The Competition Commission of Pakistan (CCP) has released a comprehensive study on the solar energy sector, highlighting major barriers that are slowing investment, hindering competition, and limiting growth. Titled “Unlocking Green Potential: A Market Competition Study of Solar Energy in Pakistan,” the report lays out eight targeted measures aimed at transforming the country’s solar market.
The study identifies outdated grid infrastructure, inconsistent policies, and quality control gaps as the biggest obstacles to the sector’s expansion. According to the CCP, many distribution networks are ill-equipped to handle two-way power flows from solar generation, resulting in voltage fluctuations and limiting the rollout of net-metering for residential and commercial users.
To modernize the system, the CCP recommends a nationwide rollout of smart metering and advanced grid automation, including Supervisory Control and Data Acquisition (SCADA) and Distribution Management Systems (DMS). These technologies are expected to improve real-time monitoring, reduce transmission losses, and facilitate efficient integration of renewable energy.
The report also underscores the need for faster implementation of power market reforms. It calls for pilot bilateral contracts for renewable energy, particularly in industrial clusters and Special Economic Zones, to reduce electricity costs and stimulate competition. Simultaneously, the CCP stresses that quality assurance is critical. Establishing accredited solar testing laboratories, enforcing international standards, and introducing digital verification systems are key steps to curb the circulation of substandard and counterfeit equipment.
Recognizing urban-rural disparities in solar access, the CCP advocates for off-grid solutions, targeted subsidies, and concessional financing to extend benefits to rural areas. Battery storage technologies are also highlighted as essential to ease pressure on the national grid and enhance energy reliability for commercial and industrial users, while local battery production could further boost competitiveness.
To reduce reliance on imports amid rising energy costs, the study recommends a Production-Linked Incentive (PLI) scheme and dedicated renewable energy zones to stimulate domestic solar panel manufacturing. Complemented by tax incentives, improved financing access, and strategic international partnerships, these measures aim to make Pakistan’s solar sector more self-reliant.
Finally, the CCP proposes the creation of a National Solar Registry to fill persistent data gaps, improve planning, and enhance transparency across the entire solar value chain. The draft report has been published on the Commission’s website for stakeholder consultation, signaling a potential turning point for Pakistan’s renewable energy ambitions.
