Renewable energy solutions for Punjab’s industrial sector: Evaluating the NAMA approach in Sialkot City, Pakistan

This case study evaluates the potential of using a Nationally Appropriate Mitigation Action (NAMA) to implement renewable energy solutions, specifically photovoltaic (PV) panels, for small and medium enterprises (SMEs) in Sialkot, Pakistan. The project, supported by the Climate and Development Knowledge Network (CDKN), aimed to address severe energy shortages and high electricity costs in Sialkot's industrial sector.

• Sialkot's industrial sector faces a severe energy crisis characterized by load shedding of up to six hours daily and electricity price increases of 230% since 2007. This has resulted in more than 10% revenue loss for an industry that exports over US$1.6 billion annually, with approximately 11,000 SMEs operating at only 60% capacity.
• The project identified that photovoltaic (PV) panels are a superior alternative to diesel generators for Sialkot's industry. Diesel-generated electricity is 50% more expensive and 55% more carbon intensive than grid electricity, whereas PV panels produce no greenhouse gases and have no fuel costs.
• A techno-economic assessment indicates that implementing PV panels for industry in Sialkot could result in average annual electricity cost savings of US$27,400 per company and mitigate up to 377,000 tons of carbon dioxide.
• The study highlights a gap in government capacity and engagement. The Ministry of Climate Change lacks the experience to manage the developmental co-benefits of renewable energy, and there is a tension where industry views the government as responsible for the energy crisis, while the government views industry as better equipped to solve it.
• Due to limited government engagement, the project suggests that PV installation in Sialkot may proceed through unilateral actions led by the Sialkot Chamber of Commerce and Industry and other subnational industrial support.
• Key lessons for practitioners include the importance of engaging with local chambers of commerce due to their significant convening power, sharing preliminary data to spark stakeholder debate, and researching specific local financial institutions to unlock investment dialogues.

APA

Osornio, J. P., & Bosquet, M. (2016). Renewable energy solutions for Punjab’s industrial sector: Evaluating the NAMA approach in Sialkot City, Pakistan. Climate and Development Knowledge Network. http://cdkn.org/wp-content/uploads/2016/06/CDKN-Sialkot-Pakistan-IS-WEB.pdf

Chicago

Osornio, Juan Pablo, and Michelle Bosquet. Renewable energy solutions for Punjab’s industrial sector: Evaluating the NAMA approach in Sialkot City, Pakistan. Climate and Development Knowledge Network, 2016. http://cdkn.org/wp-content/uploads/2016/06/CDKN-Sialkot-Pakistan-IS-WEB.pdf.

Wikipedia

{{cite report |last1=Osornio |first1=Juan Pablo |last2=Bosquet |first2=Michelle |title=Renewable energy solutions for Punjab’s industrial sector: Evaluating the NAMA approach in Sialkot City, Pakistan |publisher=Climate and Development Knowledge Network |date=2016 |url=http://cdkn.org/wp-content/uploads/2016/06/CDKN-Sialkot-Pakistan-IS-WEB.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{osornio2016renewable, author = {Osornio, Juan Pablo and Bosquet, Michelle}, title = {{Renewable energy solutions for Punjab’s industrial sector: Evaluating the NAMA approach in Sialkot City, Pakistan}}, institution = {Climate and Development Knowledge Network}, year = {2016}, url = {http://cdkn.org/wp-content/uploads/2016/06/CDKN-Sialkot-Pakistan-IS-WEB.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }