Securing Pakistan’s energy needs
In April of this year, the UN General Assembly hosted the Sustainability Week, a global stock-take on SDG 7, ‘Affordable and Clean Energy’.
The result was unambiguous: Persistent gaps remain, with over 600 million people still without access to electricity, and a staggering two billion people simply in need of clean cooking solutions.
Countries need to rapidly accelerate transitions to cleaner, renewable energy, tripling energy capacity globally, doubling the global annual average rate of energy efficiency by 2030, and scaling global technology investment and capacity in vulnerable countries through public-private partnerships.
In November, the global community will convene at COP29 in Baku, Azerbaijan, to tackle the pressing challenges of climate change. Azerbaijan has announced a green energy push to place a levy on oil, gas, and coal production in order to fund climate action in emerging economies.
It has also unveiled plans in partnership with the UAE for large-scale renewable energy projects, setting the tone for the conference.
Pakistan also has a great opportunity to fully join these global trends, and position itself strongly for critically required energy security. The country’s long-standing energy crisis has impeded economic growth, fueled unemployment, and continues to undermine Pakistan’s sustainable development ambitions.
More than 40 million Pakistanis remain without electricity, and half the population lacks access to clean cooking facilities that use cleaner fuels or modern stoves.
Frequent power outages and inefficient energy infrastructure are chronic issues. According to the National Electric Power Regulatory Authority (Nepra), a significant contributor to high electricity costs is the operation of old plants whose energy efficiency can be as low as 30%.
According to the World Bank, enhancing energy efficiency could save Pakistan up to $2 billion.
In 2021-2022, renewable energy sources only accounted for 6.1% of the country’s total installed capacity. In addition to that, Pakistan imports nearly a third of its energy in the form of oil, coal and liquefied natural gas (LNG).
As a result, the higher energy costs from imports drive up prices across the economy, causing inflation, depleting foreign reserves, and increasing living costs. Pakistan’s ability to break this cycle of dependence on energy imports would require a pivot in its energy policy towards sustainable domestic sources.
Pakistan can improve its energy security by diversifying energy sources, improving energy productivity, and upgrading the infrastructure responsible for producing, transporting and distributing energy. Prioritising renewable energy sources is fundamental to this choice: Investing in solar, wind, and hydropower will reduce dependence on imported fossil fuels and provide a more sustainable energy supply.
Fortunately, Pakistan has significant potential for solar power to secure energy gaps. Utilising less than 1% of the country’s area for solar PV would meet its current electricity demand. Wind energy potential is also substantial, conducive to generating over 50,000 megawatts of power.
The government has committed to increasing the share of renewable energy to 30% by 2030 in its Alternative and Renewable Energy Policy 2019. Policies that incentivise the adoption of renewable energy sources and energy efficiency are critical for closing the gaps in Pakistan’s energy puzzle, and also signaling certainty to investors for investing in long-term energy projects.
UNDP is working with its partners to deliver innovative solutions to address energy security challenges in Pakistan. The UNDP SDG Investments and Climate Financing Facility is partnering with financial institutions and investors to mobilise blended finance solutions for promoting sustainable energy projects across the country.
We are also collaborating with the Ministry of Climate Change and Environmental Coordination and the National Energy Efficiency and Conservation Authority (NEECA) on capacity building and policies that promote sustainable energy practices. Preparation of a resource mobilisation strategy along with pipeline development of bankable energy projects is also underway for the Ministry of Energy to access global climate financing for Pakistan.
Ultimately, achieving energy security in Pakistan is not just about meeting current needs but also about laying the groundwork for a resilient energy future. A sustainable ‘powering’ strategy for Pakistan will also empower its communities, ensuring that we leave no one behind.
The writer is the Resident Representative, UNDP Pakistan