Government plans major shift toward renewable and indigenous energy sources in coming years
Pakistan plans to increase the share of clean energy in its total power production from the current 55% to 90% in the coming years, Sardar Awais Ahmed Khan Leghari said on Thursday.
The minister shared the government’s energy transition plans during a meeting with Ina Lepel at the Power Division, where both sides discussed ongoing reforms and development initiatives in Pakistan’s energy sector.
Leghari said Pakistan was increasingly generating electricity through indigenous energy resources, helping strengthen energy security and long-term sustainability.
He said the government was planning around 800 megawatts of renewable energy through a competitive market mechanism and added that no new power purchases would be pursued beyond already committed agreements.
According to the minister, Pakistan achieved nearly 70% self-sufficiency in the energy sector during the previous year.
Leghari also briefed the German ambassador on progress regarding the privatization of electricity distribution companies. He said three out of 11 distribution companies, commonly known as DISCOs, had been selected for the initial phase of privatization, with additional companies expected to follow later.
The minister emphasized the importance of Battery Energy Storage Systems (BESS), describing them as essential for building a modern and stable energy network. He said a BESS project for the Lahore Electric Supply Company was under consideration with support from GIZ.
He also highlighted the need for greater investment in transmission infrastructure, saying Pakistan required significant financing to expand and modernize its transmission network. The government is engaging the Pakistan Business Council and private stakeholders to support those efforts.
Leghari proposed establishing a Pakistan-Germany Energy Cooperation Framework to deepen bilateral collaboration and facilitate investment opportunities for German financial institutions in Pakistan’s energy sector.
Ambassador Ina Lepel said a climate cooperation framework already existed between Pakistan and Germany that included energy-related initiatives. She noted that both countries could further enhance the effectiveness of their cooperation.
She added that a project worth around 300 million euros was currently under implementation, while new projects were being prepared for 2027.
The ambassador also expressed interest in supporting small hydropower, solar, and sustainable energy projects, while appreciating Pakistan’s ongoing reform efforts in the power sector.
Both sides agreed to strengthen technical-level engagement and maintain close coordination on future energy cooperation initiatives.