he need to curb global greenhouse gas emissions has never been more urgent. These emissions have increased 182 times from the pre-industrial era and will continue to increase in the future if we do not take sustained action. Delays in mitigation measures will have potentially irreversible impacts on the atmosphere, contributing to permanent global warming and climate change. We will then face more extreme weather events, frequent disasters, such as floods and droughts, food security challenges and severe public health problems.

Climate Watch data has revealed that Pakistan accounted for 0.93 percent of these emissions. This looks modest in comparison to the emissions by China (25.88 percent), United States (11.13 percent) and India (6.67 percent). Yet, the country is the 21^st largest emitter of greenhouse gasses even though its economy ranks 41st in the global ranking.

Energy production and consumption, chiefly reliant on fossil fuels, are primary reasons for the emission of greenhouse gasses. In Pakistan, the biggest share of these emissions stems from the power sector which emitted 229.07 million metric tonnes of carbon dioxide (CO₂) equivalent into the atmosphere, comprising nearly half of the country’s total emissions.

A high dependence on imported fuels drives up energy costs, heightens the need for foreign exchange and strains national finances.

The carbon and financial footprint of renewable energy, on the other hand, is rather low.  Pakistan has abundant renewable resources. It has vast solar power potential spread evenly across its territory and substantial wind resources along its southern and western regions. Recognising the transformative potential of these resources, the government has set ambitious targets under its Alternative and Renewable Energy Policy, 2019, aiming at deriving at least 30 percent of the country’s total electricity from those by 2030.

Despite these aspirations, Pakistan faces formidable obstacles in realising its renewable energy ambitions. The recent economic survey, for fiscal year 2023-2024, revealed that renewable sources currently contribute a mere 6.8 percent to the country’s total installed power capacity of 42,131 megawatts. A number of renewable energy projects are beset by regulatory delays that impede their progress and inflate their costs.

Out of the 84 projects (exclusive of those being planned and built for K-Electric) that have applied for generation tariffs, 46 have transitioned to commercial operations. A majority of those are wind power projects. Four solar projects: Access Solar Private Limited, Access Electric (Private) Limited., Bukhsh Solar (Pvt) Limited and Safe Solar Power Private Limited set up under the Renewable Energy Policy of 2006 have been pending for over a decade after receiving their generation licences and a letter of support.

The problems faced by utility-scale projects capable of catering to the electricity needs of thousands of consumers not only undermine Pakistan’s renewable energy goals, but also inflate project costs and undermine investor confidence. 

The renewable energy landscape is marked by significant regulatory challenges and policy inconsistencies which result in procedural and operation delays. Take the case of Access Solar (Private) Limited, having a capacity to produce 11.52 megawatts of electricity. It was to be built near Hattar village in Pind Dadan Khan tehsil of Jhelum district.

The investors applied thrice for upfront tariff before it was notified in the official gazette. They then claimed that the excessive delay in the project timeline had resulted in additional costs that needed to be incorporated in its notified cost-plus tariff. This made the electricity costly for its potential customers. Having crossed the tariff-related barrier, it faced delays in getting distribution company approval. This delaying the financial close and raised the costs further.

The Western Energy (Pvt) Limited, having a capacity of 50 megawatts was intended to be installed at Jihmpir, in Thatta district. The first letter of intent was sent to the WEPL in 2013. It was later extended through 2018. The company received the generation licence in 2017. The same year it submitted feasibility studies to the relevant authority for approval. However, because the proposed site was close to the Pakistan Air Force’s Bholari Air Base project, the company was asked to relocate the project site. The WEPL carried out fresh feasibility studies for the wind potential with assistance from the AEDB, the Energy Department, and the government of Sindh.

Protracted delays also result in higher development costs for lengthy trips, lender meetings and other administrative costs. The WEPL claimed that a lot of time and money were wasted. They also claimed that proposing a site close to an air force base was not their fault.

Three other solar and wind projects - Zorlu Solar Pakistan (Private) Limited, Transatlantic Energy Private Limited and Shaheen Renewable Energy Private Limited having a capacity to produce 100 megawatts, 48.3 megawatts and 51 megawatts of electricity, respectively —obtained LOIs and tariffs determination in 2017 and 2018 but have not become operational. Now their tariff determinations have expired.

The problems faced by utility-scale projects — capable of catering to the electricity needs of thousands of consumers — not only undermine Pakistan’s renewable energy goals, they also inflate project costs and undermine investor confidence. To address these problems, the government should avoid making frequent and disruptive changes in its policies.

The developers of these projects should be able to obtain the necessary permissions through a smooth process premised on a close and effective collaboration among all the government institutions involved.

The writer is a researcher at PRIED. She can be contacted at qurratulain@priedpk.org