Pakistan Sees Solar Power Boom Amid Challenges

Pakistan is experiencing a remarkable surge in solar energy adoption, becoming the world's sixth-largest solar market, largely driven by market dynamics rather than government initiatives. The country is set to import an estimated 22 GW of solar capacity by the end of 2024, with 13 GW already imported in the first half of the year, primarily from China. Rising electricity tariffs—up by 155% over the past three years—have pushed consumers towards solar energy, as they seek affordable alternatives to the unreliable national grid. This transformation has led to a significant increase in 'prosumerism,' where consumers generate their own energy. However, as more people turn to solar, the national grid faces financial strain with declining demand, raising concerns about a circular debt crisis. This scenario offers valuable lessons for other emerging markets, showcasing both the potential and challenges of a rapid energy transition.