Senator Sherry Rehman Urges Policy Reforms to Support Solar Revolution
Islamabad, January 30, 2025: Pakistan’s solar energy landscape is undergoing a seismic shift, with a growing number of communities and businesses embracing solar power, bypassing traditional grid systems. This shift, fueled by both economic need and environmental awareness, is propelling the country to the forefront of South Asia’s renewable energy market.
At the Great Solar Rush Conference 2025, hosted by Renewables First and the Pakistan Solar Association, key industry leaders and policymakers gathered to discuss the nation’s unprecedented solar adoption and the necessary steps to ensure its future success.
Senator Sherry Rehman, in her opening address, underscored the need for policy reforms to support this grassroots energy revolution. “Pakistan has emerged as a market leader in South Asia for solar adoption,” she said. “We must ensure that we enable, not disable, this revolution.” She called for urgent alignment between national policy and the growing demand for solar energy, warning that failure to integrate solar into the national energy strategy could jeopardize both energy security and economic stability.
Zeeshan Ashfaq, CEO of Renewables First, explained that the surge in solar adoption was primarily driven by economics. “Millions of people are turning to solar PV panels—not because of climate change or government policy—but because it simply makes sense,” he noted. Households, farmers, and businesses alike are seeking cheaper, more reliable energy solutions as Pakistan’s traditional grid continues to struggle with high costs and instability.
Despite the enthusiasm for solar, the market faces a critical hurdle: reliance on imported solar equipment. Ali Majid, General Manager of Longi, emphasized the need for Pakistan to boost local manufacturing to capitalize on the solar boom. He proposed that public sector projects use domestically produced solar panels, which could incentivize international investment in local assembly plants.
Waqas Moosa, Chairman of the Pakistan Solar Association, highlighted that Pakistan’s solar adoption rate is among the highest globally. However, he cautioned that inconsistent policy changes—such as potential reductions in net metering—could destabilize the market. With the rapid rise of solar, grid integration has emerged as a pressing challenge. Syed Faizan Ali Shah, Member of the Prime Minister’s Solarization Committee, revealed that Pakistan’s solar expansion has already reduced daytime electricity demand by 10 TWh annually, creating imbalances in the national grid.
In his keynote, Dr. Fiaz Chaudhary, Chairman of NTDC, pointed out the outdated nature of the country’s energy regulations and infrastructure. He stressed the need for smarter grid solutions to cope with the surge in decentralized energy generation. “Our system was never designed for flexible, renewable generation,” he said. He called for the urgent integration of smart meters and distributed energy controls to maintain grid stability.
The conference also spotlighted the need for market reforms to facilitate a competitive electricity sector. Salman Amin, a Member of the Competition Commission of Pakistan, argued that creating a competitive electricity market through the Competitive Trading Bilateral Contract Market (CTBCM) would lead to better resource allocation, innovation, and cleaner energy solutions. However, he also warned that delays in power sector reforms had left Pakistan trailing global markets by over 30 years.
Industry representatives agreed that lowering high wheeling charges within the CTBCM model would encourage market participation, but acknowledged that challenges remain, particularly in terms of outdated policies and vested interests in the power sector.
Dr. Nafisa Shah, a Member of the National Assembly, called for gradual liberalization of the power market while addressing the complexities of past contracts and capacity payments. She stressed the importance of balancing market reforms with grid improvements to ensure a fair transition.
Closing the event, Sonia Dunlop, CEO of the Global Solar Council, applauded Pakistan’s remarkable solar growth, noting, “Pakistan was the market that surprised so many around the world,” adding that the country’s contribution to the global solar expansion is significant.
The message from the conference was clear: Pakistan’s solar revolution is unstoppable, but for it to thrive long-term, the country must modernize its energy policies, infrastructure, and market systems. The call for a smart, decentralized, and competitive energy sector has never been more urgent—Pakistan’s energy future depends on it.
