Pakistan Electricity Consumption Up 21% in Just Two Years

by Riaz Haq

Jun 30

Pakistan is experiencing soaring demand for electricity across all of the sectors of its economy. The new demand is being met by rapidly growing deployment of distributed solar, estimated at 38 GW as of June, 2025. In 2025, 44% of solar deployment was residential, followed by industry (26%), agriculture (21%) and commercial users (9%). The expansion of distributed solar has enhanced electrification across the economy, lifting Pakistan's electrification rate to 21.7% in FY2025 from 17% in FY2023, close to the global average of 22%. This surge to 200 terawatt-hours of electricity is not reflected in official data, according to a report by Ember Energy titled "The solarization of Pakistan's energy economy". 


The solar energy revolution in Pakistan is led by consumers. Driven by soaring electricity costs, unreliable grid infrastructure, and cheap imported solar panels, millions of households and businesses have installed rooftop solar. This rapid transition to solar has transformed the country's energy landscape.  According to the report, Pakistan’s total electricity demand increased by 33 terawatt-hours (TWh) between fiscal years 2023 and 2025. Distributed solar generation alone grew by 36 TWh during the same period, making it the primary driver of electricity demand growth and offsetting declines elsewhere in the power system.


"Pakistan has a thirst for energy, and solar is providing it," said Dave Jones, Chief Analyst at Ember. "Distributed solar is so fast and cheap to build, that it is actually driving up electricity demand."  The newly added solar capacity has saved more than US$12 billion in oil and gas imports by February, 2026, Ember said, as well as enabling growth in the agriculture, industrial and commercial parts of Pakistan’s economy.

Actual Solar Deployment in Pakistan Far Exceeds Official Stats. Source: Ember

The report shows that net metered solar is a “minority” of Pakistan’s current capacity, with far more behind-the-meter and off-grid capacity than registered net metering solar.   Distributed solar has ramped up rapidly. In just two years, 27 GW of distributed solar was installed, the same amount of operating coal, gas and oil plants built in Pakistan ever. Distributed solar is also cheaper — residential solar with a medium battery makes electricity at around PKR 20/KWh, half the PKR 40 price for grid electricity. The government statistics only capture the net-metered part of the solar electricity. 

During the first nine months of 2025-26 fiscal year, Pakistan’s energy sector saw steady improvement, with hydro, renewable and nuclear sources overtaking fossil-fuel-based thermal power in installed generation capacity for the first time, according to the Pakistan Economic Survey for 2025-26. 
Related Links:

Load Previous Comments

  • Riaz Haq

    Pakistan’s Rs 328 billion major appliance market is recovering rapidly, led by Air Conditioners (23% share, ~190B) and Refrigerators (56%). Driven by rising temperatures, expanding solar power, and economic stability, PAEL projects 20% growth in CY2026, with sales expected to exceed 105,000 ACs and 339,000 refrigerators. [1, 2, 3, 4]
    The market is fiercely competitive, dominated by local and international manufacturing giants. Key dynamics and brands include: [1, 2, 3]
    • Market Leaders: Top players like Haier, Dawlance, and Pak Elektron (PAEL) command the majority of the market. [1]
    • Air Conditioners: This is the fastest-growing major appliance segment. Waves Corporation is aggressively expanding back into this category using Completely Knocked Down (CKD) strategies to avoid import bottlenecks. [1]
    • Deep Freezers: Waves retains a ~40% market share, with PAEL holding another 15%. [1, 2]
    • Refrigerator Penetration: Household penetration remains at 51%, leaving substantial long-term growth potential for manufacturers. [1]
    • Solar Integration: The rise in distributed solar generation is driving notable shifts in appliance demand, allowing consumers to efficiently run cooling appliances (fans, ACs) during daylight hours. [1]

    Jul 11

  • Riaz Haq

    India’s electrification rate is nearly 20%, comparable to China’s level in 2012, and is growing relentlessly by around five percentage points per decade.

    https://ember-energy.org/latest-insights/indias-electrotech-fast-tr...

    Jul 11

  • Riaz Haq

    Pakistan's electricity generation mix has rapidly shifted toward renewable energy, driven by a massive distributed solar boom. As of recent 2025–2026 data, grid-connected and behind-the-meter solar accounts for roughly 25-28% of the country's generation. Overall, low-carbon and zero-emission sources now make up over 55% of Pakistan's total generated electricity. [1, 2, 3]

    https://ember-energy.org/latest-insights/the-solarisation-of-pakist...

    The breakdown of Pakistan's electricity generation includes the following sources:
    Solar & Distributed Renewables: ~25% to 28%
    Hydropower: ~24% to 29%
    Fossil Fuels (Thermal): ~35% to 40% (comprising a mix of imported coal, domestic coal, natural gas, and furnace oil)
    Nuclear Power: ~9% to 11%
    Wind: ~3% to 5% [1, 2, 3, 4, 5]
    Key Trends:
    The Solar Transition: Over the last two years, national electricity demand surged by 21%, with the entirety of this growth met by behind-the-meter residential and commercial solar installations. This explosive growth—totaling an estimated 38 GW of distributed solar capacity—has lowered daytime reliance on the national grid. [1]
    Long-Term Goals: Under its clean energy transition plan, Pakistan aims for 58% of its overall electricity generation to stem from renewable sources by 2030. [1]

    yesterday