- Significant investments from China, EIB and USAID propel Pakistan towards its renewable energy goals
- Political will, public-private partnerships, and more foreign investments are key to the energy transition
Interview with Muhammad Khalid — an analyst
Profile:
Muhammad Khalid is a security, management and education professional who is equipped with over 30 years of diversified international work experience including the energy sector. He is a humble researcher, a thinking mind and is educated till M.Phil. He loves adventure and have climbed up to 7,000 meters high peaks in Pakistan and Turkiye. His other interests include tracking, reading, sightseeing, preserving nature and long walks.
PAGE:Â How would you comment on the progress of the alternative energy sector in Pakistan?
Muhammad Khalid: Adopting alternative energy means has emerged as a popular trend in Pakistan. Hydro, solar and wind energy are major contributors to alternative energy means in Pakistan. Pakistan has a potential of 100,000 + MW of electricity generation capacity through wind turbines only. Currently, 36 private wind projects are producing around 1,845MW. Pakistan’s renewable energy policy envisages generating 60% of the country’s energy from renewable resources by 2030.
The Sindh wind corridor alone has the potential to generate 50,000MW. According to the International Renewable Energy Agency (IRENA), Pakistan’s solar installed capacity was 1,244MW. Around 10.57% of Pakistan’s total installed power generation capacity comes from the alternative energy sector, which includes wind, solar and biogas.
PAGE: What is your standpoint on local and foreign investment in alternative energy projects?
Muhammad Khalid: Local and foreign investors are very interested in investing in alternative energy projects in Pakistan. China has invested immensely in this regard. In Jhimpir near Karachi, the Three Gorges Corporation of China has established a wind corridor that can produce up to 1,1000MW. China is also interested in investing in the Thar coal project. Three Gorges Corporation of China has completed a 720MW project in Karot in northern Pakistan. Work is in progress on a 1,124MW hydropower plant near Muzaffarabad, Azad Kashmir. Another Chinese-assisted 840MW project has recently been approved. At Gwadar seaport, China has assured us that it will establish a 300MW solar plant. At Terbela Dam, the T-5 extension Project to generate 1,530MW is in progress which is being funded by the consortium. The European Investment Bank (EIB) has also provided 100 million euros to assist in promoting the alternative renewable energy sector. Since 2010, USAID has invested $2.6 billion to develop wind corridors and has supported two-thirds of current renewable energy capacity excluding hydropower.
PAGE: What must be done to promote alternative energy to avert enormous energy import bills?
Muhammad Khalid: In 2023, Pakistan’s energy import bill was $17.5 billion,  which is projected to increase to $31 billion in 2031. If alternative means are not adopted, the import bill will keep on increasing. In my humble view, we can avert huge import bills by switching over to alternative energy. Our political leadership have to be above board and have to take firm decisions in this regard. Entrepreneurial solutions need to be searched in this regard as well. Public-private partnerships can also promote alternative energy means. Determination to follow the existing energy policies by the stakeholders may also help in adopting alternative energy drives. The protection and safety of the workforce provided by the respective foreign investors for their projects have to be ensured/improved by the security apparatus to attract more investment. Lastly, Pakistan has to enforce all possible measures to ensure political stability in the country. It will engender trust among the desirous investors and related stakeholders.
PAGE: How do you view the government policies supporting the alternative energy sector?
Muhammad Khalid: All government yester policies like National Power Policy 2013, Power Generating Policy 2015 and Alternative and Renewable Policy 2019 fully support the alternative energy sector. Pakistan is very keen and is actively pursuing renewable energy investments at a mega scale. Pakistan has set a target to reduce its greenhouse gas emissions by 50% by 2030. Pakistan desires to increase renewable energy generation to 20% by 2025. The scope of the existing energy policy covers almost all sources of renewable/alternative energy like biogas, biomass, energy from waste, geothermal, synthetic gas, solar and wind. I see a very bright future for alternative energy adoption in Pakistan.