Islamabad (Commerce Desk) According to the annual report Boom and Bust 2026 by Global Energy Monitor, the use of solar energy in Pakistan has increased significantly, raising new questions about the country’s power system and the financial stability of the national grid.
The report states that in 2025, Pakistan witnessed a sharp rise in decentralized solar installations, with an estimated 25 percent of the country’s total electricity consumption now being met through solar sources, mostly via off-grid systems.
It also highlights that despite the expansion of renewable energy, coal-based power projects in the country remain operational, and there is no clear retirement plan for coal-fired power plants.
Energy experts say independent power producers relying on coal are seeking extensions of long-term contracts, which could increase concerns about a costly and less flexible energy system in the future.
The report further notes that Pakistan is currently facing a major energy policy challenge, where rapidly growing cheap renewable energy is competing with pressure to maintain traditional fossil-fuel-based systems.
Experts believe that in the coming years, the biggest challenge for Pakistan will be balancing energy demand, cost, and environmental impact while ensuring system stability.