Pakistan needs to accelerate coal transition, clean cooking to meet climate, energy goals: experts

ISLAMABAD, Jul 02 (APP): Pakistan needs to adopt a comprehensive strategy to repurpose underutilized coal-fired power plants, scale up clean cooking technologies and mobilize climate finance to ensure a just and economically viable transition towards cleaner energy, said experts at a policy dialogue.

The policy dialogue, titled ‘Beyond Fossil Fuels Pathways for a Clean Energy Transition’, was jointly organized by the Sustainable Development Policy Institute (SDPI) and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) here on Thursday.

The dialogue featured the launch of two research studies on coal-fired power plant repurposing and clean cooking solutions.

Welcoming the participants, SDPI Deputy Executive Director (Research) Dr Sajid Amin Javed said clean cooking remains largely absent from Pakistan’s policy discourse despite its significant contribution to climate action, public health, women’s welfare, forest conservation and energy security.

He called for national and provincial strategies to scale up clean cooking initiatives and proposed allocation of part of the recently enhanced climate levy to support electric cooking technologies through climate finance mechanisms.

Chief of UNESCAP Energy Division Section Michael Williamson described clean cooking as a core energy issue that simultaneously addresses health, gender equality, social justice, decarbonization and energy efficiency.

He noted that rapidly falling costs of renewable energy, battery storage and electric cooking technologies had created new opportunities for coal phase-down across Asia-Pacific. However, he said, Pakistan’s relatively young coal fleet required innovative repurposing approaches that balance technical, economic, social and political considerations while supporting the country’s climate commitments and reducing circular debt.

SDPI’s Research Fellow Dr Khalid Waleed said Pakistan’s coal consumption had increased following the Iran-US conflict, but warned that growing environmental compliance requirements, including the Carbon Border Adjustment Mechanism (CBAM), could undermine the country’s export competitiveness if industries continue relying on coal-powered supply chains.

He stressed the need for early retirement and repurposing of coal-fired power plants while promoting green manufacturing, renewable-powered data centres and battery energy storage systems to attract sustainable investments under CPEC 2.0.

 SDPI’s Research Associate Zainab Babar said Pakistan’s coal fleet, averaging only eight to nine years in age, remains significantly underutilized while imposing a heavy financial burden through capacity payments.

She said that coal plants accounted for 18.9 per cent of national capacity payments during FY2025 despite operating at utilization rates of only 27 to 51 per cent, with total capacity payments reaching US$7.69 billion. She added that after accounting for environmental and health externalities, locally mined coal becomes approximately 2.5 times more expensive than imported coal.

She said the study identifies five potential repurposing pathways for Pakistan’s coal assets: solar photovoltaic systems, battery energy storage systems (BESS), synchronous condensers, green data centres, and green hydrogen and ammonia production. Based on a multi-criteria assessment, battery energy storage systems emerged as the most suitable option, followed by synchronous condensers and solar photovoltaic installations. A hybrid model combining solar, battery storage and synchronous condensers was identified as the most practical solution for Pakistan’s grid conditions.

According to the study, repurposing coal plants with battery storage could generate significant long-term economic benefits, including lower electricity costs, avoided generation investments and improved grid reliability, while solar conversion could reduce capital expenditure by up to 97.6 per cent, save an estimated US$34 million in imported fuel costs and avoid nearly US$5 billion in future capacity payments.

On clean cooking, UNESCAP’s Anis Zaman highlighted affordability, financing and after-sales services as the main barriers to wider adoption. He said carbon markets and cooperation under Article 6 of the Paris Agreement could provide new financing opportunities. He noted that while Pakistan’s access to clean cooking is projected to increase from 49.3 percent in 2021 to 59.2 percent by 2030, nearly 18.3 million households are still expected to remain without access unless implementation is accelerated.

Presenting findings from the study on electric cooking in Khyber Pakhtunkhwa, Engineer Ubaid ur Rehman Zia, Head of SDPI’s Energy Unit, said extensive household surveys and field testing found induction stoves to be effective for many local dishes, although preparing traditional flatbreads remained a challenge because of uneven heat distribution.

He stressed the need for community awareness, culturally appropriate appliance design, women’s participation in policy planning and improved electricity access to support wider adoption of electric cooking technologies.

During the panel discussion, former managing director of Private Power and Infrastructure Board, Shah Jahan Mirza, said Pakistan should pursue a hybrid approach combining negotiated restructuring, selective buyouts and repurposing of coal plants rather than relying on a single solution. He underlined the need for dedicated government institutions, international climate finance and close engagement with Chinese investors under CPEC to facilitate transition.

Power Planning and Monitoring Company representative Kamil Maqsood said Pakistan’s power planning is increasingly incorporating rapid solar expansion, with clean energy expected to account for nearly 90 per cent of the electricity mix by 2035. He added that battery storage, advanced metering infrastructure and grid modernization would play a critical role in maintaining system stability.

Executive Director of CPEC Centre of Excellence Dr Hasnath Shah urged policymakers to frame discussions around a “coal-to-clean transition” rather than “coal phase-out”, suggesting the establishment of a joint Pakistan-China working group to transform existing coal infrastructure into green industrial assets under CPEC 2.0. He also highlighted opportunities to leverage Chinese green finance institutions, the Silk Road Fund and multilateral development banks to support the transition.

Concluding the dialogue, SDPI Deputy Executive Director (Policy) Dr Shafqat Munir said Pakistan must embrace a policy transformation to accelerate its transition from fossil fuel to cleaner energy alternatives. He observed that changing public behaviour and cooking practices would be as important as introducing new technologies, describing the newly launched e-cookbook as a practical tool for households to adopt cleaner cooking methods.

Representatives from National Energy Efficiency and Conservation Authority, Ministry of Planning, Development, and Special Initiatives, academia and development organizations also stressed the need for customized provincial policies, appliance standardization, stronger awareness campaigns, improved implementation mechanisms and greater participation of rural women to accelerate Pakistan’s clean cooking transition.