Promoting renewable energy and energy efficiency in Pakistan

Project description

Title: Renewable Energy and Energy Efficiency in Pakistan (REEE II)
Commissioned by: German Federal Ministry of Economic Cooperation and Development (BMZ)
Country: Pakistan 
Lead executing agency: Economic Affairs Division, Government of Pakistan
Overall term: 2005 to 2023

Net Metering System in Islamabad


In Pakistan, some 75 million people in rural areas and suburbs are affected by regular power shutdowns, with a further 50 million without access to secure electricity supplies. Electricity production relies heavily on hydro and thermal energy. Power from renewable sources (excluding large hydro) contributes less than five per cent to total power generation. 

The Government of Pakistan aims to increase the share of renewable energy (RE) in its energy mix to 30 per cent by 2030. The measures introduced in the Alternative Renewable Energy Policy 2019 are expected to fully integrate RE into the country’s energy planning.


The supply of renewable energy, its financing and energy efficiency are improving and contributing to sustainable economic growth in Pakistan and to global climate protection.


The REEE project is implemented through the following four intervention areas: 

1.  Grid management

Assisting grid operators in adjusting their processes to increase the share of renewable energies and stabilise weak grids. This includes new grid planning and operation tools, advanced grid studies, and roadmaps for grid modernisation.

2.  Scaling up grid-connected solar PV

Improving the conditions for accelerating expansion of decentralised, on-grid solar power generation. It advises partners on new business models, digitises their net metering process, improves product quality, and trains solar PV service providers.

3.  Rural electrification

Supporting the piloting of new business models that are replicable and sustainable. Developing the regulatory framework for the off-grid sector and improving operational skills.

4.   Pakistan German Renewable Energy Forum (PGREF) 

The Pakistan German Renewable Energy Forum is an exchange platform to bring policy makers, research institutes and experts from both countries together. A strong focus lies on introducing German companies to the Pakistani market.

Last update: July 2022

Additional information