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At present, Pakistan’s reliance on power generation is through conventional fuels and energy means. Moreover, Pakistan also possesses immense potential in renewable energy sources such as wind, solar, micro-hydel, tidal, biomass, and biogas, with solar having a technical potential of 2,900 GW, wind 340 GW, and hydropower 60 GW. The country is actively engaged in several hydropower projects, exemplified by initiatives like Kohala, Diamer-Basha, Duber Khwar, Kurram Tangi, and Golen Gol Dams.
Pakistan aims to diversify its energy mix, with projected energy investments between $62 billion to $155 billion by 2030, prioritizing power generation and energy efficiency. Additionally, Pakistan is incorporating nuclear power, emphasizing clean energy projects in compliance with IAEA standards, while also focusing on smart metering, smart grids, and energy efficiency measures. Moreover, Pakistan is actively promoting renewable energy and implementing a 10-year transition strategy to shift from gas to electricity in various sectors. A major energy efficiency and conservation project aims to reduce greenhouse gas emissions by 20% by 2030. The focus is on the energy sector, which contributes 46% of total emissions. A World Bank study suggests that a 25% reduction in building energy use could save 16 gigawatt-hours and approximately Rs 291 billion annually. These initiatives align with Pakistan's goals for sustainable development and cost savings in the energy sector.
As a climate-vulnerable nation, Pakistan can mobilise substantial global funding under a ‘Just Energy Transition Partnerships (JETPs)’. These partnerships facilitate targeted and catalytic funding, mobilising resources from various channels to support the energy transition. The energy transition will also open doors for green job creation, enable businesses, attract foreign investment and stimulate Pakistan’s economic growth.
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