Distributed Solar Energy Generation in Pakistan: Potential, Barriers and Policy Recommendations

Abstract

Pakistan’s energy generation mix remains heavily reliant on imported fossil fuels, contributing to current account deficit and fiscal pressures, high circular debt in the energy sector, and inflationary pressures for the population. Pakistan is endowed with tremendous solar energy potential that can be proactively capitalised to reduce reliance on foreign energy supply to meet domestic energy needs. Distributed solar energy generation is a promising means of exploiting this tremendous potential. However, its growth pace in Pakistan, notwithstanding the increase over recent years, is still considered unsatisfactory compared to the country’s solar power generation potential. Given this, the present research sought to identify the strengths, weaknesses, opportunities, and threats for the adoption and diffusion of distributed solar energy generation in Pakistan. The viability of developing a thriving distributed solar energy generation market will be contingent on addressing the weaknesses while proactively opportunities and mitigating threats.