Study highlights that country has become one of the main solar markets in five years
ISLAMABAD:
Electricity prices in Pakistan have jumped 155% over the past three years, with capacity payments and the depreciation of the rupee identified as the main factors, according to a new assessment that highlights the growing pressure on household finances nationwide.
In several regions, electricity bills have exceeded housing rents, reflecting the intensity of the crisis and forcing consumers to look for alternatives. The high cost of the electricity grid has forced a growing number of consumers to turn to solar panels, according to a report.
The Competition Commission of Pakistan (CCP), in a detailed study of the solar power sector, titled “Competitive Assessment of Solar Power Market in Pakistan”, has highlighted the structural inefficiencies and barriers that limit competition and investments.
The study highlights that the country has become one of the leading solar markets in five years, with installed capacity reaching 35 gigawatts and imports exceeding 50 gigawatts. However, he emphasizes that millions of consumers still do not have access to electricity.
The commission recommended urgent improvements to the transmission network, the introduction of smart metering systems and grid automation, as well as a broader transition to renewable energy, noting that Pakistan’s solar potential far exceeds its current needs.
The study observes that most solar usage in the country remains undocumented, while the proliferation of substandard equipment harms both consumers and market integrity. It also warns that Pakistan, among the countries most vulnerable to climate change, faces growing economic losses that could reach up to 6% of GDP by 2050.
Under the current framework, only a limited amount of electricity produced via net metering is connected to the grid. However, the report notes that solar adoption tends to increase with income levels, a trend further accelerated by falling prices of solar panels and batteries, making off-grid solutions increasingly attractive.
Highlighting systemic weaknesses, the CCP identified flaws in transmission infrastructure, policy ambiguity and concerns over product quality as key challenges.
