Renewables First hosted a launch event on Wednesday to unveil “Derisking Pakistan’s Renewable Energy Future.” The report addresses critical financial barriers in the renewable energy sector and proposes actionable solutions to revitalize the industry and reduce the cost of capital.
The study emphasizes innovative financial mechanisms, including securitization, blended finance, and currency hedging, as essential tools to overcome financing challenges. The study outlines pathways to attract institutional investments and foster a robust renewable energy ecosystem by proposing regulatory reforms such as fiscal incentives and favorable monetary policies.
“The technology is there, but financing remains the bottleneck,” said Zeeshan Ashfaq, CEO of Renewables First in his opening remarks.
A Blueprint for Financial Innovation
The study outlines solutions to lower the cost of capital, including securitization, blended finance, and fintech-driven models. Ahtasam Ahmad, author of the study, emphasized the potential global impact, “A 1% reduction in the cost of capital for emerging markets could save $150 billion in clean energy financing under the net-zero scenario.”
The event featured three dynamic panels, each addressing critical aspects of renewable energy financing.
De-Risking Clean Energy Investments – The Catalytic Role of Blended Finance
The panel highlighted innovative risk management tools, capacity building, and transparent impact storytelling to attract concessional capital. Policy interventions, such as rationalized taxes and structured incentives, alongside public-private collaboration, are essential to enhance investor confidence, mobilize resources, and scale renewable energy projects effectively. Ahmed Ammar Yasser, Chief of Party, PFAN-PPSE, pointed to impact-driven narratives as essential for concessional finance. “For concessional money to flow, we need compelling impact stories. Structured financing mechanisms like credit guarantees and first-loss coverage can reduce risks and boost private sector confidence.”
Sohail Malik, Technical Team Lead, CRCC, emphasized capacity building and trust. “Blended finance is a strategic tool for integrating public and private resources. However, it requires regulatory clarity and trust-building measures to enhance investor confidence.”
Unlocking Renewable Energy Investment – Viability of Securitization and Project Aggregation
Securitization can transform renewable energy financing by standardizing projects, pooling smaller assets, and leveraging global insights to attract institutional investors. Developing credit enhancements, secondary markets, and regulatory clarity is essential. Collaboration among stakeholders will unlock capital for new projects, enabling Pakistan’s energy transition and reducing reliance on traditional financing models.
Talha Ameer Khan, CFA, Deputy CEO, Burj Clean Energy Modaraba, shared insights on Pakistan’s first clean energy fund. “By consolidating fragmented investments into a cohesive platform, we’re not only mobilizing capital but also creating a scalable model for clean energy on the Pakistan Stock Exchange.”
Irteza Ubaid, COO, of Shams Power Limited, emphasized benefits for developers. “Securitization unlocks capital tied in existing projects, allowing reinvestment into new ventures, thereby accelerating the energy transition.”
Financing Solar Energy Access – The Role of Fintech in Bridging the Energy Financing Gap
Inclusive financing models and fintech-driven solutions, such as lease-to-own plans and alternative credit scoring, make solar energy accessible to underserved communities. Collaborative ecosystems, innovative revenue streams like prepaid energy models, and supportive regulatory frameworks are vital for scaling renewable energy. Stakeholders must leverage technology and partnerships to bridge Pakistan’s energy financing gap.
Arif Lakhani, Co-Founder, of Qist Bazaar, explained his lease-to-own model. “Our approach allows households to pay installments equivalent to their electricity bills, democratizing access to renewable energy while enabling ownership.”
Vardah Malik, Climate Finance Advisor, Chemonics International, emphasized fintech’s transformative potential. “Fintech can bridge the renewable energy financing gap by reducing transaction costs and introducing peer-to-peer lending models.”
Nayab Babar, CFA, Head of Strategy, JazzCash, spoke about data-driven solutions. “Leveraging data analytics and credit scoring, fintech can address credit gaps and tailor renewable energy financing to underserved communities.”
Umair Sheikh, Managing Director, Innovate47, advocated energy trading platforms. “Innovative models enabling solar energy trading can generate new revenue streams and simplify transactions through digital payments.”
The event concluded with a collective call to action for regulators, financiers, and developers to create an ecosystem conducive to innovative financing. Collaborative efforts, regulatory support, and digital transformation are key to unlocking Pakistan’s renewable energy future.
