ustainability in the power sector is often linked to adoption of renewable energy sources or achieving short-term environmental goals. However, true sustainability extends far beyond just green technology; it involves building resilient, self-reliant systems capable of continuously meeting the evolving demands of the society, the economy and the environment.
Historically, Pakistan’s energy infrastructure has heavily depended on imported fuel, equipment and expertise. The country spends more than $25 billion annually according to the Pakistan Economic Survey (2022-23), accounting for approximately 30 percent of the total import bill.
This dependence not only drains precious foreign exchange but also exposes the country to volatility from global market fluctuations, geopolitical tensions and unpredictable supply chains. Localisation is a potentially transformative strategy to mitigate these risks.
Localisation involves nurturing domestic industries and leveraging local resources to build a robust energy ecosystem. It extends beyond mere substitution of imports. It includes creating local capacities, fostering technical expertise, establishing robust supply chains and investing in indigenous research and development.
Data from Pakistan’s Alternative Energy Development Board suggests that increased localisation in the renewable energy sector alone could generate over 100,000 jobs by 2030, significantly benefiting both economic stability and workforce development.
Innovation is the essential partner to localisation. Globally, the energy sector is undergoing profound transformations driven by groundbreaking technological advancements. Innovations such as smart grids, artificial intelligence for predictive demand management, battery energy storage systems and improved renewable energy integration have reshaped traditional power networks.
Countries embracing these advancements have seen significant improvements in energy efficiency, reliability and environmental sustainability. Pakistan, currently facing around 17 percent average transmission and distribution losses, as reported by the National Electric Power Regulatory Authority, urgently requires these innovative technologies to modernise its grid infrastructure and reduce inefficiencies.
A recent exemplary initiative that effectively combines localisation with innovation is K-Electric’s Energy Progress and Innovation Challenge 2025. EPIC 2025 represents a groundbreaking effort aimed at fostering localised innovation to address Pakistan’s specific energy sector challenges.
EPIC 2025 directly builds upon the momentum of KE’s earlier successful innovation initiative from 2022, reaffirming the utility’s strategic commitment to harnessing local creativity and technological excellence.
KE’s EPIC 2025 specifically targets key areas requiring immediate intervention, such as proactive detection and prevention of electricity theft—which currently coststhe power sector approximately Rs 590 billion annually—as well as the development of tamper-proof load-shedding solutions and sophisticated AI-driven demand forecasting systems. These clearly defined challenge statements demonstrate KE’s understanding of local energy dynamics and the practical problems faced by its consumers.
True sustainability in the power sector will be achieved not through isolated renewable energy initiatives, but through a comprehensive strategy rooted in localisation and innovation.
A distinctive aspect of EPIC 2025 is its holistic approach towards nurturing innovation. The participants are provided not only with financial incentives—amounting to Rs 3 million in cash prizes—but also with mentorship, technical support and direct opportunities for commercial collaboration with KE upon selection.
Such structured support ensures that innovations move rapidly from conceptual stages to practical deployment, translating directly into measurable benefits for consumers, industry stakeholders and the national economy.
However, transitioning to localisation and innovation in Pakistan’s energy sector faces several substantial barriers. Foremost among these challenges is the inadequate investment in research and development.
Pakistan’s current R&D spending stands below 0.3 percent of GDP, considerably lower than regional counterparts. This underinvestment hampers innovation, restricts the scaling-up of successful local projects and limits the nation’s potential to capitalise on its abundant renewable resources, such as solar and wind. For instance, World Bank reports estimate Pakistan’s solar potential alone at approximately 2.9 million megawatts annually—far exceeding the nation’s total electricity demand.
To overcome these challenges, Pakistan requires an integrated strategy that involves supportive policies, robust public-private partnerships, substantial funding increases for R&D and enhanced collaboration between academia, industry and policymakers.
EPIC 2025 shows how structured partnerships can provide the necessary catalyst for localised innovation by linking practical solutions directly with market implementation and commercial viability.
Furthermore, effective localisation demands a skilled and prepared workforce. Educational institutions must be empowered to produce graduates proficient in the latest energy technologies, capable of leading local innovation efforts.
Vocational training institutes, universities and research centres must align their curricula with contemporary and future demands of the energy sector, preparing Pakistani professionals to manage, operate and innovate within a rapidly evolving global landscape.
China, India and Brazil have already demonstrated the economic and environmental benefits derived from prioritising localised innovation. These countries have successfully reduced their dependence on external technologies and energy imports, strengthened their economic stability and improved their environmental sustainability.
For Pakistan, true sustainability in the power sector will be achieved not through isolated renewable energy initiatives, but through a comprehensive strategy rooted in localisation and innovation. Initiatives like KE’s EPIC 2025 exemplify how targeted investment in local solutions can generate transformative outcomes.
Embracing this integrated approach can position Pakistan to effectively address its immediate energy challenges, reduce economic vulnerabilities and leverage innovation to build an energy future that is economically resilient, environmentally sustainable and locally empowered.
The writer is commerce reporter at The News International.
