Historically, Pakistan has always been an energy importer and is highly dependent on fossil fuels. With the rising fossil fuel prices, the cost of oil importing is creating a dent on Pakistan’s foreign exchange reserves. The rising oil price along, with the rising demand for uninterrupted power, is creating additional pressure on the already fragile electricity grid of Pakistan.
Overall Pakistan is struggling with a large gap between electricity supply and a demand of about 5 GW. Main reasons for low investments in power generation are tariffs below cost recovery levels, power theft, insufficient collection rates, and technical losses of around 23-25%. As a result, power generation companies face serious financial problems, making large investments in power generation very difficult.
Population without electricity: 49,500,000
Electrification – total population: 73%
Electrification – urban areas: 91%
Electrification – rural areas: 62% (2013)
Integrated Energy Planning & Demand Forecasting
Imbalanced Energy Mix with heavy reliance on gas (47.5%) and Oil (30.5%) (72% imported)
Transmission, distribution loses/theft
Inadequate revenue collection by DISCOs
Alternate sources of energy including solar, wind, biomass, biodiesel
Energy conservation and demand management programs
Ensure operational/financial integrity of the sector
Implement international best practices including smart metering / automated meter reading (AMR) systems and Time of Use (TOU) tariff
Global Market Size
The International Energy Agency Predicts at least 40% of the world’s power will come from renewable sources by 2040.
The Global Renewable Energy Market was valued at $ 1,405,646 million in 2016, and is projected to reach at $2,152,903 million by 2025, growing at a CAGR of 4.9% from 2017 to 2025. In recent years, the share of renewable energy in the global energy mix is on a continuous rise. Renewable energy is generated from natural processes that are constantly replenished, including sunlight, geothermal heat, water, wind, tides, and various forms of biomass. Many nations across the globe have started using renewable energy for power production, owing to rise in the environmental issues such as climatic changes and depleting ozone layer.
Ever increasing demand for energy and continuous decrease of non-renewable sources of energy, such as petroleum, coal, and natural, drive the renewable energy market. Furthermore, increase in awareness about environmental safety & security and government initiatives has fueled the market growth. High cost of investment for the infrastructural setup restrains the market growth. However, increased government funding and development in the technologies present new opportunities for future growth.
Renewable Energy Market, by Geography
The Asia-Pacific region dominated the global renewable energy market, accounting for 41.1% share in 2016, registering a significant CAGR of around 4.8% during the forecast period. Europe accounted for the highest growth rate in the overall global renewable energy market, owing to government initiative to use renewable energy and stringent environmental policies imposed on companies in this region. South Africa witnessed the growth rate of 27.6%, in terms of value, during the forecast period.
Microgrids and AI
Energy Blockchain and IoT.