K-Electric (KE) has called upon startups and educational institutions to devise solutions to Pakistan’s ongoing energy problems. KE encourages innovators to create new ideas and technologies to help meet the growing electricity demand. This initiative is part of a broader push to make the energy sector more sustainable, which experts believe should focus on developing systems that can adapt to the changing needs of society, the economy, and the environment.
Pakistan has long relied on imported fuel, equipment, and expertise to meet its energy needs, spending over $25 billion yearly on energy imports. This makes up nearly 30% of the country’s total import bill, leaving Pakistan vulnerable to global market fluctuations and political conflicts.
Experts recommend that Pakistan work towards localizing its energy sector by developing its own industries, using local resources, and building up domestic expertise. The Alternative Energy Development Board (AEDB) has estimated that if Pakistan increases its focus on renewable energy, it could create more than 100,000 jobs by 2030.
Innovation will play an important part in making this transition possible. New technologies like smart grids, artificial intelligence, and battery storage are already transforming the global energy industry. For Pakistan, adopting these innovations could modernize its energy grid, which currently loses around 17% of energy due to inefficiencies.
One example of promoting local innovation is K-Electric’s Energy Progress and Innovation Challenge (EPIC) 2025. This challenge is designed to tackle problems such as electricity theft, which costs the energy sector around Rs590 billion annually. It also seeks to develop solutions like tamper-proof loadshedding systems and AI-driven forecasting of electricity demand. The competition offers cash prizes and mentorship to help bring these ideas to life.
However, Pakistan faces significant challenges in this transition, especially regarding investment in research and development. Currently, the country spends less than 0.3% of its GDP on R&D, limiting innovation and successful local project growth.
Despite having a huge potential for renewable energy, such as a solar capacity of 2.9 million megawatts annually, Pakistan struggles to make full use of it. To overcome these challenges, experts say Pakistan needs better policies, more funding for R&D, and greater collaboration between universities, businesses, and the government.
A skilled workforce is another key factor in making this shift successful. Universities and training institutes must update their programs to reflect the latest energy technologies. By focusing on local innovation, as countries such as China, India, and Brazil have done, Pakistan can reduce its dependence on foreign energy sources, boost its economy, and promote environmental sustainability. EPIC 2025 shows that with the right investments and partnerships, Pakistan can harness local talent to create meaningful and lasting changes in its energy sector.
