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Policy & Targets:

The Government has approved a new ARE Policy 2019. The policy aims at creating a conducive environment supported by a robust framework for the sustainable growth of ARE Sector in Pakistan. The GOP’s strategic objectives of energy security, affordability of electricity, availability for all, environmental protection, sustainable development, social equity and mitigation of climate change will further be harnessed under the ARE Policy 2019.

Salient features of the ARE Policy 2019 are as follows:

  • The policy has an expanded scope encompassing all alternative and renewable energy sources, competitive procurement and addresses areas like distributed generation systems, off-grid solutions, B2B methodologies and rural energy services.
  • The ARE Policy 2019 is target oriented and sets a target of achieving 20% on-grid capacity from ARE technologies by 2025 and 30% capacity by 2030.
  • The ARE Policy 2019 envisages development of large scale ARE projects in all parts of the country through active participation of the provinces.
  • Indicative Generation Capacity Expansion Plan (IGCEP) outputs will form the basis of all on-grid capacity procurements.
  • The most significant feature of the policy is that it makes a transition from the traditional methods of procurement based on cost plus and upfront tariffs to competitive bidding. All new ARE projects will be developed through competitive bidding based on the outputs of Indicative Generation Capacity Expansion Plan (IGCEP).


Investment Opportunities:

  • Participation in competitive bidding for large scale ARE based power generation projects.
  • Development of power generation projects based on new technologies on unsolicited mode.
  • Local manufacturing of RE equipment.
  • Private sector participation and investment in off-grid and distributed generation (net metering, B2B sales, mini/micro grid systems, Localize Energy Systems etc.).


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