confronting energy crisis for sustainable future

Pakistan’s energy crisis remains a formidable obstacle to its economic progress, manifesting in chronic power shortages, outdated energy infrastructure, and an overreliance on fossil fuels. These issues have created an unstable environment for businesses and households alike, stifling economic growth and reducing competitiveness. Small and medium-sized enterprises (SMEs), the backbone of Pakistan’s economy, are particularly vulnerable. The frequent power outages disrupt industrial production and force businesses to rely on costly and polluting diesel generators to maintain operations. According to the Ministry of Planning, Development & Reform, power shortages cost the country approximately 4–6 percent of its GDP annually, highlighting their profound economic impact.

The country’s energy infrastructure further compounds the crisis. Pakistan’s electricity transmission and distribution system is antiquated and inefficient, resulting in significant energy losses. NEPRA’s 2021-22 Performance Evaluation Report revealed that technical and non-technical losses could reach up to 25–30 percent of the electricity generated. Such inefficiencies not only squander resources but also obstruct the integration of renewable energy into the national grid.

Adding to this challenge is Pakistan’s heavy reliance on fossil fuels, particularly natural gas and imported oil. Economically, this dependency places immense pressure on foreign exchange reserves and widens the trade deficit. The International Trade Administration reports that Pakistan imported approximately $15 billion worth of petroleum products in 2021, a massive strain on its economy. Fluctuations in global oil prices further exacerbate this vulnerability, making energy costs volatile and unpredictable.

Investing in renewable energy provides a promising solution to Pakistan’s energy crisis. The country is endowed with abundant renewable resources, including solar, wind, and hydropower. Solar energy, in particular, holds immense potential due to Pakistan’s year-round sunlight. Solar photovoltaic (PV) systems can be deployed on various scales, ranging from rooftop installations to expansive solar farms. According to Shams Power, Pakistan has the capacity to generate over 2.9 million megawatts (MW) of solar energy. Similarly, the country’s coastal and interior regions possess significant wind energy potential, with estimates suggesting a capacity of approximately 50,000 MW. Harnessing these resources can diversify the energy mix and alleviate the country’s dependence on imported fuels.

The International Renewable Energy Agency (IRENA) estimates that Pakistan could generate over 1 million jobs by 2030 through investments in renewable energy. Environmentally, reducing reliance on fossil fuels will significantly lower carbon emissions and air pollution, contributing to improved public health and environmental sustainability. However, the benefits of renewable energy cannot be fully realized without addressing inefficiencies in the energy system. Modernizing Pakistan’s energy infrastructure is a critical step toward reducing losses and enhancing reliability. Transmission and distribution networks must be upgraded to minimise energy wastage and support the integration of renewable sources.

Industrial energy management practices also hold great potential for optimizing energy use. Simple measures like upgrading machinery, implementing energy management systems, and monitoring usage can reduce operational costs and conserve resources.

Policymakers must also focus on creating a conducive environment for renewable energy investment. Streamlining regulations, offering subsidies, and ensuring transparent procurement processes can attract both local and foreign investors to the sector. Public-private partnerships can further accelerate the development of renewable energy projects by combining government support with private sector expertise.

On the consumer end, awareness campaigns are essential to promote energy conservation and highlight the benefits of renewable energy. Introducing renewable energy systems at the grassroots level, such as solar-powered water pumps for agriculture or small-scale wind turbines in rural areas, can demonstrate the practicality and affordability of clean energy solutions.

While renewable energy and energy efficiency measures are critical, they must be complemented by policies aimed at improving governance and accountability in the energy sector. Transparent tariff-setting mechanisms, strict monitoring of electricity theft, and ensuring fair access to energy resources are necessary to build trust and efficiency within the system. Strengthening institutions like NEPRA and streamlining decision-making processes will pave the way for more effective management of energy resources.

Pakistan’s energy crisis is a multifaceted problem that demands comprehensive and sustainable solutions. Investing in renewable energy, modernising infrastructure, and adopting energy-efficient practices are essential steps to ensure a stable and prosperous future. By leveraging its abundant renewable resources and prioritising energy sector reforms, Pakistan can overcome its energy challenges and lay the foundation for long-term economic growth.

This transition aligns with global efforts to combat climate change and build a sustainable future. Addressing the energy crisis not only promises economic benefits but also ensures the well-being of future generations by preserving the environment. A sustainable energy strategy will enable Pakistan to build a resilient economy, support its citizens, and contribute to global environmental sustainability.

MIAN MUHAMMAD KHALID REHMAN

— The author is an A-Level student at Aitchison College in Lahore.