Pakistan Becomes World’s Sixth Largest Solar Market: WEF Report

According to a World Economic Forum (WEF) report, Pakistan has emerged as the sixth largest solar market globally, highlighting the country’s rapid adoption of solar energy as a model for other emerging markets. Puts This shift is driven by declining solar panel prices, rising electricity rates, and a pressing need to address our energy crisis through renewable resources.

The report highlights that Pakistan’s energy sector has long been grappling with challenges such as revolving debts, power theft, and transmission losses, leading to frequent blackouts and skyrocketing electricity prices. are touching However, with more than nine hours of sunlight per day in most areas, the country is well positioned to take advantage of solar energy. The World Bank estimates that only 0.071 percent of Pakistan’s area can generate enough solar photovoltaic (PV) electricity to meet its electricity needs.

Currently, only 5.4% of Pakistan’s installed electricity generation capacity of 39,772 MW comes from renewable sources such as wind, solar and biomass, while fossil fuels still account for 63% of the energy mix. Hydropower accounts for 25%.

The WEF report attributes Pakistan’s rapid adoption of solar energy to external factors such as the overproduction of solar panels by China, which has significantly reduced costs. This makes Pakistan the third largest importer of Chinese solar exports.

“The industrial, agricultural and residential sectors have adopted solar energy,” the report said, with Chinese solar module imports reaching 13 gigawatts (GW) in the first half of 2024 and 22 gigawatts by the end of the year. is predicted.

Inconsistent energy policies of government providers and inefficiencies in production, pricing and regulation have also contributed to accelerating the transition to solar energy. The report revealed that grid electricity demand fell by more than 10 percent in the last financial year as rising tariffs pushed consumers towards self-generation through solar power.

To further promote the adoption of renewable energy, the WEF recommended policies such as offering credits for solar systems in off-grid areas and revising consumer categories to encourage widespread use.

“Pakistan’s journey highlights the importance of balancing policy innovation with market adaptation to achieve sustainable and equitable energy solutions,” the report concluded, citing similar changes in other emerging markets. Emphasis was placed on the country’s ability to influence