Pakistans solar boom prompts calls to rethink costly lng contracts

Pakistans solar boom prompts calls to rethink costly lng contracts

Parliamentarians and energy experts have urged the government to reconsider long-term energy contracts that could lock Pakistan into costly take-or-pay obligations and add to circular debt, calling for greater flexibility in LNG and other fuel imports as the country’s rapid solar expansion reshapes energy demand.

The calls came during a dialogue titled “The Sun and the Pipeline: Energy Contracts in an Era of Solar Disruption in Pakistan,” organised by the Parliamentary Forum on Energy and Economy in Islamabad. The discussion examined Pakistan’s changing RLNG requirements, global market volatility and geopolitical risks, as well as policy options aimed at maintaining energy security while protecting consumers from rising costs.

Pakistan has deployed an estimated 50 gigawatts of solar capacity in just a few years, largely without public subsidies, across utility-scale projects, net-metered systems, agricultural applications, off-grid installations and behind-the-meter generation.