Abstract

The Institute for Energy Economics and Financial Analysis (IEEFA) has modelled an alternative path forward for Pakistan’s electricity system that is outlined in a new report being published in early December. This alternative embraces increasingly cheap renewable energy technology – something that can be achieved whilst still serving the nation’s growing electricity demand. Via a significant increase in wind and solar power investment, Pakistan can diversify its electricity generation sources whilst reducing reliance on expensive imported fossil fuels. The result will be a more cost-effective and secure electricity system.

The rate of renewable energy cost reductions around the globe has been astonishing. Solar and wind energy technology is increasingly outclassing fossil-fuelled, hydro and nuclear power generation in all aspects, including financial. It no longer makes financial sense for developing countries to base their electricity generation capacity expansions on such out-dated technology. Pakistan has reached a turning point with renewable energy tariffs now lower than those for coal- and Liquefied Natural Gas (LNG)-fired power generation. With Pakistan needing to expand generation quickly, renewable energy is in a much better place to meet growing demand than hydro or nuclear as wind and solar projects can be built in a significantly shorter timeframe. This presentation will discuss the key findings of the new report which demonstrates how Pakistan can develop its electricity system with the most modern, renewable technology in line with similar developments now occurring around the world.