How Pakistan’s energy revolution can power affordable, reliable electricity for all

Pakistan is seeing a surge in rooftop solar and battery storage to combat power shortages and high costs, importing 17 GW of solar PV and 1.25 GWh of lithium-ion batteries in 2024. While this improves energy sovereignty and reduces reliance on imported fuels, it creates a grid challenge where fixed costs and 'take-or-pay' capacity payments—exceeding $7 billion in 2024—fall on a shrinking pool of grid-dependent users. To ensure an inclusive transition, the document suggests blended finance via institutions like the ADB and GCF, and recommends that other emerging economies integrate distributed energy, repurpose legacy thermal assets, and align transport electrification with solar output.

• Pakistan is experiencing a significant shift toward decentralized energy, importing 17 GW of solar photovoltaic (PV) and approximately 1.25 GWh of lithium-ion battery packs in 2024. If current trends persist, battery imports may reach 8.75 GWh by 2030, which would be sufficient to cover more than 25% of peak demand.
• The rapid adoption of off-grid solutions is creating a financial imbalance for the national grid. As 'prosumers' leave the grid, fixed maintenance costs are spread across fewer users, while 'take-or-pay' agreements for underutilized coal and gas plants led to capacity payments exceeding PKR2 trillion (approximately $7 billion) in 2024.
• To prevent a widening energy divide, the document advocates for blended finance and low-interest credit to support underserved users. An example is the Pakistan Distributed Solar Project, which utilizes a Green Climate Fund (GCF) guarantee to finance 43 MW of solar PV for households, agribusinesses, and SMEs through the State Bank of Pakistan’s renewable energy scheme.
• The document provides five strategic recommendations for other emerging economies: ensuring an inclusive transition for low-income users, integrating distributed energy into the grid, repurposing legacy thermal plants as backup/stabilizers, aligning EV charging with solar output, and treating solar-plus-batteries as a primary source of capacity growth.

APA

Forum, C. B. S. M. W. E. (2025). How Pakistan’s energy revolution can power affordable, reliable electricity for all. World Economic Forum. https://www.weforum.org/stories/energy-transition/pakistan-energy-affordable-reliable-electricity/

Chicago

Forum, Charles Bourgault, Sarah Moin, World Economic. How Pakistan’s energy revolution can power affordable, reliable electricity for all. World Economic Forum, 2025. https://www.weforum.org/stories/energy-transition/pakistan-energy-affordable-reliable-electricity/.

Wikipedia

{{cite report |last1=Forum |first1=Charles Bourgault, Sarah Moin, World Economic |title=How Pakistan’s energy revolution can power affordable, reliable electricity for all |publisher=World Economic Forum |date=19 August 2025 |url=https://www.weforum.org/stories/energy-transition/pakistan-energy-affordable-reliable-electricity/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forum2025how, author = {Forum, Charles Bourgault, Sarah Moin, World Economic}, title = {{How Pakistan’s energy revolution can power affordable, reliable electricity for all}}, institution = {World Economic Forum}, year = {2025}, month = aug, url = {https://www.weforum.org/stories/energy-transition/pakistan-energy-affordable-reliable-electricity/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }