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The rapid growth of rooftop solar systems is transforming Pakistan’s energy landscape

The rapid growth of rooftop solar systems is transforming Pakistan’s energy landscape and creating disparities for lower-income electricity consumers dependent on the traditional grid. Ensuring equitable energy access for all consumers is crucial to addressing this. This concern was the focal point of a session titled “Navigating the Solar Surge: Ensuring Equitable Energy Access in Pakistan’s Power Sector,” hosted by the Institute of Policy Studies (IPS), Islamabad.

The session featured insights from Khalid Rahman, IPS Chairman; Ameena Sohail, senior IPS associate and energy advocate; Abubakar Ismail, head of energy and sustainability at Amreli Steels; Muhammad Musaddiq, CEO of Siddique Renewable Energy; Asad Mahmood, renewable energy expert; and Mirza Hamid Hassan, former federal secretary for Water & Power.

Wali Farooqui, research officer IPS, presented the study and pointed out that while falling solar costs have led to its mass adoption, mostly elite consumers benefit from these savings. He noted that this shift is creating a two-tiered energy system, where those who cannot afford solar are at an increasing disadvantage, burdened with higher bills. “Those with higher-paying capabilities can shield themselves from rising electricity prices, but lower-income consumers are worse off as they are left facing a greater share of the grid costs,” Farooqui stated.

Khalid Rahman emphasized that the lack of timely amendments to net metering policies exacerbates these inequities. He called for more inclusive policy development to treat both solar adopters and grid-dependent consumers fairly. Ameena Sohail warned of the strain unchecked solar growth could place on grid operations.

Asad Mahmood highlighted the growing divide between those who can afford solar energy and those who cannot, stressing that while solar adopters benefit from significantly lower bills, many consumers face increased economic pressure. Abubakar Ismail emphasized the importance of equitable policymaking in the transition to solar energy, highlighting the challenges posed by solar intermittency. He pointed out that while renewable energy and decarbonization are universally supported, maintaining a reliable energy supply requires continuous power, even when solar generation is unavailable.

Muhammad Musaddiq expressed his concerns regarding the low penetration of solar energy in Pakistan, highlighting that power theft remains a significant challenge hindering progress in the sector. He noted the urgent need to address the environmental damage caused by fossil fuels. He emphasized that the adoption of electric vehicles (EVs) and solar energy is inevitable and will continue to rise, potentially posing challenges for existing power plants.

In his closing remarks, Mirza Hamid Hasan underscored the importance of balancing net metering consumers and those dependent on the grid. He stressed that while solar energy adoption is vital for the country’s energy future, it is equally important to ensure that the grid’s costs are fairly distributed.

The session ended with a call for stakeholder collaboration to ensure a sustainable and fair energy transition for all.

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