Pakistan Electricity Consumption Up 21% in Just Two Years
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 over 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.
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| Actual Solar Deployment in Pakistan Far Exceeds Official Stats. Source: Ember |
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https://about.bnef.com/insights/clean-transport/new-record-lows-for-battery-prices/
Lithium-ion battery prices dropped again in 2025, with average prices coming down 8% to $108 per kilowatt-hour, according to BloombergNEF’s annual price survey.
China still leads
China’s lead in low battery prices continued in 2025, with average prices in the country dropping 13% to $84/kWh. This is due to a combination of lower input costs, overcapacity, intense price competition and preference for lower-cost lithium iron phosphate (LFP) cells.
Prices in North America and Europe were 44% and 56% higher, which is a big part of why EVs in those regions still cost more than their combustion counterparts. In China, price parity has already been achieved in almost all vehicle segments.
This year, the lowest observed cell and pack prices were just $36/kWh and $50/kWh, respectively. These were for LFP batteries going into stationary storage applications. Similar lows were observed last year, which indicates these price levels are no longer extreme outliers.
BNEF has been doing this price survey for 15 years now, and each year when the top-line number lands, there’s a steady stream of commentary attributing the drop to producers slashing margins. Margins did dip slightly in the first half of this year, but that alone doesn’t fully account for the drop. There’s real innovation and efficiency improvements going on, too, and prices are now down 93% since 2010 in real terms.
Material price rise
Perhaps the most intriguing storyline from the 2025 survey is what didn’t happen.
Cobalt prices rose sharply this year after the Democratic Republic of the Congo introduced export quotas, and lithium ticked up, too. But battery prices didn’t rise. The industry absorbed these shocks through greater LFP adoption, long-term contracts and broader hedging strategies.
This is a markedly different picture from just a few years ago, when higher reliance on nickel manganese cobalt (NMC) cathodes meant a spike in metal prices led directly to batteries bucking their long-term downward trend.
It’s probably too early to celebrate — if elevated metal prices persist, the effect will eventually show up in battery figures — but even this level of resilience to underlying material price changes shows how far the battery industry has come.
The diversification trend is set to continue in the years ahead as sodium-ion battery production capacity is starting to come online, and other new cathode and anode chemistries are approaching commercialization.
Stationary storage costs are plummeting
The average pack price for stationary storage systems dropped to $70/kWh, 45% lower than in 2024. This is the sharpest drop across all segments and makes stationary storage the lowest-priced segment for the first time.
This was largely driven by intense competition in China, where there’s immense overcapacity for battery cells specifically aimed at stationary storage applications. China’s production for stationary storage cells in 2025 is estimated at 557 GWh, over double global installations in the sector.
This energy storage technology is harnessing the potential of solar and wind power—and its deployment is growing exponentially.
https://www.wired.com/story/grid-scale-battery-storage-is-quietly-revolutionizing-the-energy-system/
Making sure there are always enough generators spooled up to send electricity to every single power outlet in the country requires precise coordination. And while the amount of electricity actually used can swing drastically throughout the day and year, the grid is built to meet the brief periods of peak demand, like the hot summer days when air conditioning use can double average electricity consumption. Imagine building a 30-lane highway to make sure no driver ever has to tap their brakes. That’s effectively what those who design and run the grid have had to do.
But what if you could just hold onto electricity for a bit and save it for later? You wouldn’t have to overbuild the grid or spend so much effort keeping power generation in equilibrium with users. You could smooth over the drawbacks of intermittent power sources that don’t emit carbon dioxide, like wind and solar. You could have easy local backup power in emergencies when transmission lines are damaged. You may not even need a giant, centralized power grid at all.
That’s the promise of grid-scale energy storage. And while the US has actually been using a crude form of energy storage called pumped hydroelectric power storage for decades, the country is now experiencing a gargantuan surge in energy storage capacity, this time from a technology that most of us are carrying around in our pockets: lithium-ion batteries. Between 2021 and 2024, grid battery capacity increased fivefold. In 2024, the US installed 12.3 gigawatts of energy storage. This year, new grid battery installations are on track to almost double compared to last year. Battery storage capacity now exceeds pumped hydro capacity, totaling more than 26 gigawatts.
There’s still plenty of room to expand—and a pressing need to do so. The power sector remains the second-largest source of greenhouse gas emissions in the US, and there will be no way to add enough intermittent clean energy to sufficiently decarbonize the grid without cheap and plentiful storage.
The aging US grid is also in dire need of upgrades, and batteries can cushion the shock of adding gigawatts of wind and solar while buying some time to perform more extensive renovations. Some power markets are finally starting to understand all the services batteries can provide—frequency regulation, peak shaving, demand response—creating new lines of business. Batteries are also a key tool in building smaller, localized versions of the power grid. These microgrids can power remote communities with reliable power and one day shift the entire power grid into a more decentralized system that can better withstand disruptions like extreme weather.
If we can get it right, true grid-scale battery storage won’t just be an enabler of clean energy, but a way to upgrade the power system for a new era.
https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0
In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.
Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.
If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.
I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.
https://www.miragenews.com/world-bank-boosts-pakistans-grid-for-reliable-1707915/#google_vignette
WASHINGTON, July 09, 2026 - The World Bank's Board of Executive Directors today approved US$375.9 million in financing for Pakistan's Grid Stability Enhancement Project, to strengthen its national power transmission network under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA). The Project is the first phase of a 10-year program to help Pakistan modernize its electricity transmission network, reduce power outages, and bring more clean energy to homes, businesses, and industries.
