“Nowadays, China, as a producer and investor of green technology and finance, is at the forefront of global sustainable development, with its development model always emphasizes common growth, from which not only Pakistan, but the entire South Asia region, could also benefit from, as long as we fully participate in it. Our national development plans should and could play a vital role in this process,” Dr Sajid Amin Javed, Deputy Executive Director at the Sustainable Development Policy Institute (SDPI), noted.
Pakistan’s growing energy sector is heavily reliant on fossil fuels, which currently provide around 65 percent of the country’s energy mix. Therefore, pursuing energy structure transformation has always been a priority for government sustainable planning.
According to official figures, Pakistan imported USD 1.11 billion worth of solar products from January to September 2023, equivalent to an estimated 4GW of modules. And Chinese companies are major investors in Pakistan’s renewable energy projects as out of foreign investment of USD 144 million in solar PV plants, USD 125 million is coming from China, constituting nearly 87 percent of total capital, emphasized Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) President Moazzam Ghurki.
“The future of global solar energy industry must be the coordination of centralized and distributed photovoltaics, just like a person could not walk with only one leg. Except for large-scale centralized PV projects, distributed household PV still have great potential in Pakistan. For instance, a panel with a power generation capacity of several hundred KW, coupled with a small energy storage device, can solve a farmer’s daily and agricultural electricity problems. Providing PV equipment with guaranteed quality and reasonable prices for such a market would be a golden opportunity that Chinese companies need to conduct a deeper exploration,” Liu Yiyang, Deputy Secretary General of China Photovoltaic Industry Association (CPIA), pointed out.
Some smallholder farmers from Bhagwela, Rahim Yar Khan, in Punjab province, has installed solar tube well already. With the solar-powered tube well irrigating their farmland, local farmers have cut costs and improved the crop yields.
A post-installation impact survey conducted by the NRSP found that 80 percent of respondents reported savings of up to 15,000 Pakistani rupees (around EUR 50) a month. As an eco-friendly and cost-effective alternative to the diesel or mains electricity-powered pumps, it always a greener and cheaper choice.
“By integrating advanced technologies and best practices that prioritize sustainable development, Pakistan can both meet energy demand and effectively mitigate the adverse impacts of energy production on its environment,” Senior Research Economist and former executive director of CPEC Centre of Excellence at the PIDE, Mehmood Khalid echoed. “Owing to Pakistan’s significant import bill predominantly associated with oil and related products, it becomes imperative for us to seize opportunities in low-cost energy production, green energy initiatives, and climate finance. Pakistan needs to maximize the benefits in addressing these challenges efficiently,” Sajid added.
Take Gwadar, a key planned port jointly built by China and Pakistan, as an example, China has provided a total of 7,000 sets of solar panels for households here. Another 10,000 sets of solar panels are under active preparation and will be allocated to poor people in Balochistan, offering crucial relief for the local community to endure a prolonged energy crisis.
In its report released in January, the International Energy Agency (IEA) forecast that overall global electricity demand is expected to grow by 3.4 percent by 2026. Increasing efforts to support renewable energy sources such as solar, wind and hydropower, as well as nuclear energy at a record high, to compensate for this surge will be an issue that China, Pakistan, and the globe must face and resolve head-on.
