Donor
TARA Foundation
Duration
September 2021 to August 2022.
Introduction
Despite the recent political emphasis on the impact of climate change in the country, Pakistan’s environmental crisis is worsening, with a marked increase in carbon emissions due to extensive use of fossil fuels to generate energy, and air pollution through vehicles has further exacerbated the issues. The country is ranked among the top ten most affected and most vulnerable to climate change as is illustrated by its irregular rainfall patterns, heat waves, droughts, and increased glacier melting. Natural resource degradation, pollution, and climate change are the core environmental challenges of the country, and, if not addressed and managed properly, could easily jeopardize sustainable development. This distortion is evident through the costs of environmental degradation estimated at 6% of GDP per year.
This project aims to provide an evidence-based platform to advocate to overcome these challenges through an energy lens and support the need for clean energy transition in Pakistan which will contribute significantly towards limiting carbon emissions and will make a long-term socio-economic case due to the reduced cost of energy generation and consumption. It would be further analyzed that what reform priorities are needed in the energy market, and how government is trying to unfold it in future for creating an economically viable case for renewables.
Based on the recent assessments and findings of the research and consultation with various stakeholders the government of Pakistan urgently need to work on, a) Development of an inclusive and comprehensive energy plan, b) Formulation of legal and regulatory measures that tackle critical reforms in the parastatal energy companies and electricity market, c) Modernize transmission and enable private sector investment in it, d) Enhance recoveries and reduce distribution losses, and e) Encourage private sector investment in generation of clean energy.
The government of Pakistan has set an ambitious plan to increase the share of renewable energy in power generation to 20% by 205 and 30% by 2030,from around 4% today (Alternate and Renewable Energy (ARE) Policy 2019. Share of hydropower in total generation mix is also projected to increase to 30% by 2030 (from around 27% today). However, the Government plans per the current planning document of Indicative Generation Capacity Expansion Plan (IGCEP 2040), all of this goodwill and international acclaim is threatened to be disregarded with volumes of RE massively reduced and the share of VRE, as defined in the ARE Policy document being limited to around 10 to 12%. There are institutional and structural disconnections, and fragmentation in the priority of issues, which emerge through a complex interplay of diverse roles of actors with specific objectives and means of implementing policies. Therefore, the effective planning and implementation of policies require a structured stakeholder involvement and the role of provinces in evidence-based policymaking and overcoming the barriers of renewable energy growth in the country.
Therefore, we aim to develop the objectives of the project for future SDPI interventions based on the following findings and recommendations of the interventions from the previous year:
● The main challenges in the energy sector involve availability and affordability of energy, improving transmission and distribution networks, and providing energy access to remote areas through decentralized energy systems, which can be overcome through learning platforms and training on updated technologies, techniques, and local production facilities and environment.
● Another challenge towards engagement of the private sector for clean energy transition is the sanctity of contracts and consistency of policies. Wheeling policies and Competitive Trading Bilateral Contracts Market (CTBCM) are likely to play a major role in private sector engagement and will require detailed orientation of the relevant governmental and private sector stakeholders.
● The basis of CPEC projects can be a socio-economic, environmental, and financial framework that may take into account relevant long-term impacts. Private sector Chinese investors may also be guided in a similar way.
● The prioritized focus of economic recovery after Covid should be towards organizations, projects, and products focusing on incorporating Natural Capital Accounting (NCA) Into energy policies for sustainability.
● For rapid decarbonization, Pakistan needs to look well beyond the power sector. Currently, the transport sector in Pakistan is a major contributor to CO2 emissions and also consumes a large share of imported fuels. A transition towards Electric vehicles also poses significant prospects and needs to be carefully analyzed, especially when the Government of Pakistan has already put forth an Electric vehicle Policy.
Objectives
The main objectives of the project are
· To develop an annual state of renewables report that serves as multi-stakeholder platforms for co-operation and coordinated action to support and accelerate a Renewable based energy transition in Pakistan.
· Identifying policies and strategies to ensure reliability, affordability and access to clean energy in Pakistan.
· To establish “Renewable Energy Parliamentary Caucus” for Energy Transition.
Research Outcomes
The outcomes of the project include
1. Developing an “Annual state of Renewables” report, based on Desk Review and situation analysis based on quantitative and qualitative analysis of data collected using data repositories, reports, research papers and surveys , Interviews, Focused group discussions (FGDs), and consultations with active champions of change and relevant stakeholders
2. A “Working Paper” on “Role of private sector in Clean Energy Transition of Pakistan: A case of Competitive Trading Bilateral Contracts Market (CTBCM)”.
3. A “Working Paper” on “Socio-Economic prospects of Electric Vehicle (EV) Policy 2019 and EV market preparedness of Pakistan”.
4. A “Policy Brief” on “Role of Green financing to support energy transition in Pakistan.
5. Periodic briefs on renewable energy, as a tool to engage with parliamentarians and offer support, by sharing the latest knowledge, experience, and best practices on renewable energy socio-economic benefits and specific related topics, such as the issue of energy access or climate change, SDGs, poverty, gender, green finance and issues of just transition.
Status: Completed
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