"Pakistan's energy challenges are deeply interconnected with its broader economic stability," said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. "By investing in advanced technologies for more resilient transmission infrastructure, this project will contribute to reducing electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan's economy."
Pakistan's electricity network has long struggled with grid instability and transmission bottlenecks that limit the delivery of reliable power and leave clean energy generation underutilized. These constraints affect millions of Pakistanis every day through frequent outages, higher electricity costs, and lost economic opportunities.
The project will install advanced equipment to stabilize the transmission grid and improve the flow of electricity at key substations. This includes Static Synchronous Compensators, or STATCOMs, - at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations. These upgrades will help bring 640 MW of currently curtailed wind energy onto the grid, enabling the full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers. They will also support the integration of approximately 491 MW of planned private sector-led renewable energy projects. Together, these improvements will help Pakistan move toward its national commitment of achieving 60 percent renewable energy in its electricity mix by 2030, in line with the country's Nationally Determined Contribution under the Paris Agreement. Over its lifetime, the project is expected to avoid approximately 832,500 tons of CO₂ emissions each year, or more than 20.8 million tons cumulatively over 25 years.
"A reliable and modern transmission grid is essential for Pakistan's energy future," said Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank's BEST‑PAK program in Pakistan. "As the first phase of the BEST-PAK program, it unlocks a pathway to large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector through targeted infrastructure investments and institutional reforms, creating the conditions for future private capital participation."
The project also advances the Government's ongoing transmission-sector reform agenda, centered on the restructuring of National Transmission & Dispatch Company (NTDC) into specialized successor entities. Drawing on relevant international experience adapted to Pakistan's needs, it supports faster implementation of reforms designed to strengthen governance, accountability, operational performance, and the long-term sustainability of the power sector.
Pakistan is among the countries most exposed to climate-related risks, including river and urban flooding and extreme heat events. The project's design accounts for these realities, by requiring all new installations to meet climate-resilient specifications, including elevated platforms above ground to mitigate flood exposure and equipment designed to operate in temperatures of up to 55°C. These measures will help ensure reliable performance during monsoon seasons and heatwaves.
https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0
Pakistan has quietly become one of the world's most important energy stories.
In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.
Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.
If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.
I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.
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Refrigerator Sales Surge in Pakistan
Pakistan's refrigerator market accounts for ~56% of the country's major household appliances sector. Market penetration sits around 51-56%, with unit sales expected to surge 20% to 339,000 units in CY26. Industry leaders include Haier, Dawlance, Pak Elektron Limited (PAEL), and Waves.
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EV Sales Surge in Pakistan
Electric vehicle adoption in Pakistan is exploding in the two-wheeler sector due to soaring fuel costs and the new Pakistan Accelerated Vehicle Electrification (PAVE) program. Electric-bike registrations surged by 322% year-on-year with cumulative sales reaching 125,511 units by May, capturing over 10% of the monthly two-wheeler market.
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Air conditioner (AC) Sales Surge in Pakistan
Pakistan's air conditioning sector represents a massive market estimated at Rs 190 billion annually. However, in June 2026, the industry experienced a supply glut as delayed summer rains and later heatwaves caused consumer demand to lag behind aggressive manufacturer production targets.
https://www.dawn.com/news/2007197
This improvement was primarily driven by a 6.5pc rebound in Large-Scale Manufacturing (LSM), 8.5pc surge in Small-Scale Manufacturing (SSM), and 6.2pc growth in slaughtering.
The manufacturing and mining sectors are critical to Pakistan’s industrial base and jointly contribute 13.5pc to GDP. Within manufacturing, LSM plays a dominant role, accounting for 67.4pc of the sector and 8.2pc of GDP, followed by SSM and slaughtering, which contribute 2.5pc and 1.4pc to GDP, respectively.
However, the mining and quarrying sector posted a modest growth of 0.4pc in FY26, indicating a gradual recovery in extraction activities.
The survey has highlighted that LSM grew by 6.5pc during July-March 2025-26, indicating a broad-based revival in industrial activity, compared to a 1.9pc contraction in the same period last year, which was primarily a continuation of the contraction that began in FY23 due to import restrictions.
In March alone, LSM expanded by 11.1pc, compared with a contraction of 2.4pc a year ago.
Automobile sector
The survey said that the auto industry showed growth across all sectors during July-March FY26, except for farm tractor sector, where production and sales were down by 8pc and 13pc, respectively. Additionally, wartime conditions have significantly increased costs for local tractor OEMs.
The survey highlighted that the auto sector had seen rising investment and was adopting new technologies, and that the industry was well-positioned to maintain its growth trajectory.
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.The market is fiercely competitive, dominated by local and international manufacturing giants. Key dynamics and brands include:Market Leaders: Top players like Haier, Dawlance, and Pak Elektron (PAEL) command the majority of the market.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.Deep Freezers: Waves retains a ~40% market share, with PAEL holding another 15%.Refrigerator Penetration: Household penetration remains at 51%, leaving substantial long-term growth potential for manufacturers.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.
https://ember-energy.org/latest-insights/the-solarisation-of-pakistans-energy-economy/
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]