Molly Ayala
Pakistan's electricity sector is a developing market, and the country has made strides in recent years to balance supply and demand. Pakistan's electricity consumption is a mix of fossil fuels and low-carbon energy sources, with hydropower being the largest source of clean electricity. In this context, the question of which province collects the most electricity is important, as it highlights the regional disparities in energy access and consumption within the country. Pakistan's electricity generation and distribution are handled by vertically integrated public sector companies, and the country has set ambitious targets for renewable energy, aiming for 58% renewable electricity by 2030.
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What You'll Learn
Sindh's electricity consumption
Pakistan's electricity sector is a developing market that has faced significant challenges in recent years. The country has struggled to balance supply and demand, with electricity generators seeking parity in returns for investors to oversee a surge in electricity generation amid growing shortages.
Sindh, one of the provinces in Pakistan, has shown varying trends in electricity consumption over the years. Data from the Hydrocarbon Development Institute of Pakistan indicates that in 2020, Sindh's electricity consumption was recorded at 20,876 GWh (gigawatt-hours). This figure represented a slight decrease from 2019, which had an electricity consumption of 21,016 GWh, the highest in the recorded data range from 2004 to 2020. On average, from 2004 to 2020, Sindh's electricity consumption was 16,325 GWh, with the lowest consumption recorded in 2004 at 11,624 GWh.
The electricity consumption data for Sindh reflects the broader energy landscape in Pakistan. Pakistan has experienced a "solar boom," with a significant addition of solar energy to its grid. In 2024, the country added an estimated 17 GW of clean solar energy, attributed partly to cheap Chinese solar panels and government tax exemptions. This shift towards renewable energy sources has contributed to a decrease in the overall consumption of electricity in Pakistan.
To meet the increasing demand for electricity in Sindh and across Pakistan, the country has focused on restructuring agreements with independent power producers (IPPs) to facilitate end users. Pakistan's electricity sector is primarily managed by two vertically integrated public sector companies: the Water and Power Development Authority (WAPDA) and the Pakistan Electric Power Company (PEPCO). These companies work with distribution companies to supply electricity to consumers.
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Sindh's coal mining
Pakistan's electricity sector is a developing market, and the country has faced significant challenges in revamping its electricity supply network. The country has experienced rising energy demands, political instability, and an over-reliance on fossil fuels, which led to a severe power crisis in 2007.
To address these issues, Pakistan has set targets for reducing greenhouse gas emissions and increasing the proportion of renewable sources in its energy mix. As of 2022, 95% of Pakistan's population had access to electricity, and the country added an estimated 17 GW of clean solar energy to its grid in 2024. However, Pakistan also indicated it would quadruple its coal power plants, taking advantage of its domestic coal sources.
Sindh, one of the provinces in Pakistan, is endowed with abundant reserves of high-quality lignite coal, estimated at 184 billion tons. Sindh Engro Coal Mining Company (SECMC) is a joint venture between the Government of Sindh, Engro Energy Limited, and other partners, including the China Machinery Engineering Corporation. SECMC operates Pakistan's first open-pit lignite mine in Block II of the Tharparkar area in Sindh, making it the country's leading coal producer.
The Thar Coal field, located in the southeastern part of Sindh, is one of the world's largest coal fields and is sufficient to meet Pakistan's fuel requirements for centuries. To expedite the development of this vital resource, the Sindh Government established the Thar Coal and Energy Board (TCEB) in 2008. The Sindh Lakhra Coal Mining Company (SLCMC), established by the Energy Department of the Government of Sindh, aims to develop commercial and development projects to enhance the coal sector's value chain and ensure the efficient use of energy resources.
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Punjab's nuclear power
Pakistan's electricity sector is a developing market that has faced significant challenges in revamping its electricity supply network. The country has been working to reduce its reliance on fossil fuels and increase the use of renewable energy sources. In 2022, 95% of Pakistan's population had access to electricity, with the country aiming to generate 60% of its electricity from renewable sources. Pakistan has experienced a solar boom, adding an estimated 17 GW of clean solar energy to its grid in 2024.
Punjab, a province in Pakistan, plays a crucial role in the country's nuclear power sector. The Chashma Nuclear Power Complex (CHASNUPP) is a large commercial nuclear power plant located in Mianwali, Punjab. It is owned by the Pakistan Atomic Energy Commission (PAEC) and has four operational nuclear reactors, with a fifth under construction in collaboration with China. The Chashma plant has a generation capacity of 900 MW, and the fifth unit is expected to produce 1,200 MW of electricity. The construction of this unit began with a groundbreaking ceremony performed by the Prime Minister of Pakistan in July 2023 and is estimated to cost approximately $4.8 billion.
In addition to the Chashma plant, there are plans for another 1100 MWe nuclear power plant at Muzaffargarh, on the Taunsa-Panjnad canal near Multan in southwest Punjab. The Pakistan Atomic Energy Commission (PAEC) has also announced its intention to build five additional 1100 MWe nuclear reactors to meet the country's growing electricity demand. These reactors are expected to contribute significantly to the country's electricity supply, with nuclear power providing about 18.65% of Pakistan's total electric energy generation in FY2023.
