Arshad Mahmood Awan
Renewable energy has become an increasingly important topic in recent years. Renewable energy is energy that is generated from natural resources, such as sunlight, wind, water, geothermal heat, and biomass. Unlike fossil fuels, which are finite and have a negative impact on the environment, renewable energy sources are infinite and have little to no impact on the environment.
One of the most significant benefits of renewable energy is its sustainability. Fossil fuels such as coal, oil, and natural gas are finite resources, which means that they will eventually run out. Renewable energy, on the other hand, is infinite. The sun will continue to shine, the wind will continue to blow, and the water will continue to flow. As a result, renewable energy is a sustainable source of energy that will never run out.
Another essential benefit of renewable energy is its impact on the environment. Fossil fuels are responsible for a significant amount of greenhouse gas emissions, which are the primary cause of climate change. Renewable energy sources, on the other hand, produce little to no greenhouse gas emissions, making them a cleaner and more sustainable source of energy. By switching to renewable energy sources, we can reduce our carbon footprint and help slow down the impacts of climate change.
Renewable energy also has the potential to create jobs and boost economic growth. The renewable energy industry is a rapidly growing sector that is creating jobs and driving economic growth around the world. By investing in renewable energy, countries can create new jobs, reduce their dependence on foreign oil, and boost their economy.
Finally, renewable energy offers energy independence. Many countries are heavily dependent on foreign oil to meet their energy needs. This dependence on foreign oil can leave countries vulnerable to supply disruptions, price spikes, and geopolitical tensions. By investing in renewable energy, countries can reduce their dependence on foreign oil and become more energy-independent.
Finally, renewable energy is an essential source of energy that offers many benefits. It is sustainable, environmentally friendly, and has the potential to create jobs, boost economic growth, and offer energy independence. By investing in renewable energy, countries can reduce their carbon footprint, slow down the impacts of climate change, and create a brighter, more sustainable future for future generations.
Despite having an annual oil import bill of $27 billion, renewable energy in Pakistan is struggling to take off, with the most common explanation being the need for more finance. The government has attempted to attract investment in renewable energy, but it has been met with little success. For instance, the Muzaffargarh solar power plant, which is Pakistan’s flagship 600MW solar power plant, failed to attract investors despite the government’s efforts to acquire land, set a tariff, and invite international investors to bid on a capital-friendly Build, Own, Operate and Transfer basis. The challenges faced by the Muzaffargarh solar power plant included [specific challenges], which further highlight the difficulties that renewable energy faces in Pakistan.
While the lack of investment can be attributed to various reasons, such as the tariff being set too low, policy and political instability, and the ballooning circular debt [explain what circular debt is and how it affects the renewable energy sector], the problem is much deeper than Pakistan’s specific economic woes. According to Brett Christophers’ book, The Price is Wrong: Why Capitalism Won’t Save the Planet, renewables are not a profitable business. Although the cost of renewable power is now lower than that of fossil fuels, renewables do not lend themselves to monopoly power and protect high profits like oil and gas do. The technology and market structure of renewables make it difficult for them to replace fossil fuels unless radical changes are made. Capital investments for renewables are heavy upfront, with investors having to wait years, even decades, to turn a profit. Christophers argue that the private sector is unlikely to avert planetary crises unless incentive structures are transformed through extensive regulation or companies are ordered to serve national objectives, like during periods of war.
The solution, while challenging, holds immense potential. A massive public-sector overhaul, coupled with a grassroots political movement shaping the goals of public administration, could be the catalyst for a renewable energy revolution in Pakistan. While Western governments have been trying to attract private finance with subsidies and various ‘treats,’ this approach has proven ineffective. Where subsidies have been reduced, capital has either stopped taking an interest or exited. The rate of renewable installation is at an all-time high, but it is still far from what is needed to meet the two-degree warming limit issued by the Intergovernmental Panel on Climate Change. However, by following the example of China, the only country in the world where private capital is not in charge of energy infrastructure, Pakistan could see a significant shift towards renewables.
In Pakistan, the power sector is in a state of crisis. Electricity demand dropped by almost 10% last year, and the high prices are preventing people from electrifying their homes and running basic appliances. The situation calls for immediate and drastic action. Pakistan needs a massive public-sector overhaul with a grassroots political movement shaping the goals of public administration. While private sector-led development is still the favored approach in Pakistan, Christophers argues that the public sector ownership model provides a better possibility for socially responsive and socially determined development. Cleaning up the mess in the power sector will create winners and losers, but it is essential to ensure that people and the environment are on the winning side. Despite the challenges, renewables have a crucial role to play in Pakistan’s energy mix. Their adoption can be accelerated through a massive public-sector overhaul and a grassroots political movement, offering a brighter, more sustainable future for the country.
Please, subscribe to the YouTube channel of republicpolicy.com
