An Overview of the Current Energy Situation of Pakistan and the Way Forward towards Green Energy Implementation

Abstract

Pakistan has been facing energy crises for more than a decade as a result of its reliance on imported fossil fuels, circular debt, political instability, and absurd energy policies. However, the country has abundant renewable energy resources which, if harnessed, may help to effectively cope with ever-increasing energy demand. This review study investigates the country’s economic and energy situations, energy crises, and energy sector performance. A critical analysis of studies conducted on Pakistan’s energy planning since its independence in 1947 is, and policies announced to date are assessed. This review reveals that the economic situation of the country has remained severely stressed, and energy sector performance has been compromised over the years for various underlying reasons. The energy policy narrative in the early decades of the post-independence period focused on water resource management, whereas energy concerns were only realized in the late 1960s as demand grew. The first-ever energy and power planning study in Pakistan was conducted in 1967, and since then, various studies have been conducted to support the medium-term development plans of the government. These planning studies inspired further development, and in 1994, the first-ever electricity-focused power policy was announced by the government in response to industrial growth and subsequent electricity demand. However, this and subsequent policies were fossil-fuel-centric until 2006, when the government announced the first-ever renewable energy policy. This 2006 policy focused on increasing renewable energy penetration in the overall energy mix by setting specific targets. However, these targets have rarely been accomplished as a result of a lack of an effective planning paradigm, as most of studies have been conducted without sound demand forecasting and without considering renewable energy’s potential to meet growing demand. As such, planning efforts based on proven methodologies/modeling tools and the undertaking of demand forecasts and renewable energy assessments are inevitable for countries such as Pakistan. Therefore, we suggest that sectoral energy demand forecasting, estimation of renewable energy potential with end use, and modeling of optimal penetration of renewable energy using energy modeling tools will be helpful to develop sustainable energy policies in Pakistan to eradicate the energy crisis.