Pakistan possesses vast solar and wind energy potential, placing it in a strong position to transition toward affordable, carbon-free electricity. However, a recent United Nations report warns that weak grid infrastructure is a major barrier to scaling up renewable energy deployment across the country. The 2025 Review of Climate Ambition in Asia and the Pacific, published by the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP), emphasizes the urgent need for investment, coordination, and policy reforms to upgrade Pakistan’s electricity grid and integrate large-scale renewable energy while ensuring system stability.
The report stresses that successfully phasing down coal-based power in Pakistan will require a comprehensive energy transition plan. This plan should include clear targets, robust policies, and the engagement of all stakeholders, including private sector investors, utility companies, and communities. Importantly, the report highlights that the transition must be “just,” mitigating disproportionate impacts on workers, businesses, and households that may be affected by shifts in energy production and pricing.
Solar and wind energy have become increasingly cost-competitive compared to coal, giving Pakistan an opportunity to accelerate its shift toward cleaner energy sources. Data cited from the SDG-7 Roadmap for Pakistan show that the Levelised Cost of Electricity (LCOE) for solar and wind is significantly lower than coal-fired power, indicating that renewables can not only reduce emissions but also lower overall electricity costs. Despite this advantage, the report notes that weak transmission and distribution infrastructure could delay the adoption of carbon-free electricity if investments are not made promptly.
The UN report situates Pakistan within a broader Asia-Pacific context, noting that the region is at a “critical juncture” as economic growth accelerates and climate pressures intensify. In 2024, economic activity in the Asia-Pacific grew by 4.6 percent, contributing to 60 percent of global GDP growth over the past decade. Despite these gains, rising debt, climate change, and biodiversity loss continue to expose countries to mounting environmental and economic risks.
Asia-Pacific nations remain global leaders in renewable energy, accounting for 70 percent of new capacity additions in 2024. Governments are increasingly setting net-zero targets, revising climate policies, and incorporating them into Nationally Determined Contributions (NDCs) to meet emission reduction goals. The UN report stresses that translating these commitments into tangible action requires legal and regulatory reforms to attract private investment, strengthen incentives for clean energy adoption, and facilitate decarbonisation across industrial and supply chain operations.
Coal continues to dominate the energy landscape, producing 84 percent of the world’s coal-fired power in 2024 and consuming 81.7 percent of global coal output in 2023. Phasing down coal in Pakistan, the report asserts, will require political will, removal of fossil fuel subsidies, and coordinated policy frameworks that prioritize renewable growth and energy efficiency. The UN underscores that Pakistan’s energy transition will depend on long-term policy stability, institutional reforms, and financial support to encourage large-scale private and public investment in solar, wind, and other clean energy technologies.
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