The Khan Research Laboratories (KRL) in Kahuta, Punjab, is a key part of Pakistan's nuclear program. It is a weapons engineering research and development institute that produces high-enriched uranium using centrifuge technology. The laboratory has been in operation since the 1970s and has expanded over the years. A uranium centrifuge enrichment plant at KRL has been operational since 1984 and has been expanded multiple times. The heavy water used as a coolant in Karachi and Chashma nuclear power plants is also produced at a facility in Multan, Punjab.
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$10.47
Pakistan's hydropower
Pakistan's electricity sector is a developing market that has faced significant challenges in meeting the country's demand for electricity. In recent years, Pakistan has experienced a solar boom, with an estimated 17 GW of clean solar energy added to the grid in 2024. The country has also seen growth in electricity generation capacity from coal, driven by the use of cheap domestic coal. However, Pakistan has not fully harnessed the potential of hydropower, which offers a clean, renewable, and economical source of energy.
Hydropower offers Pakistan numerous benefits, including a reduction in dependence on fossil fuels, energy security, and a decrease in greenhouse gas emissions. However, there are also challenges and drawbacks associated with hydropower development. One major challenge is the high capital cost and lengthy project completion times. Additionally, the degradation of reservoirs over time and the effect of seasonal variations can impact the reliability of hydropower as a consistent energy source.
Despite these challenges, hydropower remains a priority for Pakistan due to its potential to provide a secure, economical, and clean source of energy. The country's major reservoirs recorded cumulative water storage that surpassed the five-year average in August 2024, highlighting the potential for further development of hydropower resources. With the continued expansion of hydropower projects and the full exploitation of its vast potential, Pakistan can make significant strides towards achieving its renewable energy goals and alleviating its energy crisis.
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Pakistan's solar energy
Pakistan's electricity sector is a developing market that has faced significant challenges in revamping its network. The country has experienced power shortages, political instability, and rising energy demands. However, Pakistan is witnessing a solar power boom, with a rapid increase in the adoption of solar energy. This shift is driven by various factors, including declining solar panel prices, rising grid electricity tariffs, and growing consumer independence.
Pakistan has added a significant amount of solar energy to its grid, with an estimated addition of 17 GW of clean solar energy in 2024 alone. The country now has solar plants in Pakistani Kashmir, Punjab, Sindh, and Balochistan. The Quaid-e-Azam Solar Power Park in Punjab, built in 2015, has a capacity of 400 MW. The Sindh Solar Energy Project, funded by the World Bank, aims to enhance solar power generation in Sindh Province through utility-scale solar development and distributed solar installations. The Punjab provincial government also inaugurated a subsidized solarization project for agricultural tube wells in the province in February 2025.
The adoption of solar energy in Pakistan has been driven primarily by market forces, with minimal political support. The availability of cheap Chinese solar panels has played a significant role in the country's solar boom. China's overproduction of solar panels has lowered costs, making Pakistan the third-largest destination for Chinese exports. In 2022, China exported 16.6 GW of solar capacity to Pakistan, about five times the amount in 2021.
While the shift towards solar energy in Pakistan offers immense opportunities, it also presents challenges. The rapid adoption of solar power by affluent Pakistanis has resulted in a decline in demand for traditional power sources, driving up costs for those still connected to the grid. Additionally, most solar setups in Pakistan are not configured to send spare power back to the grid, limiting the benefits to the wider public. This unmanaged transition to solar energy has left out many in Pakistan's struggling middle class, who have been forced to cut back on electricity due to soaring bills.
To promote the use of solar energy, the Pakistani government has introduced incentives such as net metering and feed-in tariffs. The Sindh and Punjab provincial governments announced policies in 2024 to provide free or subsidized solar panels to low-income residents. Pakistan possesses a solar power potential of 40 GW and has set a goal to achieve 20% of its electricity from renewable sources by 2025.
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Frequently asked questions
Pakistan generates electricity from a mix of fossil fuels and low-carbon energy sources. The largest nuclear power plant is in Punjab, while hydropower plants are mainly in the north of the country. Sindh and Balochistan are the main provinces for coal mining, and Sindh also has the highest electricity consumption data. Karachi Electric is the only private company in the sector, responsible for power generation and distribution in the Karachi area.
Pakistan's electricity is generated by a mix of fossil fuels and renewable sources. Fossil fuels account for over half of the electricity production, with gas being the largest contributor at 25% and coal at 14%. Low-carbon electricity generation makes up almost 47% of the total, with hydropower contributing 19%, nuclear power 13%, solar energy 10%, and wind energy 3%.
Two vertically integrated public sector companies are responsible for electricity generation and distribution in Pakistan. These are the Water and Power Development Authority (WAPDA) and the Pakistan Electric Power Company (PEPCO).
Pakistan's electricity sector faces several challenges, including a lack of efficiency, rising energy demands, and political instability. Underutilization of generation capacity and distribution losses are also issues, and the country has faced major power crises and blackouts in the past.
Pakistan has a significant potential for renewable energy production and has set targets for reducing greenhouse gas emissions. The country is experiencing a solar boom, and there has been notable growth in nuclear and solar energy generation in recent years. Pakistan's electricity consumption has stagnated, which could indicate a halt in economic or infrastructural growth, but the increase in low-carbon electricity generation is encouraging.
