LAHORE: In 2013, a joint study by GIZ Germany and the All Pakistan Textile Mills Association (APTMA) painted a promising picture of biomass potential in Punjab’s eight major textile-industry districts. It estimated that nearly 980MW of electricity could be generated from agricultural residues that were otherwise wasted.
Today, the national outlook reveals both a striking expansion of biomass energy prospects and the challenges of harnessing them effectively. Recent studies confirm that Pakistan’s biomass potential far exceeds the earlier provincial projections. A comprehensive 2022 review conservatively estimated that the country could generate up to 20,709MW of bio-electricity and 12,615 million cubic metres of biogas annually from agricultural residues, livestock manure, and municipal organic waste.
Supporting these findings, the Pakistan Biomass Cluster highlights daily national generation: 225,000 tonnes of crop residue, 50,000 tonnes of municipal solid waste, and 1 million tonnes of animal manure -- translating into biogas potential of 8.8 billion to 17.2 billion cubic metres annually (55-106 TWh).
Sugarcane bagasse remains Pakistan’s most commercially exploited form of biomass. At present, bagasse-based generation contributes about 5,700GWh annually, roughly 6.0 per cent of total electricity production. Its theoretical capacity alone could reach between 2,000MW and 3,000MW.
According to the United Nations Industrial Development Organisation (UNIDO) (2016), around 46.9 million tonnes of residual biomass (crop, agro-industrial and wood residues) were available nationwide. However, actual utilisation has lagged behind this potential. Only 259MW of bagasse power is currently operational across eight sugar-mill projects.
A further 563MW of biomass plants are under construction, while projects totalling 314.5MW are in development with Letters of Intent (LoI) issued by the Alternative Energy Development Board (AEDB). These could raise bagasse capacity to around 1,138 MW in the near future. Wikipedia’s latest data (September 2024) shows that 249MW of bagasse and biomass capacity is currently connected to the grid.
The AEDB has also issued LOIs for new projects -- including a 12MW agro-waste power plant in Sindh, another 12MW facility in Jhang, and a 9MW biogas plant in Matli, Sindh.
Beyond sugar mills, biogas from manure and organic waste could provide cost savings for agriculture-based SMEs, with some private dairy farms already generating and exporting electricity.
However, significant hurdles remain. These include the dispersed and seasonal nature of feedstock -- with the collection of wet agricultural residues or manure across vast rural areas presenting logistical and storage challenges.
Technological constraints also weigh heavily. Large-scale biomass gasification and biogas infrastructure remain scarce, with only 92 biogas plants currently operational, producing a meagre 790 kW. Financial institutions lack tailored products or risk assessment tools for biomass projects, further slowing investment. In the absence of incentives such as feed-in tariffs, tax breaks, or streamlined licensing frameworks, private-sector interest has been muted. Many producers, particularly in remote areas, also struggle to connect to the national grid, limiting opportunities to sell surplus power.
As of March 2025, Pakistan’s installed electricity capacity stood at 46,605MW, with renewables (excluding large hydropower) accounting for just 5,680MW (12.2 per cent). Only about 249MW currently comes from bagasse and biomass.
In this context, even a modest expansion of biomass capacity -- say to 1,500-2,000MW -- would significantly strengthen the renewable share and improve energy resilience. From the GIZ-APTMA-era estim…