Renewable, or green, energy has been in the spotlight for decades. Recent technical advances, such as long-duration energy storage technologies, static compensators, and “green” hydrogen, have made renewable energy a feasible choice not just for rich Western nations, but also for developing nations such as Pakistan.
Last year’s passage of the alternative and renewable energy strategy demonstrated the current government’s fervent interest in boosting sustainability. The strategy intended to increase the percentage of power generated from renewable sources from 5% to 20% by 2025. Furthermore, the program intends to increase the percentage of renewable energy to 30% by 2030.
The significant tax breaks for investors and incentives for domestic manufacture of renewable energy equipment would stimulate a big shift toward renewable energy and strengthen domestic sectors. Previously, research has shown that renewable energy subsidies in Europe have been highly beneficial in the long and short-run in promoting and adopting renewable energy.
In addition to the 2019 alternative and renewable energy strategy, the current government has established the national electric vehicles (EV) policy, which has pushed widespread mainstream adoption of electric cars to combat urban air pollution and avoid additional impacts of climate change. This legislation has also resulted in the growth of the local EV sector, with Jolta Electric beginning to manufacture electric motorbikes locally. This transition to electric vehicles would also help Pakistan considerably reduce its oil import cost while also creating jobs in green businesses.
Pakistan now imports one-third of its energy resources, including oil, which accounts for a sizable portion of the import cost. Keeping the budget imbalance in mind, it is crucial to remember that Pakistan cannot continue an import-driven energy strategy. In the long run, energy instability would cause inflation and imported energy supplies, such as petroleum and diesel, to be priced at a premium, reducing the competitiveness of Pakistani exports on a worldwide scale and further limiting Pakistan’s capacity to pay the large import bill.
The current government’s strategy of subsidizing renewable energy resources and encouraging the fast adoption of electric cars gives Pakistan the chance to cut energy imports and power prices in the long run. Greater energy security and self-sufficiency will result from increased conservation efforts and the implementation of sustainable energy practices.