Solarisation challenge

Letter March 15, 2025
Solarisation challenge

Pakistan has been grappling with numerous challenges since its inception. Bad governance, environmental issues and a struggling economy are clear indicators of this crisis. Soaring inflation and rising electricity costs have further worsened the situation for the public. As a result, many have started shifting to solar energy to ease their financial burden. However, Independent Power Producers (IPPs) are actively discouraging this transition.
IPPs, numbering in a couple of dozens, have played a significant role in damaging the country’s economy. These entities have deep-rooted influence, allowing them to accumulate excessive profits. For instance, while the actual cost of electricity in Pakistan is approximately 7.5 rupees per unit, consumers end up paying over 50 rupees per unit. The additional charges, including capacity payments and taxes, directly benefit the IPPs. According to recent reports, the government pays billions of dollars annually to these producers, further straining the national economy. Additionally, the power division has also contributed to inefficiencies and mismanagement in this sector.
Solarisation could be a game-changer for Pakistan, especially considering the country’s vulnerability to climate change. Widespread adoption of solar energy would not only provide a sustainable and cost-effective solution but also contribute to a greener environment with cleaner air. Therefore, it is crucial to encourage solarisation in the country. Most importantly, the government should consider acquiring these IPPs to ensure a more stable and robust economic future.
Yaqoob Baloch
Islamabad