Over the next three years, international studies recorded that worldwide electricity demand is expected to rise at a faster rate, growing by an average of 3.4 per cent yearly through 2026. The gains will be driven through an enhanced economic viewpoint, which will contribute to faster electricity demand growth both in emerging and advanced economies.
| Commercial Energy Consumption | |||||||
|---|---|---|---|---|---|---|---|
| Year | Oil/Petroleum (tons) | ||||||
| Households | Industry | Agriculture | Transport | Power | Other Govt. | Total | |
| 2010-11 | 85,449 | 1,355,443 | 40,597 | 8,892,268 | 8,138,956 | 373,794 | 18,886,507 |
| 2011-12 | 79,448 | 1,419,125 | 23,297 | 9,265,883 | 7,594,663 | 295,847 | 18,678,263 |
| 2012-13 | 97,847 | 1,379,096 | 31,828 | 9,817,546 | 7,749,007 | 317,805 | 19,393,129 |
| 2013-14 | 100,679 | 1,297,035 | 46,655 | 10,299,718 | 9,006,085 | 358,512 | 21,108,684 |
| 2014-15 | 89,017 | 1,300,190 | 37,235 | 11,372,924 | 8,995,231 | 365,471 | 22,160,068 |
| 2015-16 | 74,357 | 2,023,377 | 14,512 | 13,022,573 | 7,765,629 | 386,232 | 23,286,680 |
| 2016-17 | 77,169 | 1,990,398 | 12,671 | 14,582,925 | 8,531,825 | 366,958 | 25,561,946 |
| 2017-18 | 66,075 | 1,784,781 | 14,527 | 16,047,392 | 6,377,388 | 387,801 | 24,677,964 |
| 2018-19 | 60,557 | 1,299,437 | 15,021 | 14,673,564 | 2,759,465 | 409,132 | 19,217,176 |
| 2019-20 | 45,844 | 1,221,474 | 11,993 | 13,861,073 | 1,526,796 | 371,303 | 17,038,484 |
| 2020-21 | 29,816 | 1,472,777 | 12,134 | 15,779,499 | 2,364,586 | 306,961 | 19,965,773 |
| 2021-22 | 29,522 | 1,332,899 | 11,822 | 17,409,035 | 3,683,322 | 373,489 | 22,840,089 |
| 2022-23 | 17,952 | 1,126,885 | 9,209 | 13,606,565 | 1,664,850 | 364,001 | 16,789,462 |
| (July-March) | |||||||
| 2022-23 | 13,547 | 889,708 | 7,400 | 10,254,531 | 1,417,076 | 262,263 | 12,844,525 |
| 2023-24 | 18,803 | 815,318 | 10,161 | 9,764,549 | 520,698 | 224,695 | 11,354,224 |
Mainly in advanced economies and China, electricity demand will be supported by the ongoing electrification of the residential and transport sectors, also a notable expansion of the data centre sector. In 2023 the share of electricity in final energy consumption is estimated to have reached 20 per cent, up from 18 per cent in 2015. While this is progress, electrification is required to accelerate rapidly to meet the world’s decarbonisation targets.
In the IEA’s Net Zero Emissions by 2050 scenario, a pathway aligned with limiting worldwide warming to 1.5°C, electricity’s share in final energy consumption nears 30 per cent in 2030. Electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026. In many regions data centres are significant drivers of growth in electricity demand. After worldwide consuming an estimated 460 terawatt-hours (TWh) in 2022, data centres’ total electricity consumption in 2026 could reach greater than 1000 TWh. Approximately 85 per cent of additional electricity demand by 2026 is set to come from outside advanced economies, with China contributing substantially even as the country’s economy undergoes structural changes. China’s electricity demand in 2023 rose by 6.4 per cent, driven by the industrial and services sectors.
For economic growth according to the government of Pakistan, energy is inarguably one of the most significant inputs that can sustain commercial and industrial activities. Since 2013 the sector has progressed in terms of power generation and reducing power outages. The Initiation of CPEC power projects has addressed historical gaps in electricity production and improved the reliability of the supply chain.
In the fuel mix, however, the reliance on imported and costly fossil fuels for electricity generation underscores the need for a shift.
Our country is taking steps towards meeting its energy demand and reducing greenhouse gas emissions. The Government of Pakistan to attain its clean energy goals; is actively pursuing large-scale renewable energy investments.
Statistics showed that by 2030 Pakistan has set a target to reduce its 50 per cent greenhouse gas emissions, and clean energy expansion will play a crucial role in attaining this aim. The Government of Pakistan developed a wind power energy corridor along the southern coastal regions of Sindh and Balochistan. Solar power in 2013 entered Pakistan’s energy mix after the government launched a set of support policies to foster renewable energy development.
On the other hand, nuclear power plants (NPPs) are a reliable source of electricity. They can run for up to 18 months without refueling and store enough fuel for another 18 months on-site. This makes them immune to short-term changes in fuel prices or availability and permits them to attain high-capacity factors. The nuclear fleet, comprising six NPPs with a total installed capacity of 3,545MW, contributed approximately 18.2 per cent of the total electricity generation in the national grid, during July-March FY 2024 (NEPRA).
The Transport sector in our country is the main consumer of petroleum products, covering 79 percent of total demand. However, during FY2024, the demand for Motor Spirit (MS) and High-Speed Diesel (HSD) has decreased chiefly because of the high prices of these products; thus, the total consumption for petroleum products declined by 7.2 per cent during July-March FY2024, compared to the corresponding period of the previous fiscal year. In the gas sector, the total gas consumption was registered at 3,207 mmcfd from July-March FY 2024, which includes natural gas consumption of 2,512 mmcfd and 695 for RLNG. Statistics showed that during FY2024 (July-March), total electricity consumption was registered at 68,559 GWh. The Household sector is the largest consumer of electricity, consuming 33,737 GWh (49.2 per cent), followed by the industrial sector with 18,022 GWh (26.3 per cent). Moreover, agriculture and commercial sectors consume 6,905 GWh (10.1 per cent) and 5,365 GWh (7.8 per cent), respectively, whereas the electricity consumption in other sectors (streetlights, general services, and other government) is 4,530 GWh (6.6 per cent). Unluckily electricity costs in Pakistan, one of the world’s poorest countries, doubled and even tripled, making the costs almost unbearable for many families. The Government of Pakistan must reduce energy prices by effective policies in the country.