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Aluchistan, which has abundant coal and natural gas reserves as well as vast renewable energy potential, is also the province with the lowest per capita energy consumption. Only 56.1 percent of the province has access to grid electricity. Its unique terrain and low population density make grid expansion commercially unattractive and technically challenging. Even where grid access is available, the reliability of electricity supply is poor. Due to old infrastructure there are frequent outages and high voltage fluctuations. Transmission and distribution losses are 26.72%.
An effective solution that harnesses the province’s renewable energy potential – more than 40 percent of Pakistan’s total solar potential – is the microgrid. Microgrids are local energy systems that can operate independently or in conjunction with the main power grid. These include distributed energy resources, energy storage systems and advanced control systems that manage energy distribution. Microgrids offer several advantages over traditional centralized grids, including improved flexibility, reduced transmission losses and the ability to efficiently integrate different renewable energy sources.
Microgrids, where installed effectively, can meet not only regional needs; Surplus electricity can also be supplied to the national grid. They can be effectively integrated with Balochistan’s major industry, especially the mining sector in remote areas like Chagai. Many small-scale mines and newly issued mining leases require energy to start their operations. Microgrids of 5 to 10 MW can meet their immediate needs.
As mining operations expand, energy demand is expected to increase from 63 MW to 226 MW by 2028. The development of large microgrids supported by solar and wind power will then become important. According to a World Bank report, Balochistan Renewable Energy Development, such systems can reduce electricity costs by up to 50 percent for large mining projects such as Sendak and Rekodak and have a significant cost advantage over conventional fuels (30- 60 percent) can offer.
Realizing the distribution potential of renewable energy resources through micro-grids in Balochistan will reduce Pakistan’s need for electricity imports. Potential energy surpluses can be exported to other provinces or internationally.
A feasibility study conducted by the National Engineering Services Pakistan to solarize tubewells in Balochistan concluded that installing distributed PV solutions such as microgrids can significantly improve power supply and fuel efficiency. Consumption and any additional costs borne by farmers can be reduced to about $0.06. /kWh This means that farmers will be able to cover the cost of PV supply.
However, microgrid development faces a few challenges. These include high initial capital costs, technical and logistical difficulties in remote areas and the need for ongoing maintenance and management. The complex regulatory framework under the National Energy Policy has stalled $6 billion in proposals, with securing financing a major hurdle.
Public-private partnerships offer a possible solution. However, lengthy approval processes – projects take six months to a year to finalize – and the focus on large projects make them less effective for microgrid initiatives. Regulatory and institutional barriers, such as the absence of a clear off-grid framework and limited local capacity, also contribute to the perception of microgrids as a high-risk investment.
Along with security concerns in the region, these factors contribute to donor reluctance due to the lack of an enabling environment to operate. This reluctance limits funding opportunities and complicates microgrid development, as donors are reluctant to invest in areas where the operating environment is seen as unstable or challenging.
Community involvement is key to effective implementation of microgrid solutions in challenging regions like Balochistan. By engaging and educating beneficiaries and stakeholders from the conceptual stage to implementation and maintenance, communities are more likely to realize tangible benefits from the system.
This should increase their willingness to pay for and support the project, provided they understand the technology being installed and are involved in the decision-making process. Best practices in Pakistan, such as the installation of solar mini-grids by the Pakistan Poverty Alleviation Fund in disadvantaged areas such as Swat, Lakki Marwat and Kirk, demonstrate the success of a community-based, community-based development approach at all stages of the project. is .
The biggest challenge, financing, requires innovative solutions. Some PPPs are supported by mechanisms such as the Viability Gap Fund, which can make projects viable by helping private investors recover losses. However, the current public-private partnership authority framework is a lengthy process, often taking six months to a year to complete. To encourage private sector participation and expedite project implementation, the government should streamline the approval and negotiation stages of the PPP process by setting clear timelines and reducing bureaucratic hurdles.
For private investors who typically seek larger, more secure opportunities, a cluster approach that brings together smaller microgrid projects should be encouraged. By tying multiple projects together, the overall scale and financial security increases, making these investments more attractive to private sector players, who are wary of engaging in smaller, discrete projects.
Development partners, multilateral development banks and international climate finance institutions can also play a key role in securing concessional financing for microgrid projects, particularly in off-grid areas. Finally, community mobilization efforts, including the adoption of innovative financing models, such as prepaid systems, rent-to-own or rent-to-own schemes, and community ownership through equity stakes, can improve both community participation and financial stability. can increase
Given the technical and managerial challenges that communities may face in implementing and sustaining microgrid projects, a comprehensive capacity-building strategy should not only be developed but integrated into project budgets. Should go. This includes allocating funds for community training and awareness programs, building on the successful models of organizations such as PPAF and the Aga Khan Rural Support Program, whose community-based approach has improved the viability and sustainability of microgrid projects. has proven
Investment in this sector is largely limited due to the lack of a clear policy framework. While there are some policy documents at the federal level, such as a draft renewable energy policy and rural electrification strategy, Balochistan lacks a provincial-level policy for renewable energy, decentralized power generation and rural electrification. is
It is critical for the provincial government to establish a policy document that sets initial goals and objectives to guide private investors and other stakeholders in investing and scaling up renewable energy projects in the region. There are donor coordination platforms in Gilgit-Baltistan and Khyber Pakhtunkhwa. However, no such platform is available in Balochistan. The Government of Balochistan should establish a dedicated donor coordination platform to facilitate effective donor engagement.
Decentralized microgrids are an effective solution to the energy needs of regions like Balochistan that face the challenges of low population density, aging infrastructure and limited grid access. By focusing on innovative financing, regulatory support and community engagement, Balochistan can overcome these barriers and effectively exploit its renewable resources.
Implementing these strategies can significantly improve energy access and security in Balochistan, meeting the critical need for electricity for 64 percent of its population and 88 percent of people with modern access to electricity. Energy availability can be improved for those who lack reliable heating and cooking arrangements.
The author is Research Assistant at Sustainable Development Policy Institute, Islamabad.
