Renewable Energy in Pakistan: CSS Solved Answer

Exam question: CSS 2021, Q5: Discuss the significance of renewable energy resources for Pakistan.

CSS 2017, Q7: Explore the option of alternative energy resources to overcome energy crisis in Pakistan. (One answer covers both: for 2021, expand Section 4 on significance; for 2017, expand Sections 3 and 6 on options and measures.)

Syllabus topic: Topic XX of the CSS Pakistan Affairs syllabus.

Short answer

Outline for quick revision

Introduction
Why Pakistan Needs Alternatives
Options for Alternative and Renewable Energy: Solar energy; Wind energy; Hydropower; Biomass and waste-to-energy; Nuclear energy; Domestic coal and others
Significance of Renewable Energy for Pakistan: Energy security; Saving foreign exchange; Cheaper electricity; Access for remote areas; Jobs and industry
Obstacles: Grid and capacity payments; Policy inconsistency; Intermittency and storage; Finance and security
Measures to Use Renewables to Overcome the Crisis
Conclusion

Reference colours:
Quotation / documentPersonality / historySyllabus bookCurrent referenceOfficial report / policy

1. Introduction

Pakistan’s energy crisis, first of shortage, now of affordability, is closely tied to its dependence on imported oil, gas and coal, which drain foreign exchange and expose consumers to global price shocks. Alternative energy means sources other than conventional imported fossil fuels; renewable energy, solar, wind, hydro, biomass and geothermal, is the most important part of it.

Pakistan is rich in these resources but has used only a fraction of them. This answer explores the options, explains their significance and identifies the obstacles. Its argument is that renewable energy is Pakistan’s most realistic path to cheap, secure and clean energy, but only if the grid, policy and finance are made ready for it.

2. Why Pakistan Needs Alternatives

A large share of Pakistan’s electricity still comes from imported fuel, making tariffs hostage to global prices and the exchange rate, as the Middle East war of 2026 showed again. Circular debt and capacity payments have made grid power among the most expensive in the region, while climate change threatens both hydropower and the economy.

Current reference: Energy-sector circular debt stood at about Rs 5.29 trillion at the end of June 2026, Rs 3.61 trillion in gas and Rs 1.68 trillion in power.

3. Options for Alternative and Renewable Energy

Solar energy

Pakistan receives strong sunshine for most of the year, especially in Balochistan, Sindh and southern Punjab. Large solar parks such as the Quaid-e-Azam Solar Park in Bahawalpur and, above all, rooftop solar in homes, businesses and tube-wells have expanded rapidly.

Current reference: Pakistan’s solar boom: households and businesses imported about 45 GW of mostly Chinese solar panels over five or six years, roughly equal to the whole grid’s capacity, and grid demand fell by 4-5% in a year (Yale Environment 360, July 2025).

Wind energy

The Gharo-Keti Bandar wind corridor in Sindh has a large estimated potential; dozens of wind farms in Jhimpir already feed the grid. Wind blows strongly in the summer months when demand is highest.

Hydropower

Pakistan’s hydropower potential is estimated at about 60,000 MW, of which only a fraction has been developed. Large and small hydro projects provide cheap, clean electricity and also store water.

Current reference: Pakistan’s first major new dams since Tarbela (1976) are under construction: Mohmand (800 MW) and Dasu (4,320 MW) are due around 2026-27, while Diamer-Bhasha (about 8 MAF of storage, 4,500 MW), contracted in May 2020 at Rs 442 billion, is not expected before the end of the decade. The 2018 dam fund launched by the Chief Justice raised only about Rs 10 billion.

Biomass and waste-to-energy

Sugar mills generate power from bagasse, and agricultural waste, animal dung (biogas) and municipal waste can generate electricity and cooking gas, especially in rural areas.

Nuclear energy

Though not renewable, nuclear power is a low-carbon alternative; plants at Chashma and Karachi (K-2 and K-3, 1,100 MW each) provide reliable base-load power.

Domestic coal and others

Thar coal reduces import dependence but is not clean; geothermal and green hydrogen are emerging options for the future.

4. Significance of Renewable Energy for Pakistan

Energy security

Domestic sunlight, wind and water cannot be blocked by global crises; they reduce Pakistan’s exposure to oil and LNG price shocks and supply disruptions such as the closure of the Strait of Hormuz in 2026.

