Pakistan Solar Energy Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 49.68 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Pakistan Solar Energy Market Analysis
The Pakistan solar energy market is estimated to be at 1.30 gigawatts by the end of this year and is projected to reach 9.77 gigawatts in the next five years, registering a CAGR of over 49.68% during the forecast period.
- Over the medium term, favourable government policies, increasing adoption of solar PV systems, the declining price of solar panels and installation costs, and rising environmental concerns about the use of fossil fuels are the factors driving the market's growth.
- On the other hand, the market is expected to be hampered by issues like transmission and distribution losses, a lack of a solidified renewable energy policy, and unpredictability in the continuity of power supply.
- Nevertheless, Pakistan has abundant solar irradiance and receives solar energy almost throughout the year. This factor presents a phenomenal opportunity to exploit solar energy from the most irradiated sites in the country, combined with foreign investments. Additionally, the off-grid supply through micro- and mini-grids to electrify rural communities of the country and the integration of renewable energy sources in generation, transmission, and distribution systems are some factors expected to create opportunities for the market in the future.
Pakistan Solar Energy Market Trends
The Utility Sector is Expected to Dominate the Market
- Solar energy converts energy from sunlight into electricity directly using photovoltaics (PV) or indirectly using concentrated solar power.
- Due to the falling cost of solar modules and the number of upcoming projects, the utility sector will likely be the most significant part of the Pakistani solar energy market over the next few years.
- The Pakistani government has established lofty objectives like 30% of the nation's power will come from renewable sources by 2030. Through the Alternative Energy Development Board, the government is attempting to construct solar power facilities nationwide to meet these objectives.
- As of 2022, Pakistan's total solar installed capacity was recorded at 1.24 GW, with an increase of 17% compared to 2021. The country's government has proposed several efforts to raise the percentage of solar energy in the country.
- In September 2022, the Pakistani government approved the National Solar Energy Initiative to produce 10,000 megawatts (MW) of electricity through solar energy projects in the following months. The initiative aims to reduce the import bill of costly diesel and furnace oil, thus creating demand in the country's utility sector. Hence, the government will likely develop more utility-scale projects, increasing the renewable energy mix in achieving its targets.
- Based on these factors, the utility sector will likely be the most significant player in the Pakistani solar energy market over the next few years.
Supportive Government Policies are Driving the Market Demand
- The solar energy initiative would help government buildings, different sectors, and tube wells shift from diesel to solar power. The power plants operating on diesel, coal, and furnace oil will be partially replaced too.
- As of 2022, Pakistan's total solar installed capacity was recorded at 1.242 GW, with an increase of 15.4% compared to 2021. The country's government has proposed a number of efforts to raise the percentage of renewable energy in the country
- In September 2022, the Pakistani government signed the Green Framework Engagement Agreement with Denmark to create stronger collaboration in areas such as climate change mitigation and adaptation and a sustainable green transition, which is expected to boost solar power in the country.
- Solar power is trending toward significant growth as the government targets at least 1 million customers and adds approximately 3,000 MW of solar power through net metering.
- Thus, considering the government initiatives and policies, the Pakistani solar energy market is expected to grow further during the forecast period.
Pakistan Solar Energy Industry Overview
The Pakistani solar energy market is moderately fragmented. Some of the major players in the market (in no particular order) include Reon Energy Limited, Alpha Renewables (SMC-Pvt) Ltd, Zonergy, Shams Power Limited, and Yello Door Energy.
Pakistan Solar Energy Market Leaders
Zonergy
Yellow Door Energy
Alpha Renewables (SMC-Pvt) Ltd
Shams Power Limited
Reon Energy Limited
*Disclaimer: Major Players sorted in no particular order
Pakistan Solar Energy Market News
- In May 2023, the Sindh government announced its plan to transition major provincial hospitals to solar power as part of its broader solar power initiative.
- In May 2023, the Provincial Minister of Sindh for Energy, Imtiaz Ahmed Sheikh, inaugurated a solar power park at the Karachi Press Club. This 60-KV solar power project will meet 90% of the press club's power requirements.
Pakistan Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Solar Energy Installed Capacity and Forecast, in MW, till 2028
4.3 Government Policies and Regulations
4.4 Recent Trends and Developments
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Favourable Government Policies
4.5.1.2 Increasing Adoption of Solar PV Systems
4.5.2 Restraints
4.5.2.1 Transmission and Distribution Losses
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 BY END-USER
5.1.1 Residential
5.1.2 Commercial
5.1.3 Utility
6. COMPETITVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Reon Energy Limited
6.3.2 Alpha Renewables (SMC Pvt) Ltd
6.3.3 Shams Power Limited
6.3.4 Zonergy
6.3.5 Yello Door Energy
6.3.6 JinkoSolar Holding Co. Ltd
6.3.7 Canadian Solar Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Pakistan's Abundant Solar Irradiance
Pakistan Solar Energy Industry Segmentation
Solar energy is the heat and radiant light from the sun that can be harnessed with technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating).
The Pakistani solar energy market is segmented by end user into residential, commercial, and utility. For each segment, market sizing and forecasts have been done based on installed capacity (MW).
| BY END-USER | |
| Residential | |
| Commercial | |
| Utility |
Pakistan Solar Energy Market Research FAQs
What is the current Pakistan Solar Energy Market size?
The Pakistan Solar Energy Market is projected to register a CAGR of 49.68% during the forecast period (2024-2029)
Who are the key players in Pakistan Solar Energy Market?
Zonergy, Yellow Door Energy, Alpha Renewables (SMC-Pvt) Ltd, Shams Power Limited and Reon Energy Limited are the major companies operating in the Pakistan Solar Energy Market.
What years does this Pakistan Solar Energy Market cover?
The report covers the Pakistan Solar Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Pakistan Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Solar Energy in Pakistan Industry Report
Statistics for the 2024 Pakistan Solar Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Pakistan Solar Energy analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
