Market Size of Pakistan Solar Energy Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR (2024 - 2029) | 46.55 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Pakistan Solar Energy Market Analysis
The Pakistan Solar Energy Market size in terms of installed base is expected to grow from 1.41 gigawatt in 2024 to 9.53 gigawatt by 2029, at a CAGR of 46.55% during the forecast period (2024-2029).
- Over the medium term, increasing adoption of solar PV systems, the declining price of solar panels and installation costs, and rising environmental concerns about the use of fossil fuels are the factors driving the market's growth.
- On the other hand, the market is expected to be hampered by issues like transmission and distribution losses, a need for a solidified renewable energy policy, and unpredictability in the continuity of power supply.
- However, Pakistan has abundant solar irradiance and receives solar energy almost yearly. This factor presents a phenomenal opportunity to exploit solar energy from the most irradiated sites in the country, combined with foreign investments. Additionally, the off-grid supply through micro- and mini-grids to electrify rural communities of the country and the integration of renewable energy sources in generation, transmission, and distribution systems are some factors expected to create opportunities for the market in the future.
Pakistan Solar Energy Industry Segmentation
Solar energy is the heat and radiant light from the sun that can be harnessed with technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating).
The Pakistani solar energy market is segmented by end users (residential, commercial, and utility). For each segment, market sizing and forecasts have been done based on installed capacity (MW).
Pakistan Solar Energy Market Size Summary
The solar energy market in Pakistan is poised for significant expansion, driven by the increasing adoption of solar photovoltaic systems and the declining costs of solar panels and installation. The country's abundant solar irradiance presents a unique opportunity to harness solar energy, particularly in off-grid areas through micro- and mini-grids. Despite challenges such as transmission losses and the need for a robust renewable energy policy, the market is expected to benefit from foreign investments and government initiatives aimed at integrating renewable energy sources into the national grid. The utility sector is anticipated to become the dominant force in the solar energy market, supported by various projects and government objectives to increase the share of renewable energy in the national power mix.
The Pakistani government has set ambitious targets to generate a substantial portion of the country's power from renewable sources by 2030, with solar energy playing a crucial role. Initiatives like the National Solar Energy Initiative and the development of large-scale solar PV projects are expected to enhance the renewable energy capacity significantly. The market is moderately fragmented, with key players such as Reon Energy Limited, Alpha Renewables, and Zonergy contributing to the sector's growth. Recent projects, including the construction of utility-scale solar power plants and the introduction of a solar PV auction plan, underscore the government's commitment to expanding solar energy infrastructure. These efforts are likely to increase the share of solar energy in Pakistan's renewable energy mix, aligning with the country's energy transition goals.
Pakistan Solar Energy Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Solar Energy Installed Capacity and Forecast, in MW, till 2029
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1.3 Government Policies and Regulations
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1.4 Recent Trends and Developments
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.1.1 The Declining Price of Solar Panels and Installation Costs
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1.5.1.2 Increasing Adoption of Solar PV Systems
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1.5.2 Restraints
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1.5.2.1 A Lack of a Solidified Renewable Energy Policy
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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1.8 Investment Analysis
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2. MARKET SEGMENTATION - BY END USER
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2.1 Residential
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2.2 Commercial
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2.3 Utility
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Pakistan Solar Energy Market Size FAQs
How big is the Pakistan Solar Energy Market?
The Pakistan Solar Energy Market size is expected to reach 1.41 gigawatt in 2024 and grow at a CAGR of 46.55% to reach 9.53 gigawatt by 2029.
What is the current Pakistan Solar Energy Market size?
In 2024, the Pakistan Solar Energy Market size is expected to reach 1.41 gigawatt.