Pakistan imported more than 4.5 gigawatts (GW) of battery storage equipment in the first half of 2026 — nearly half of the country’s cumulative historical imports of 9.5 GW — as households and industrial businesses rush to cut electricity costs, a representative of the Pakistan Solar Association said.
The rapid growth in battery storage adoption was discussed at a parliamentary dialogue organised by the Parliamentary Forum on Energy & Economy, where lawmakers, industry representatives, and government officials flagged both the potential and the risks of an unregulated surge.
Long-term energy planning needed
Convener MNA Sher Ali Arbab said Pakistan needed long-term energy planning, adding that battery storage would play an important role in improving power sector efficiency over the next two decades.
He said expensive electricity generation capacity remained underutilised during daytime hours, while demand from electric vehicles and data centres continued to expand. Arbab called for a transparent legislative framework developed through cross-party consensus.
Co-convener MNA Dr Nafisa Shah warned against unregulated imports of substandard batteries, stressing the need for safety standards, testing facilities, and recycling arrangements. She said energy policy should balance grid stability with public welfare and ensure that clean energy benefits reached low-income households.
Battery storage could reshape power sector
Moderator Usama Mela highlighted the potential impact of battery energy storage systems (BESS) on electricity distribution, warning that more consumers could leave the national grid. He said an unmanaged shift away from the grid could put further financial pressure on electricity tariffs.
MNA Chaudhry Mubeen Arif Jutt and MNA Asad Alam Niazi also raised concerns about industrial investment being diverted from production equipment towards energy systems. Jutt said industrialists were investing heavily in captive solar and battery storage to secure affordable electricity and remain competitive with foreign rivals. He warned that inadequate market-based procurement arrangements could raise costs for consumers unable to afford storage systems.
Battery taxes pushing up costs
On provincial concerns under the 18th Amendment, Sanaullah Baloch and Phullain called for a more decentralised approach to policymaking. They said Balochistan’s mineral resources, including potential lithium deposits, could support local battery manufacturing and employment, and called for provincial consultation on mineral extraction and related projects.
Pakistan Solar Association Vice Chairperson Engr Chaudhry Uzair raised concerns about the tax burden on battery storage equipment, saying cumulative taxes and customs duties amounted to 35 percent to 40 percent. He added that a basic 5-kilowatt-hour battery cost more than Rs. 250,000, limiting affordability for lower-income households.
Power Division plans pilot projects
Syed Faizan Shah, adviser to the Power Division, said the division would invite competitive tenders within 15 days for four pilot battery energy storage projects, each with a capacity of 10 megawatt-hours. The projects will be developed across the Lahore, Multan, Islamabad, and Peshawar electricity distribution companies.
Shah also said the National Electric Power Regulatory Authority (Nepra) was designating battery storage as a regulated asset. The move would allow distribution companies to ease pressure on overloaded transformers at a lower cost than building new grid stations.
Lahore Electric Supply Company Chairman Amir Zia said distribution transformers faced reverse power flows from rooftop solar systems during the day, followed by sharp increases in demand in the evening. He said battery storage could help retain surplus daytime electricity for use during peak evening hours.
The dialogue concluded with participants agreeing that utility-scale and distributed battery storage systems were becoming increasingly important for Pakistan’s power sector.
