Pakistan’s Renewable Energy Potential
Transmission losses pose threats to the energy sector as the losses reach 2.62% of the total delivered units, thereby costing PKR 72 billion.
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Pakistan has a theoretical solar Photo Voltaic potential of producing 5.341 kWh/m2. According to the World Bank, utilizing merely 0.07% of the country’s total potential area for generating solar power will be enough to fulfill the rising demand. Since Pakistan has pledged to include renewable energy resources to make 60% of the energy mix by 2030, we should expect steps to be taken in the right direction.
The country also has immense wind power potential, especially in the vast coastal areas. As Pakistan is restricting coal-powered plants, the country’s needs must be met through variable renewable energy resources. China is leading the technological support for Pakistan in this regard in the garb of its Green CPEC initiative. The country aims to enable the availability of 2,500 MW through hydropower projects. But the case isn’t as easy as it seems. A bigger infrastructural hurdle, i.e transmission lines, may inhibit this move.
In 2021, NTDC reported transmission losses of 3,696 GWh. Distribution and transmission issues pertain to distribution companies, that are heavily regulated by the government. Pakistan has already received a loan of USD 195 million from the World Bank, intending to improve the administration and infrastructure of the sector.
The distribution issues coupled with circular debt and pending receivables lessen the potential of Pakistan’s energy production. In addition to investment in energy production, efficient distribution of energy must be ensured in the face of an imminent climate crisis.
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