In Pakistan, growing up in a less privileged household often meant navigating life with the shadow of loadshedding looming large. For many, the lack of consistent electricity was a reality that shaped daily life, making the most mundane tasks—like ironing a kameez—an exercise in time management, with constant anxiety over the timing of power cuts. While some view electricity as a staple, integral to their routines, others have had to learn to adapt, organizing their days around the whims of the power supply.
Today, while the electricity situation has improved in some areas, many people still face a stark reality: hefty bills for electricity can consume a significant portion of their income, forcing them to allocate their next paycheck just to maintain a semblance of comfort in their daily lives. Those with the means are increasingly turning to solar energy as a viable solution, investing hundreds of thousands of rupees upfront. Insights from other countries, particularly a case study of South Africa, provide a cautionary tale about the potential trajectory of Pakistan’s power sector.
South Africa’s Eskom utility epitomizes the challenges of managing an electricity supply that is both costly and unreliable. Accusations of mismanagement and corruption have plagued Eskom, leading to skyrocketing electricity prices that have driven consumers toward solar alternatives. As the price of electricity has surged, many South Africans have turned to solar energy, resulting in significant growth in photovoltaic (PV) installations. This trend has put Eskom in a precarious position, caught in a “utility death spiral” where rising costs drive customers away, leading to further financial strain.
Pakistan’s power utilities are facing similar challenges. Data shows a steady rise in electricity costs, with projections suggesting rates could reach Rs. 50-60 per kilowatt-hour. This situation mirrors South Africa’s struggles, where increasing electricity prices have led to declining sales and a shift toward alternative energy sources. The influx of solar technology into Pakistan, bolstered by a significant increase in imports, signals a transformative shift in energy consumption.
As consumers increasingly opt for solar solutions, traditional power utilities may find themselves unable to adapt quickly enough. The reliance on outdated business models and a lack of innovation could lead to a decline in their customer base. This scenario poses serious questions about the future of Pakistan’s energy sector, particularly as government efforts to renegotiate power purchase agreements may only offer temporary relief rather than a long-term solution.
In this evolving landscape, the rise of solar energy not only represents an economic opportunity but also a necessity for a country grappling with energy shortages. As Pakistan navigates these changes, the focus must be on sustainable solutions that empower consumers and ensure reliable electricity access for all, regardless of socioeconomic status. The challenge lies in balancing immediate needs with future energy sustainability to create a resilient power sector that can support the nation’s growth.
