Pakistan's Solar Revolution Threatened by LNG Contracts

A recent parliamentary forum in Pakistan highlighted the importance of solar power as a cleaner energy source and warned against long-term contracts that could lock the country into take-and-pay obligations.

The dialogue, 'The Sun and the Pipeline: Energy Contracts in an Era of Solar Disruption in Pakistan', organized by the Parliamentary Forum on the Energy and the Economy, emphasized the role of liquefied natural gas (LNG) as a temporary solution to meet energy demands. LNG is considered a halfway house between fossil fuels and solar power, producing carbon dioxide but not permanent pollutants like oil.

The forum's convenor, Dr. Nafisa Shah, warned against further long-term contracts that could raise the circular debt. Solar power, on the other hand, only requires the import of panels until local production capacity is developed. The country has already seen a revolution in its energy profile, with solar power generating 54.75 TWh of electricity annually.

This is equivalent to 1279 million cubic feet a day of gas-fired generation, meaning that not only was gas imported, but oil usage also decreased. The dialogue emphasized the need for integrating solar power into both generation and planning, highlighting its potential as a cheap and non-polluting source of energy.