Renewable energy capacity surges above 20% of the national power mix as net-metering drives growth, while thermal power remains the largest source of electricity generation.
ISLAMABAD: Pakistan’s installed electricity generation capacity increased to 49,651 megawatts (MW) during FY2025-26, driven by rapid expansion in renewable energy, particularly net-metering installations, according to the Economic Survey of Pakistan 2025-26.
The survey showed that while thermal power remained the country’s largest source of installed capacity, its share declined considerably as renewable energy expanded to account for more than one-fifth of the national power mix.
Installed electricity capacity reaches 49,651 MW
According to the survey, Pakistan’s total installed electricity generation capacity rose from 45,380 MW in FY2024-25 to 49,651 MW in FY2025-26, representing an increase of 4,271 MW, or 9.4%.
Installed capacity by source
• Hydropower: 11,615 MW (23.4%), up from 11,561 MW (25.5%)
• Thermal: 24,405 MW (49.2%), down from 27,507 MW (60.6%)
• Nuclear: 3,530 MW (7.1%), unchanged from the previous year
• Renewable: 10,101 MW (20.3%), up sharply from 2,782 MW (6.1%)
The survey noted that the renewable energy total includes 7,319 MW generated through net-metering, highlighting the growing contribution of rooftop solar installations to Pakistan’s electricity system.
Renewable energy records strongest growth
Renewable energy posted the fastest growth among all sources of electricity generation capacity during FY2025-26.
Installed renewable capacity climbed from 2,782 MW to 10,101 MW, increasing its share in the national installed capacity from 6.1% to 20.3%.
Meanwhile, thermal capacity declined to 24,405 MW, reducing its share from 60.6% to 49.2%, although it continued to represent the largest component of Pakistan’s installed generation capacity.
Hydropower capacity recorded a marginal increase to 11,615 MW, while nuclear generation capacity remained unchanged at 3,530 MW.
Electricity generation rises to 92,835 GWh
Pakistan generated 92,835 gigawatt-hours (GWh) of electricity during FY2025-26, compared with 89,809 GWh in the previous fiscal year.
Electricity generation by source was as follows:
• Thermal: 43,581 GWh (46.9%)
• Hydropower: 27,961 GWh (30.1%)
• Nuclear: 17,133 GWh (18.5%)
• Renewable: 4,160 GWh (4.5%)
Despite the rapid increase in installed renewable capacity, thermal power plants continued to account for the largest share of actual electricity generation, followed by hydropower, nuclear energy and renewable sources.
Transition towards cleaner energy
The Economic Survey indicates that Pakistan’s power sector is gradually shifting towards cleaner energy sources, supported by substantial growth in renewable energy capacity, particularly rooftop solar systems connected through the net-metering framework.
Although thermal power continues to dominate electricity generation due to its role in meeting base-load demand, the significant expansion in renewable capacity reflects increasing investment in alternative energy technologies. The trend is expected to strengthen Pakistan’s energy security, diversify the electricity mix and reduce long-term reliance on fossil fuel-based power generation while supporting the country’s transition towards a more sustainable energy sector.