Pakistan has been dealing with an energy crisis for a number of years, much like many other developing countries. The nation’s dependence on non-renewable energy sources, such as petroleum and gas, increases its susceptibility to changes in the world market and pollutes the environment. Pakistan must therefore quickly switch to clean and renewable energy sources and diversify its energy sources.
So why is Pakistan stuck in a rut of independent power producers who are charging in dollars for the energy produced. In my personal view, it is somehow connected to the International Monetary Fund. When in the 90’s, Pakistan started to avail International Monetary Fund’s (IMF) facilitation frequently, pressure was on the civilian governments to quickly solve the emerging energy crisis. For that the help of private sector was sought. independent power producers offered a quick solution in the form thermal fuel powered power plants at a fast pace.
Unfortunately, the solutions and then fast paced change of governments, has rendered the energy provision strategy of the state as impotent. Even the CPEC arrangement with China has imported coal powered plants included in it, which clearly are not geared towards sustainability of the economy. This keeps pressure on the import bill for energy needs.
Alternate energy is the right way towards sustainability and survival of the Pakistani nation. Solar and wind energy, in particular, have the potential to address Pakistan’s energy shortages. The country is blessed with high levels of sunlight throughout the year, making solar power a viable option. Similarly, wind energy can be harnessed particularly in the coastal areas of Sindh and Balochistan provinces.
There is considerable investment being carried out by foreign companies especially Chinese and European consortium’s in the wind sector, however they are at constant loggerheads with the provincial government or federal government. There are disputes of tariff rates and policies, which the government side has to rightly consider before awarding out contracts of power purchase.
Of course, a transition to a new energy mix containing the majority to alternate energy or hydro is not easy. It requires significant investments and a supportive policy framework. However, the long-term benefits of shifting to renewable energy far outweigh the initial costs. It is a step that Pakistan must take to ensure a sustainable and prosperous future for its citizens.
There is one more important aspect not to be neglected in any condition. Industry for solar manufacturing and wind manufacturing has to be established as support cluster, where ever an alternate energy project is established. The effort should be accompanied with a policy that enables smooth conversion to localization of incoming investment, in the areas of raw materials and technology transfer.
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