Saving foreign exchange

Every unit of electricity from solar, wind or hydro replaces imported fuel, easing the balance of payments and reducing pressure on the rupee.

Current reference: Pakistan’s current $7 billion Extended Fund Facility (37 months, approved September 2024), with a $1.4 billion climate Resilience and Sustainability Facility, is its latest of more than twenty IMF programmes since 1958. On 8 October 2026 the IMF reached a staff-level agreement on the fourth review, unlocking about $1.2 billion (total disbursed about $5.7 billion), on conditions including a primary surplus of 2% of GDP, tax reform, phasing out fuel subsidies, timely energy tariff adjustments, privatisation, a tight monetary policy and a flexible exchange rate.

Cheaper electricity

New solar and wind projects now produce electricity at a lower cost than imported-fuel plants, and have no fuel costs, so they can help bring tariffs down over time.

Pakistan’s alternative energy mix

Renewable: solar, wind, hydro, biomass
Low-carbon: nuclear
Domestic fossil: Thar coal, local gas

Renewables are central to Pakistan’s pledge under the Paris Agreement, and they make Pakistan eligible for climate finance.

Official report / policy: In its NDC 3.0 (September 2025) under the Paris Agreement, Pakistan pledged to cut greenhouse gas emissions by 50% below business-as-usual by 2035, 17% unconditionally and 33% conditional on about $565 billion of international finance.

Access for remote areas

Off-grid solar and micro-hydro can bring electricity to villages in Balochistan, Gilgit-Baltistan and the former FATA that the national grid does not reach.

Jobs and industry

Installing, maintaining and eventually manufacturing solar and wind equipment can create jobs for young people.

Syllabus book: Robert M. Hathaway and Michael Kugelman (eds.), Powering Pakistan (2009), argue that Pakistan’s energy crisis is mainly a crisis of governance, pricing and planning rather than a lack of resources.

5. Obstacles

Grid and capacity payments

The grid was built for large central plants; rapid rooftop solar has reduced grid demand, raising costs for remaining consumers because capacity payments must still be paid.

Current reference: With rooftop solar booming, NEPRA replaced net metering with net billing under the Prosumer Regulations 2026 (February 2026): new solar users now sell surplus power to the grid at about Rs 11 per unit while buying at much higher tariffs, a change the government defended as protecting non-solar consumers but critics called a blow to clean energy.

Policy inconsistency

Frequent changes in tariffs, incentives and net-metering rules have discouraged investors; the 2019 policy targets have not been met.

Official report / policy: The Alternative and Renewable Energy Policy 2019 set targets of 20% of generation from renewable sources (excluding large hydro) by 2025 and 30% by 2030; the revised IGCEP 2025-2035 plans about 13,200 MW of new solar, 11,500 MW of wind and 21,400 MW of hydropower by 2035.

Intermittency and storage

Solar and wind vary with weather and time of day, requiring batteries, hydro storage and a flexible grid.

Finance and security

High interest rates, currency risk and insecurity in some areas raise the cost of projects.

6. Measures to Use Renewables to Overcome the Crisis

Pakistan should follow a single integrated energy plan in which all new capacity is chosen by least cost, which now favours renewables; invest in transmission, battery storage and a smart grid; set stable, long-term rules for rooftop and utility solar; use competitive auctions for new wind and solar projects; complete hydropower projects; develop local manufacturing of solar and battery components; and use climate finance and green bonds to fund the transition.

Syllabus book: Ziad Alahdad, Pakistan’s Energy Sector: From Crisis to Crisis, Breaking the Chain (PIDE, 2012), attributes recurring energy crises to delays, weak implementation and reform reversals, and calls for Integrated Energy Planning.

7. Conclusion

Pakistan has abundant sun, wind, water and biomass, and the solar boom has shown how quickly citizens will adopt cheaper, cleaner energy. Renewable and alternative energy can give Pakistan energy security, save foreign exchange, lower tariffs, meet its climate pledges and bring power to remote areas. The obstacles, an old grid, costly capacity payments, inconsistent policy and limited finance, are problems of governance, not resources. With integrated planning, a modern grid and stable policy, renewables can turn Pakistan’s energy crisis into an energy opportunity.

Renewable Energy in Pakistan: CSS 2021 and 2017 Solved Answer