LAHORE: The LUMS Energy Institute (LEI) has convened a national consultative workshop to develop practical strategies for achieving clean, affordable and reliable electricity in Pakistan by 2040, bringing together key stakeholders from across the country’s power sector.
The workshop focused on implementing recommendations from the LEI report, The Net Zero Transition: A Pathway to Clean and Sustainable Electricity by 2040, with discussions centred on a phased transition towards renewable energy and the measures needed to maintain grid stability and electricity affordability.
The consultation brought together LEI experts Dr Salman Rafiq Chaudhary, Engr Umer Farooq, Dr Muhammad Uneeb and Dr Naveed Arshad, alongside representatives from the Ministry of Energy, National Grid Company (NGC), Independent System and Market Operator (ISMO), WAPDA, GENCOs, PPMC, NEPRA, SIFC and CPPA-G.
Representatives of state-owned and private thermal power plants, equipment manufacturers, technology providers, academia, think tanks and industry also participated in the discussions.
Five priorities for the energy transition
The workshop identified five key implementation priorities for Pakistan’s electricity transition: aligning renewable energy generation with transmission development, expanding energy storage and demand-side measures, strengthening grid flexibility, securing essential grid-support services, and assigning clear institutional responsibilities through a phased action plan.
Participants also examined the potential conversion of suitable thermal power generators into synchronous condensers, provided the projects are technically feasible and economically viable.
Synchronous condensers can support electricity grid stability by providing dynamic reactive power support, system inertia and short-circuit strength. These services are important as the share of renewable energy increases and conventional fossil fuel generation declines.
The discussions explored how existing power plant infrastructure and grid connections could be repurposed to support the transition. Participants stressed that such projects should be assessed against alternative solutions in terms of performance, cost, location and implementation time.
Thermal power plants explore conversion opportunities
Representatives of thermal power plants and equipment manufacturers expressed interest in exploring opportunities to convert suitable generators into synchronous condensers.
The discussions opened avenues for collaboration on plant-specific assessments, conversion engineering and potential projects that could preserve the value of existing infrastructure while supporting greater renewable energy integration.
Plant representatives sought clarity on conversion costs, the remaining useful life of equipment, contractual obligations and potential future revenue streams. Equipment manufacturers highlighted the need to establish the technical and economic feasibility of each project before proceeding.
Policy framework and regulatory reforms
The policy and regulatory discussions focused on developing a technology-neutral framework that would allow different solutions to compete in providing essential grid-support services.
Syed Faizan Ali Shah, Advisor to the Minister of Energy, said the framework should provide equal opportunities to all technologies capable of delivering ancillary services. He also called for new and advanced technologies to be allowed to participate.
Engr. Altaf Hussain Malik, Managing Director of the National Grid Company, highlighted the need for clarity on tariffs, licensing, performance requirements, interconnection standards and service valuation before investment decisions are made.
He also stressed the importance of assessing the life-cycle costs and locational benefits of different solutions against the electricity system’s requirements.
Abid Latif Lodhi, Managing Director of PPMC, called for ancillary services to be separated from energy procurement and opened to technology-neutral competition.
He said the system’s requirements should be established, plant-level feasibility assessed, and clear regulatory and commercial arrangements developed for the procurement and compensation of these services.
Omer Haroon Malik, Executive Director of ISMO, said work was underway to develop a comprehensive ancillary services framework alongside broader power-market reforms.
He said the objective was to identify the need for ancillary services and procure them through a competitive, technology-neutral process, whether provided by synchronous condensers, generators or other technologies capable of meeting the required specifications.
Muhammad Arfan Miana, Member (Power) at WAPDA, emphasised the importance of protecting consumers from excessive costs.
He said compensation mechanisms should be based on service availability and performance rather than returning to earlier capacity-based models.
Potential benefits for electricity consumers
Participants noted that effective renewable energy integration and the procurement of grid-support services could contribute to a more reliable electricity system and reduce Pakistan’s dependence on imported fuels.
However, the potential savings for consumers would depend on the technical and economic viability of individual projects, as well as the arrangements adopted for recovering costs.
The discussions highlighted the need to balance grid stability, investment requirements and consumer affordability as Pakistan moves towards a cleaner electricity system.
LUMS to publish consolidated findings by 2026
The LUMS Energy Institute will consolidate the workshop’s recommendations and findings to help establish implementation priorities and clarify institutional responsibilities.
The consolidated findings, including the results of an ongoing pre-feasibility assessment of synchronous condenser conversion opportunities, are expected to be published before the end of 2026.
Dr Fiaz Ahmad Chaudhry, Senior Advisor at LEI, Chairman of the Board of Directors of the National Grid Company and Independent Director at ISMO, said the national consultation was translating the findings of the LUMS net-zero report into practical implementation priorities, with clear actions and responsibilities for advancing the 2040 electricity pathway.
Concluding the workshop, Dr Tariq Jadoon, Provost of LUMS, thanked the participants and said the university would continue working with the government and industry to translate research into policy and practical solutions for affordable, reliable and cleaner electricity.
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