Grid power has become expensive, and renewable energy is the new go-to in terms of cost-effectiveness, particularly for the citizens of Pakistan. Inevitably, the country is moving toward renewable energy, particularly solar energy. With residential, industrial, and commercial sectors making solar energy a priority, the country could witness a significant shift in how power is consumed in a way that’s more cost-effective and sufficient at the same time.
While solar energy is expanding across the country, disparities are still very present. The people who can’t afford solar are still facing high costs due to getting energy from the grid. Low-middle-income households continue to face challenges as the consumers of solar energy have plentiful benefits coming in due to updated policies that let them offset or eliminate certain utility bills.
At a recent seminar heard by the Institute of Policy Studies, experts emphasized the urgent need to address these disparities. As solar continues to rise At a recent seminar by the Institute of Policy Studies, experts highlighted the urgent need to address these disparities. As solar systems increase, grid upkeep costs—including transmission and distribution—disproportionately fall on non-solar users, exacerbating economic divides. For many, rising tariffs due to inflation and energy costs lead to energy poverty, where even basic electricity becomes unaffordable.
The influx of distributed solar systems challenges Pakistan’s grid infrastructure, which is designed for centralized energy generation. Variations in energy demand, known as the “duck curve,” strain the system, requiring advanced models and technologies for grid stability.
Countries like Germany, Australia, and the U.S. have introduced reforms to ensure fair energy access. Policies like net billing, minimum monthly fees and demand charges distribute costs more equitably.
Pakistan needs immediate policy reforms to ensure an inclusive energy transition. Recommendations include revamping policies such as introducing the billing or fair buy-back rates to reflect actual grid costs. Fair Cost-Sharing Measures: Impose fixed charges and incentivize grid-stabilizing technologies. Equitable Regulatory Reforms: Set caps on incentive schemes and include exit clauses to maintain balance.
Abu Bakar, Head of Energy and Sustainability at Amreli Steels, emphasized that Pakistan’s energy transition must benefit all, not just solar adopters. Policymakers must act swiftly to protect grid-dependent consumers and ensure a sustainable, equitable energy system that supports both economic growth and environmental goals.
