Besides generation shortfall the transmission and distribution bottlenecks are contributing towards severe load shedding being faced time and again all over Pakistan.
Keeping in mind the above issues, the Government of Pakistan is promoting investment in the generation of small-scale distributed Renewable Energy, through the Alternative Energy Development Board (AEDB), on the basis of the Net-Metering concept.
Over the next 5 years, the Ministry of Power has plans to integrate more than 5000MW from small-scale (1kW to 1MW) Renewable Energy installations at the distribution level using net-metering. This will be done by private sector developers through prequalified contractors and suppliers.
Microgrids are gaining importance as the provincial governments in Pakistan turn their attention towards electrifying remote villages. Off-grid solar with storage and the microgrids are bound to play a significant role as village electrification progresses.
Pakistan has also emerged as one of the largest off-grid solar-storage and microgrid markets among the emerging economies. Pakistani imports of PV solar modules from China totaled more than US$ 300 million in 2017.
The provincial governments have already started a number of solarization programs where significant role of private sector is envisaged. Enabling environment for prequalified suppliers and developers is being created.
Pakistan is quite ready to induct Electrical Vehicles (EVs) which do not produce exhaust gases during operation. However, the electrical energy for charging the vehicle does have to come from renewable sources, e.g. from wind and solar to make the EVs more effective in meeting targets of Paris Agreement.
The EVs can be very easily manufactured locally. Several Chinese companies are ready to invest in local production of electric cars.
The Government also plans to go for locally manufactured electric buses suited to the local road infra-structure, as being done by many SAARC countries. Research is also going on at local universities to produce fast charging, long lasting batteries for EVs. The industry also says that local manufacturing of EVs is the only solution for a sustained development