Germany reaffirms support for Pakistan’s energy reforms

ISLAMABAD: German Ambassador to Pakistan Alfred Grannas on Tuesday reaffirmed Germany’s continued support for Pakistan’s ongoing energy sector reform efforts aimed at bringing down the energy costs and enhance efficacies.

“Energy intelligence and battery storage technologies are making electricity more affordable with each passing day. Germany is committed to supporting Pakistan’s energy sector reforms to address critical challenges,” Grannas said during a meeting with Power Minister Sardar Awais Ahmed Khan Leghari in the federal capital.

Germany has been a long-standing partner in Pakistan’s energy sector, focusing on sustainable development, renewable energy adoption and efficiency enhancements. Recent collaborations include the integration of smart grid solutions, renewable projects and battery storages.

The ambassador highlighted Germany’s contributions through private sector partnerships that have driven advancements in Pakistan’s energy transition. He pledged sustained collaboration to modernise the country’s power sector and enhance energy affordability.

“The German private sector is playing a dynamic role and will continue collaborating on multiple initiatives,” he said, citing successful projects combining German innovation with local expertise.

The ambassador’s remarks come as Pakistan continues grappling with high power generation costs and inefficiencies in its energy sector.

Discussions between the two sides centred on energy sector reforms and opportunities to strengthen cooperation in renewable energy, Energy Intelligence (EI) and battery storage technologies. They agreed to enhance collaboration in renewable energy and continue consultations on developmental projects.

“Germany is a global leader in renewable energy,” said Power Minister Awais Leghari, adding that Pakistan is committed to reshaping its energy mix to ensure sustainability and affordability.

Leghari detailed Pakistan’s renewable energy ambitions, stating, “By 2034, Pakistan aims to include 88 percent renewable energy in its energy mix.” He also emphasised efforts to introduce a competitive electricity market to expand trading opportunities.

He invited German investors to explore Pakistan’s electricity sector, citing significant opportunities for growth. “There are ample opportunities for investment in Pakistan’s power sector, which German investors can fully capitalise on,” Leghari said, stressing the importance of fostering business-to-business (B2B) relationships.

He further lauded Germany’s role as a valued development partner, emphasizing its contributions to Pakistan’s sustainable energy goals. “Germany is a valued development partner, and promoting B2B linkages is a key element of our bilateral relationship,” Leghari said.

The meeting underscored the importance of German-Pakistani cooperation in addressing global energy challenges and achieving sustainable development objectives. Under the reforms agenda, the government is focusing on EI that refers to the strategic use of data, analytics, and advanced technologies to optimise energy production, consumption, distribution, and management. It combines insights derived from energy systems with tools like artificial intelligence, machine learning and big data to improve efficiency, reduce costs and support sustainability goals.