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illuminem summarizes for you the essential news of the day. Read the full piece on World Economic Forum or enjoy below:
🗞️ Driving the news: Pakistan is experiencing a solar power boom, driven by falling solar panel costs and skyrocketing electricity tariffs, with solar adoption reaching record levels across industrial, residential, and agricultural sectors
• The country imported 13GW of Chinese solar modules in the first half of 2024, forecasted to reach 22GW by year-end, making it the world’s sixth-largest solar market
• However, this rapid shift toward renewables highlights risks for the national grid, which faces declining demand and mounting financial pressures
🔭 The context: Pakistan's electricity grid struggles to meet demand, with over 40 million people still lacking access to electricity
• High costs and unreliable grid performance have led 40-50% of industries to adopt captive power solutions
• Global climate policies, like the EU’s Carbon Border Adjustment Mechanism, and competitive pressures from export markets further incentivize clean energy adoption in Pakistan
🌍 Why it matters for the planet: Pakistan’s transition underscores the dual opportunities and challenges of renewable integration in emerging markets
• Solar power reduces carbon emissions and offers energy security but exposes structural weaknesses in traditional grid systems
• The country's experience highlights the need for grid modernization to manage distributed renewables effectively and avoid economic disruptions
⏭️ What's next: Pakistan must modernize its grid with AI-driven tools, battery storage, and digital metering while fostering a competitive energy market
• Proactive policies, such as credit facilities for underserved communities and incentives for battery use, are essential to sustain the transition
• Global grid operators can learn from Pakistan’s experience to avoid similar pitfalls in other markets
💬 One quote: “Can Pakistan and other emerging markets realistically transition entirely to renewable energy without jeopardizing the stability of their national grids?” — World Economic Forum analysis
📈 One stat: Solar imports in Pakistan reached 13GW in the first half of 2024, projected to hit 22GW by year-end, making it the sixth-largest solar market globally
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