FLASHNEWS:

Federal Minister Outlines Ambitious Clean Energy Roadmap Amid IMF Constraints

Islamabad: Federal Minister for Power Awais Leghari on Tuesday announced a comprehensive plan to increase the share of clean electricity in Pakistan's power mix to 90 percent by 2035. He also highlighted the challenges posed by the country's IMF programme, which restricts the introduction of a market-based electricity tariff system that could potentially lower power costs and facilitate the clean energy transition.

According to Union of Small and Medium Enterprises, during the Solar, Storage and Flexibility 2026 Conference, Leghari emphasized a strategic shift from a generation-first approach to focusing on grid flexibility, energy sovereignty, and local industry development. This shift aims to shield consumers from international fuel price fluctuations and leverage Pakistan's burgeoning rooftop solar sector.

Leghari noted Pakistan's progress in the solar energy sector, with nearly 38 gigawatts of distributed solar capacity installed on rooftops through consumer investment. While this expansion offers opportunities, it also presents challenges, particularly in the area of storage infrastructure necessary to manage surplus solar energy during peak evening hours.

He pointed to recent disruptions in RLNG supplies as evidence of Pakistan's reliance on imported fuels, which led to load shedding despite adequate solar generation during the day. "Battery storage is not an optional add-on. It is a strategic asset for our energy sovereignty," Leghari stated.

Currently, clean energy sources such as hydropower, nuclear, wind, and solar make up approximately 55 percent of Pakistan's electricity generation. However, Leghari warned that without significant investments in battery storage, transmission infrastructure, and electricity market reforms, the country's renewable energy goals could remain unattainable.

The minister proposed a three-pronged strategy to meet these objectives: expanding battery storage systems, promoting local battery production to reduce import dependence and boost employment, and implementing regulatory reforms to ensure long-term investment stability.

During an interactive session, Leghari reiterated that restrictions under Pakistan's IMF programme hinder the government's ability to introduce a flexible, market-based electricity tariff system. Such a system would align power prices with actual generation costs at different times. The government has been in discussions with the IMF for several months about implementing a time-of-use tariff to address this issue.