ISLAMABAD: Pakistan can massively curtail its expenditure by utilising its vast potential for renewable energy generation such as hydropower, wind, solar and biomass, said a renewable energy expert.
The use of illegal electricity connections for running tube-wells, particularly in remote areas of the country, is causing a huge economic loss, and adding up about Rs5 billion to the circular debt with each passing month, which has already reached Rs550 billion.
Quetta Electric Supply Company (QESCO) has reported this fact to the Senate Standing Committee on Power that there is insufficient power supply for Balochistan province due to which the local people had to endure long power outages. To meet the irrigation requirements, farmers are running tube-wells on illegal electricity connections.
While talking to WealthPK, energy expert Mustafa Abdullah said it is crucial to exploit the existing renewable energy resources with a special focus on solar energy to address the current energy crisis.
“Solar energy has the potential to tackle all these challenges. It has emerged as the most competitively priced technology worldwide,” he added.
Abdullah emphasised the need for public and private sector investment to harness true renewable energy potential. He said currently 13 projects of renewable energy worth $600 million are pending with the Ministry of Energy to get approval. These projects upon approval will produce 650 megawatts of energy.
Abdullah said insufficient electricity generation has intensified the problem of circular debt. He explained that the circular debt snowballs when the power producers do not receive timely payments from power distribution companies (DISCOS), leading to a shortage of funds for power generation.
He said this issue is a big challenge for the government, which is already facing difficulties with a large fiscal deficit and a slowing economy. He said the energy shortage problem not only affects the life of individuals, but also hinders the overall economic development.
“In Pakistan, the energy demand is increasing by 9% annually, and it is estimated that it will grow eight-fold by 2030 and 20-fold by 2050,” the energy expert pointed out.
China, the global leader in the solar energy sector, has progressed remarkably in recent years. China installed a record 87.41GW of solar power in 2022. Pakistan can achieve huge progress in the renewable energy sector by following China’s example.
