Renewable energy industry players point to massive load shedding and rising electricity costs as several reasons why Pakistani consumers are looking to adopt photovoltaics. While Pakistan has the highest electricity price in South Asia, it is indeed surprising that photovoltaic power generation has not gained a firm foothold in Pakistan. This is related to the lack of support provided by the government agencies in the country, and the policies currently adopted in the country not only do not effectively increase power generation, but also remain a major obstacle for consumers to find solutions themselves, even in the case of power outages of 8-12 hours The same is true, and there is no sign of relief in sight.

lack of government support

Industry experts pointed out that Pakistan's photovoltaic industry lacks sufficient support from government agencies. In the context of the push to build large coal-fired power plants and large hydropower projects, the development of renewable energy generation facilities has hitherto been neglected. The "revolving debt" of Pakistan's power sector increased by Rs 196 billion to a record Rs 2,476 billion in the first six months of the 2021-22 fiscal year (July-December) compared to the same period last year. Total accounts payable for the period April-July 2023 is estimated at Rs 2,631 crore. However, the figure is expected to drop to Rs 2,374 crore by the end of fiscal 2023.

“Revolving debt” can be described as the difference between generation and transmission costs and revenues at the distribution level. A significant problem is the failure of distribution companies to bill consumers for their electricity. Generation and transmission losses have remained above 20%, which has been made worse by the economic fallout from COVID-19.