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Solar Energy Saves Pakistan $12 Billion: Sherry Rehman

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Sherry Rehman says solar energy saved Pakistan US$12 billion.
Another US$6.3 billion in savings is expected this year.
She urges battery storage and grid modernization for resilience.
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Vice President of the Pakistan Peoples Party (PPP), Senator Sherry Rehman, addressed the Solar Storage Flexibility Conference, emphasizing that reliable electricity is the foundation of economic growth and social development.

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She said countries with dependable electricity are the ones that prosper, while unannounced load shedding continues to disproportionately affect students and low-income households.

She noted that millions of Pakistanis still lack access to affordable and reliable energy despite the country’s significant installed power generation capacity. Pakistan’s electricity demand remains below its installed generation capacity, making the challenge one of planning and efficient energy management rather than generation alone.

Highlighting the country’s rapid transition towards renewable energy, Senator Rehman said increased solar imports, coupled with battery storage, would strengthen Pakistan’s energy security. She added that net metering enables consumers to sell surplus electricity back to the national grid, making the power system more flexible and resilient.

She revealed that solar energy has already saved Pakistan US$12 billion, with an additional US$6.3 billion in savings expected this year, describing renewable energy as one of the country’s greatest economic opportunities. She stressed that greater deployment of Distributed Energy Resources (DERs) would significantly reduce carbon emissions while accelerating Pakistan’s clean energy transition.

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Senator Rehman said the national grid already has surplus capacity, but the challenge lies in resolving capacity payments and modernizing the system. She called for greater investment in battery storage, smart grids, and grid modernization to unlock the full potential of renewable energy.

Referring to Pakistan’s role in global climate diplomacy, she said the country played a leading role in establishing the Loss and Damage Fund and described the COP process as an important platform for advancing global climate cooperation.

She highlighted the rapid expansion of rooftop solar across the country, noting that one in every five households in Pakistan now has a solar energy system. She also pointed to the Government of Sindh’s partnership with the World Bank to provide solar power packs to communities, calling it a practical model for expanding clean energy access. Referring to the Global Solar Council’s campaign to electrify 300 million homes, she said the initiative could deliver substantial reductions in global carbon emissions.

Senator Rehman said international climate finance remains inadequate and must evolve to meet the realities of the global energy transition. She outlined four priorities for making climate finance more effective and equitable.

First, she said international climate finance must shift decisively toward distributed renewable energy, not only utility-scale projects, so that clean energy solutions can reach households and communities directly.

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Second, she emphasized that affordable finance must become available for households, SMEs, and local communities rather than remaining concentrated in large infrastructure investments.

Third, she stated that battery storage, smart grids, and grid modernisation must become central pillars of climate finance, because solar without storage cannot fully deliver energy resilience.

Finally, Senator Rehman stressed that the Global South must be recognised not merely as a recipient of climate assistance, but as an innovator whose practical experience is reshaping the global energy transition.

Senator Rehman said Pakistan has already demonstrated global leadership by advancing its energy transition largely without external financing. She added that solar energy has brought reliable electricity to communities across the country and that Pakistan’s abundant sunshine makes solar one of its most dependable and affordable energy resources.

Describing Pakistan as an innovative and resourceful nation, she said the country’s culture of repairing, reusing, and maximizing the life of equipment rather than discarding it reflects an approach that supports sustainability and circular economic practices.

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She identified microfinance as an effective mechanism for expanding access to clean energy and urged the government to create an enabling environment through targeted subsidies and supportive policies.

Addressing taxation, Senator Rehman said the proposed 18 percent GST on solar equipment would have imposed an unnecessary burden on lower-income households. She noted that the government successfully explained the ground realities to the International Monetary Fund (IMF), warning that taxing solar would have sent the wrong signal to the market and undermined Pakistan’s clean energy transition.

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She further emphasized that many parts of Pakistan remain outside the national grid and urged policymakers to prioritize the energy needs of underserved communities. Referring to the growing spread of desertification in southern Pakistan, she stressed the urgent need to provide electricity for households as well as agricultural machinery.

Calling for a stable and predictable energy market, Senator Rehman said the era of fossil fuels is coming to an end. She maintained that sound public policy must be grounded in local realities and place equity at the center of energy planning.

Concluding her address, Senator Rehman described Pakistan’s forthcoming Electric Vehicle (EV) Policy as potentially transformative, saying the shift away from fossil-fuel-powered engines is not only an environmental imperative but also an economic necessity. She also called for the establishment of GPS-enabled EV charging stations across the country to support Pakistan’s transition towards clean and sustainable mobility.

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