Arsalan Ali

Incorporating renewable energy policies into the economic policies can help tackle Pakistan's energy and environmental challenges through incentives for the renewable energy sector and long-term power-generation plans. This was the consensus of experts in a roundtable discussion on "Decarbonization of Energy Sector; Options for Pakistan," organized by the Institute of Regional Studies (IRS).

Dr. Khalid Waleed, an energy expert from the Sustainable Development Policy Institute (SDPI), stressed that Pakistan is facing an economic, energy and environmental crisis needing integration of renewable energy policies into the economic policies and incentivizing the renewable energy sector for possible solutions.

He also suggested sector coupling, specifically power-to-gas, as a way to convert renewable energy into hydrogen to solve the environmental issues. However, the high cost of renewable energy and lack of incentives for the private sector still pose challenges. Syed Aqeel Hussain Jafri, Director of Policy and International Cooperation at the Alternative Energy Development Board (AEDB), said the adoption of clean energy is a global trend. Many countries are transitioning to clean energy while keeping climate change in mind.

He said Pakistan's energy situation is unique as it shifted from hydroelectric power to fossil fuels in 1990s and there is a lack of planning for long-term power generation. He emphasized that Pakistan needs long-term plans for power generation like the global energy sector. He said Pakistan had the potential to surpass its current target of 30% share of renewables by 2030, with wind and solar energy contributing up to 50% of the total renewable energy mix.

Jafri said the existing energy infrastructure has been predominantly built on fossil fuels over the past few decades, posing significant challenges to integrating renewable energy beyond a certain level. To address this challenge, he said the government must undertake systemic changes, including the adoption of updated grid management and energy forecasting methodologies.

‘’With numerous financing options available under various funds and philanthropic organizations committed to mitigating climate change, Pakistan can take advantage of these resources to transform its energy infrastructure and shift towards sustainable, renewable energy sources,’’ he added. He highlighted the importance of decarbonizing the energy sector, which requires significant changes in lifestyle and policy at the local, state, and federal levels.

Mr. Song, Executive Deputy Director of Port Qasim Electric Power Company (Private) Limited, spoke about the electrification of off-grid areas. Despite the government's plans for electrification, limited funding remains a significant obstacle, he added. He acknowledged the economic challenges that hindered the electrification process and suggested combining the small renewable projects with gas turbine generators and microgrids to address this issue. Song emphasised the importance of a smart metering system and an advanced payment strategy to ensure timely payments for electricity consumption, and recommended subsidies for farmers in off-grid areas to encourage them to pay a low tariff for electricity consumption.

Credit: Independent News Pakistan-WealthPk