Launch of 20pc renewable energy by 2025

Presently the Government of Pakistan is intending to introduce renewable energy in Pakistan in phases where the first phase expects 20 percent by 2025. No doubt, Pakistan is successfully overcoming energy crisis, which has direct and indirect impact on all sectors of the economy, by raise in generation as well as in transmission capacity of the system. Pakistan’s new Renewable Energy Policy is predicted to attract investment opportunities because of transparent policies of the government. The Government of Pakistan has set ambitious targets to introduce 25 percent renewable energy by 2025. Sources recorded that further 30 percent renewable energy would be introduced through the end of 2030 with a 40 percent share of hydel power generation into the energy mix of Pakistan. It is said that renewable energy-based power plants would be recruited through open and competitive bidding transparently. The Government of Pakistan mentioned in its report that energy sector in the country, is confronted with demand supply gap, which needs to be filled up along with improvement in energy-mix for its supply at lower cost. In terms of energy-mix, Pakistan’s reliance on thermal which includes imported coal, local coal, RLNG and natural gas has been decreasing over last few years. Pakistan’s dependence on natural gas in the overall energy mix is on decline and the reduction of its share in the energy mix may be attributed to declining natural gas reserves as well as to the introduction of LNG since 2015. The share of renewable has steadily increased over the years (% share, however, in July-April 2020 has declined as compared to same period in 2019). The shares of Hydro and nuclear in energy-mix have also increased in FY2020 as against to FY2019. Such historical variability for each energy source in the energy mix of the country has been used to formulate the Integrated Energy Plan.

The Integrated Energy Plan will not only assist in envisioning the energy demands and respective supply paths of the future but also to formulate evidence based long term policy options. The Government officials also reported that energy systems globally are going by rapid transitions that will bring significant changes to the way of cars fuel, heat homes and power industries. These trends will have widespread implications for businesses, governments and individuals in the coming decades. A competition is underway among coal, natural gas and renewable to offer economic power and heat to Asia’s fast-growing economies. Coal is the incumbent in most developing Asian countries. Renewable, led through China and India are the main competitors to coal in Asia’s power sector. Developing states in Asia account for over half of the worldwide growth in generation from renewable. Demand for natural gas has also been growing fast as clean fuel of choice for industry. A raise of over 70 percent in Asia’s natural gas consumption comes from imports, mainly from LNG; however, the competitiveness of this gas in price-sensitive markets remains a key uncertainty. Regionally, primary energy demand in the Asia Pacific region is predicted to grow by over 40 percent by2040, based on the International Energy Agency’s central scenario, accounting for two-third of the worldwide growth. The Government officials also recorded that the development of Alternative and Renewable Energy (ARE) Sector was initiated under a phased, evolutionary approach constituting a strategic policy implementation roadmap under Policy for Development of Renewable Energy for Power Generation, 2006 (RE Policy2006). The aim was to raise the deployment of alternate renewable energy ARE technologies (ARETs) in the country. The Development of renewable energy based power generation projects is being pursued on IPP mode through private sector investors. ARE promises a higher proportion of the national energy supply mix and assists to ensure universal and affordable access to electricity in all regions of Pakistan.