Pakistan faces a critical challenge: ensuring reliable electricity access for its population. With millions lacking access to reliable power, the energy poverty crisis in the country is acute, particularly in its rural and impoverished areas. A report published by the United Nations Economic and Social Commission for Asia and the Pacific earlier this year notes that key to addressing this challenge is the potential of decentralized renewable energy systems, which are increasingly seen as viable solutions for delivering sustainable and affordable energy to regions where expanding the national grid has been fraught with challenges.
The report, “Fostering a Green, Affordable, and Inclusive Energy Transition in the Impoverished Regions of Pakistan,” notes that decentralized renewable energy systems, such as micro-hydropower plants (MHPPs) and solar off-grid solutions, leverage local renewable resources, making them suitable for remote and off-grid areas. MHPPs, for instance, have shown significant success in Pakistan’s northern regions.
A perception survey conducted by ESCAP in parts of northern Pakistan revealed that MHPPs have substantially improved electricity access, with 91% of respondents noting better outcomes — including for schools and hospitals. Separately, when it comes to off-grid solar systems in the Sindh province, these show potential but broader adoption faces challenges such as high upfront costs and limited awareness. Most households rely on small-scale systems to meet basic needs, whereas larger, more reliable systems are scarce and primarily owned by wealthier members of the community.
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The report emphasizes the importance of an enabling environment to scale up decentralized RE solutions in Pakistan and recommends the development of a national strategy for off-grid electrification. Such a strategy should involve the provision of subsidies and/or low-interest loans to reduce the financial burden on communities, technical upgradation, capacity building, as well as promoting a culture of partnerships between the public and private sectors to drive investment in these areas.
Download the full report originally published by the United Nations Economic and Social Commission for Asia and the Pacific on January 24, 2024.
