ISLAMABAD: International experts have underlined the need for strong frameworks and strategies to build an economic case for retiring coal-fired power plants.

While coal remains embedded in Pakistan’s power system, the momentum is growing for a structured transition anchored in economic planning, just transition frameworks, and investments in renewable energy and grid modernisation.

Sustainable Development Policy Institute (SDPI), in collaboration with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), convened a high-level consultative discussion on “Repurposing Coal-fired Power Plants in Pakistan – Challenges and Opportunities”, bringing together policymakers, experts, and energy leaders to chart pathways for Pakistan’s transition away from coal.

The Section Chief of the Energy Division at UNESCAP, Michael Williamson, said that coal phase-down is now a central theme in the Asia-Pacific region following the 2021 Glasgow Climate Pact. “The urgent need is to reverse the trend of coal-fired generation capacity, strengthen climate policies through NDC 3.0, phase out subsidies for fossil fuels and accelerate support for renewables and energy efficiency,” he emphasised.

He noted that coal remains deeply entrenched, providing 56 per cent of electricity generation in Asia-Pacific, while accounting for 76pc of global consumption. He warned that the region’s planned 184GW of new coal capacity risks locking in emissions for decades.

Speaking in the context of Pakistan, Dr Khalid Waleed, Energy Economy Expert at SDPI, described the country’s three E’s crisis: energy, economy, and environment. He recalled how coal plants under the China-Pakistan Economic Corridor (CPEC) added 7.2 GW of capacity but at a cost to affordability and utilisation.

“We are facing a planning conundrum; solving one crisis often leads to another. While imported coal plants are underutilised, community-financed rooftop solar is rapidly expanding,” he said, urging financial and technical repurposing options, including early retirement schemes, coal to clean credit initiative, Just Energy Transition Partnerships (JETPs), and local coal integration.

The Managing Director of PPIB, Shah Jahan Mirza, underscored government targets of 40pc renewable energy by 2025 and 60pc by 2030, noting that with net-metered solar, Pakistan is already at 43 to 44pc renewables in its energy mix.

He confirmed that while Pakistan has no timeline for phasing out coal, the 2025-35 plan envisions no new thermal plants, with capacity additions focused on hydro, wind, and nuclear. However, he stressed that grid infrastructure remains the biggest bottleneck in scaling up renewables.

Manager Global Electricity Transition, Rocky Mountain Institute, David Lone said coal plants could be converted into flexible grid services or even green hydrogen sites, while George Mowles-Van Ger Gaag, Associate Director of Coal Asset Transition, called for a national just transition framework to safeguard jobs and communities.

Managing Director, GFANZ, Yuki Yasui, stressed that credibility and financial viability must underpin coal-to-clean transitions.

Researcher SDPI Zainab Babar highlighted the urgency of balancing Pakistan’s energy needs with its climate commitments.

Head of Energy Unit at SDPI, Engineer Ubaid ur Rehman Zia, in his concluding remarks, said Pakistan’s transition debate has shifted from energy security to economic viability. “Renewables are becoming cheaper while coal financing is nearly nonexistent. The real challenge is addressing stranded assets and capacity payments. Green upscaling and repurposing of coal power plants is the way forward,” he remarked.

Published in Dawn, August 22th, 2025