Solar growth in South Asia has cut fuel imports for power but deeper reductions need electrification and regional grids

Solar growth in South Asia is reducing the power sector's exposure to global fossil fuel price shocks, though the pace varies by country. In Pakistan, rooftop solar generation grew from 7.7 TWh in 2022 to 36.6 TWh in 2025, saving an estimated USD 12 billion in LNG imports. In contrast, Bangladesh increased its reliance on coal, with generation rising from 7.87 TWh to 30.06 TWh between 2022 and 2025. While the power sector is diversifying, the region remains highly dependent on imported oil and gas for transport and industry. The report suggests that electrifying these end-uses and expanding regional electricity trade—with India as a hub—are essential to further cutting import costs and improving energy security.

• Solar power expansion has reduced the power sector's vulnerability to global fossil fuel price shocks in South Asia, though the impact varies by country. In India, solar growth was driven by long-term policy and cost competitiveness rather than the 2022 energy crisis, and it has not significantly displaced coal because most Indian coal is produced domestically.
• Pakistan experienced a rapid surge in rooftop solar adoption between 2022 and 2025, driven by high electricity tariffs and the availability of low-cost Chinese panels. Solar generation rose from 7.7 TWh to 36.6 TWh, which saved an estimated USD 12 billion in LNG imports.
• Between 2022 and 2025, Bangladesh increased its reliance on coal to cushion the impact of fuel import costs, with coal generation rising from 7.87 TWh to 30.06 TWh and its share of the power mix increasing from 9.8% to 33.8%.
• South Asia remains heavily dependent on imported fossil fuels for sectors outside of power, particularly transport and industry. Oil import dependence is extremely high, with domestic production meeting only about 10% of demand in India and 15% in Pakistan.
• Regional electricity interconnection, with India acting as a hub, can reduce fossil fuel dependence. India currently imports 4–9 TWh annually from Bhutan and exports approximately 8–9 TWh annually to Bangladesh, meeting 7–8% of Bangladesh's total demand.

APA

Rodrigues, N., & Ewen, M. (2026). Solar growth in South Asia has cut fuel imports for power but deeper reductions need electrification and regional grids. Ember. https://ember-energy.org/app/uploads/2026/03/Solar-growth-in-South-Asia-has-cut-fuel-imports-for-power.pdf

Chicago

Rodrigues, Neshwin, and Matt Ewen. Solar growth in South Asia has cut fuel imports for power but deeper reductions need electrification and regional grids. Ember, 2026. https://ember-energy.org/app/uploads/2026/03/Solar-growth-in-South-Asia-has-cut-fuel-imports-for-power.pdf.

Wikipedia

{{cite report |last1=Rodrigues |first1=Neshwin |last2=Ewen |first2=Matt |title=Solar growth in South Asia has cut fuel imports for power but deeper reductions need electrification and regional grids |publisher=Ember |date=19 March 2026 |url=https://ember-energy.org/app/uploads/2026/03/Solar-growth-in-South-Asia-has-cut-fuel-imports-for-power.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rodrigues2026solar, author = {Rodrigues, Neshwin and Ewen, Matt}, title = {{Solar growth in South Asia has cut fuel imports for power but deeper reductions need electrification and regional grids}}, institution = {Ember}, year = {2026}, month = mar, url = {https://ember-energy.org/app/uploads/2026/03/Solar-growth-in-South-Asia-has-cut-fuel-imports-for-power.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }