Why Renewable Energy is the Key to a Greener Future

Author:  Adeel (Energy Engineer, Eco-Ambassador)

Current Energy Landscape in Pakistan

Excessive dependence on fossil fuels, high-cost imported energy, and supply-demand imbalance have adversely affected Pakistan’s energy market for decades. Over 60% of the country’s electricity is being generated from fossil fuels like coal, oil, and natural gas as of recent years. The increasing circular debt issue, routine power outages, and uneven electricity prices are the consequences of this.

NEPRA’s State of Industry Report for 2023 writes that while electricity installed capacity has exceeded 40,000 MW in Pakistan, energy shortages persist mainly due to inefficiencies in the transmission system, volatility in fuel prices, and an underutilization of renewable sources. The existing paradigm is not only environmentally damaging but also economically unsustainable.

Environmental Impact of Conventional Energy Sources

One of the largest sources of greenhouse gas emissions globally is the generation of electricity from fossil fuels. The country is ranked among the top 10 countries most affected by climate change, even though it emits less than 1% of the world’s emissions (Global Climate Risk Index 2021).

Climate-related catastrophes include:

• The 2022 floods that had over 33 million people displaced and resulted in over $30 billion in damages.
• Urban heatwaves in Jacobabad and Karachi, where temperatures have exceeded 51°C, posing risks to lives and livelihoods,
• Severe smog and air pollution in Lahore, often listed among the world’s most polluted cities during winter,
• Extensive droughts and unpredictable rainfall, which have devastated agriculture and cut crop yields across Sindh and Baluchistan,
• Glacier melting in the north, increasing glacial lake outburst floods (GLOFs) and putting downstream communities at risk,
• Great power outages, such as the January 2023 national grid collapse, revealing the vulnerability of centralized fossil-fuel-based systems,

…all indicate the need for an immediate cleaner energy trajectory. Apart from carbon emissions, air pollution, water contamination, and forest loss, all are side effects of coal and oil power plants that affect ecosystems and the health of individuals.

Why Renewable Energy is the Solution

An alternative to traditional fossil fuels that is cleaner, more sustainable, and becoming more affordable is renewable energy, especially solar and wind. Renewable energy sources are not only a green choice, but also a strategic necessity given Pakistan’s escalating climate risks and energy insecurity.

• Abundant Local Resources:
  Pakistan has a vast amount of untapped solar power potential due to its more than 300 sunny days annually. There are also feasible wind corridors in the south and west, such as Jhimpir and Gharo, which are perfect for big wind projects.
• Reducing Energy Imports:
  In order to power its grid, Pakistan currently imports billions of dollars’ worth of LNG and oil every year. We can strengthen energy security, save foreign exchange, and lessen our reliance on imports by investing in solar and wind.
• Affordable & Declining Costs:
  Over the last ten years, the price of solar panels has decreased by more than 80%. In many regions of Pakistan today, solar energy is more affordable than grid electricity, particularly for commercial and industrial users.
• Quick Deployment & Scalability:
  Solar systems can be installed in homes, schools, factories, and hospitals in a matter of weeks, as opposed to years for large fossil fuel or hydro projects. Because of this, renewable energy is perfect for rapidly closing Pakistan’s power gap.
• Job Creation & Innovation:
  The renewable energy sector has the potential to create thousands of green jobs—from solar installers and technicians to engineers and energy auditors. This helps boost the economy while tackling unemployment.

Moreover, as battery technology improves and grid integration becomes smarter, renewable energy can now offer reliable, round-the-clock power solutions even for off-grid and remote communities.

Government Policies & Incentives in Pakistan

The Pakistani government has taken steps to promote clean energy, though there is room for improvement in execution and consistency. Key policies include;

• Alternative and Renewable Energy Policy 2019: Aims for 30% of the energy mix from renewables (excluding hydro) by 2030.
• Net Metering: Allows homeowners and businesses to sell excess solar energy back to the grid under NEPRA’s regulations.
• Tax incentives and import duty exemptions: Offered for certain solar components and renewable technologies.

Various international development agencies (e.g., World Bank, ADB, UNDP) are also supporting Pakistan’s renewable energy transition through technical and financial assistance.

DSG Energy’s Role in Driving the Transition

At DSG Energy, we believe in driving the transition to solar energy in Pakistan by providing:

• Tailored solar solutions for residential, commercial, and institutional setups,
• World-class equipment and certified installations,
• Net metering approval support and after-sales assistance.

DSG Energy has executed a number of high-impact solar projects in Pakistan. Some of them include:

• Unilever Pakistan – Rahim Yar Khan Factory: 1 MW
• Mahmood Textile Mills: 6.3 MW
• Naz Rice Mills, Sahiwal: 1.8 MW
• Imtiaz Supermarket (different locations): Various rooftop systems between 100 kW and 500 kW
• Masood Roomy Group: 2 MW
• Sapphire Group: 1 MW
• Lackson Group (Century Paper & Board Mills): 3 MW

We believe that clean, affordable energy is a right, not a privilege, and are honored to be part of Pakistan’s energy revolution. By enabling people and organizations to produce their own electricity from the sun, DSG Energy is directly reducing carbon emissions, saving energy bills, and helping create a sustainable future.

Conclusion: A Greener Future through Renewable Energy

As Pakistan struggles with increasing energy prices, more severe climate catastrophes, and growing power demand, renewable energy is no longer a choice—it is a necessity.

With more than 25 million individuals still without access to electricity, and the nation investing over $17 billion each year on energy imports, the need to shift is evident. Solar and wind power can fill this gap—cleanly, cheaply, and reliably. Consider this:

• Pakistan has the technical potential to generate over 2.9 million MW from solar alone.
• The levelized cost of solar energy is now 30–40% cheaper than traditional grid electricity for commercial users.
• DSG Energy alone has installed over 150 MW+ in solar capacity—proof that local solutions are already in motion.

The Sapphire Group, Unilever, and Imtiaz are set to lead the way, trimming costs, lowering emissions, and enhancing resilience through clean energy collaborations with DSG Energy. If replicated countrywide, clean energy has the potential to; offset millions of tons of CO₂ every year, generate multiple green job opportunities and cut billions in energy spending over the next decade.
The path is clear. The technology is ready. The momentum is building. It’s time for Pakistan to power its future with the sun above us, not the fuels beneath us and DSG Energy is proud to be lighting the way.