Pakistan’s National Electricity Policy 2021 commits to developing a sustainable renewable energy market, progressively increasing its share in power generation based on the Indicative Generation Capacity Expansion Plan (IGCEP) and the least cost principle.
However, the latest IGCEP 2024-34, which outlines Pakistan’s energy strategy for the next decade, diverges significantly from these goals. It drastically reduces the planned contribution of cost-effective variable renewable energy (VRE) such as solar and wind, favoring instead expensive hydropower, nuclear, and imported and Thar coal-based projects. This shift is at odds with the principles of cost efficiency and sustainable energy development.
The Pakistan Renewable Energy Coalition (REC) highlights in its briefing paper, “Neglected Potential: How the latest IGCEP fails renewable energy future in Sindh and Balochistan,” that the new plan disproportionately neglects the renewable energy potential in Sindh and Balochistan. This oversight not only threatens regional economic growth but also undermines Pakistan’s commitments to renewable energy targets set by the Alternate and Renewable Energy (ARE) Policy, 2019.
Furthermore, the REC emphasizes that the reduced focus on VRE integration sends negative signals to investors in the renewables sector, hindering its development and violating national electricity policy objectives. Despite substantial theoretical wind and solar potential in Sindh and Balochistan, the new IGCEP fails to optimize this capacity effectively.
A recalibration of the IGCEP is essential to harness Pakistan’s full renewable energy potential, foster regional development, and ensure a balanced approach to energy security and economic growth.
