Pakistan unveils $55bn power plan to go green, cut fuel imports

ISLAMABAD: Pakistan has launched an ambitious $55 billion plan to transform its power sector over the next decade. The strategy aims to meet rising demand through hydropower, nuclear, and renewables, while phasing out the country’s dirtiest fuels.

The Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, prepared by the Independent System & Market Operator and submitted to energy regulator Nepra, outlines a major shift in the energy mix. By 2035, 61pc of electricity is to come from renewable sources—mainly hydro, solar, and wind. Hydropower will remain the largest contributor at 34%, while solar is expected to rise to 18%. Conventional thermal sources will drop to 39pc, with furnace oil fully eliminated.

The plan anticipates annual demand growth of 4.4pc, with peak load rising from 27,000MW in 2024 to over 43,000MW by 2035. To meet this, the blueprint calls for a broad expansion of generation capacity. It includes new dams, solar parks, wind corridors and nuclear power plants. It also promotes demand-side management to improve efficiency and adds 8,120MW through net-metered rooftop solar systems. Battery storage has been included to stabilise variable renewable output. Inefficient plants will be gradually retired.

A long-delayed 500kV transmission link is also part of the plan. This line will allow up to 2,050MW of power to be transmitted from the national grid to K-Electric by 2028. It will end the company’s isolation and enable the use of renewable energy from Sindh and Balochistan.

The government claims the plan will lower costs and reduce emissions. However, energy analysts caution that key risks remain. These include financing shortfalls, project delays, environmental challenges, and persistent circular debt. Without meaningful reforms in transmission and governance, they warn, the IGCEP could become yet another unfulfilled roadmap.