Renewable Energy-Based Distributed Generation in Pakistan: Status, Importance, and Electrification Opportunities

Renewable energy improves energy security, provides reliable power supply, and ensures fuel diversification. It also offers a solution to the problem of circular debt which has lately become a major concern for the power sector of Pakistan. At present, the share of renewable energy resources in the energy mix is significantly low and the Government of Pakistan (GoP) is urging the drivers and enablers to boost clean and green energy generation and distribution. The power sector, especially the distribution companies, are facing numerous issues in transmission and distribution of power, and recovery of losses. Distributed generation (DG) can play a vital role in overcoming these issues. The effectiveness of solar PV systems, the active role of the capital market, and environmental concerns are among the major factors that prompt the adoption of net-metered solar systems. Apart from traditional alternate energy sources through sunlight and wind, Pakistan has enormous potential for biomass fuel if it could develop proper facilities for biomass-based electrification. For issues related to grid coverage and technical losses in far-flung rural areas, mini-, and micro-hydro power-based distributed generation can serve the purpose. Distributed generation can play a vital role in steering the national power sector toward power sources that offer clean, green, and cheap energy. Huge opportunities for prosperity in rural areas can be also created through carbon-free atmosphere and a sustainable energy sector.