Assessing Industrial Energy Transition in the Textile Sector in Pakistan

Abstract

This study assesses the industrial captive power generation in Pakistan and its on-going transition to renewable energy. By focusing on the textile sector and conducting an energy survey with detailed interview sessions with energy management teams from a number of large textile companies, we try to answer some of these questions: Why do industries in Pakistan continue to generate captive power even when there is excess generation capacity in the grid, and the government is incentivizing and encouraging the use of grid electricity? What are some factors driving the transition to renewable energy in captive generation? Similarly, what are some barriers for industries to integrate renewable energy in their energy mix? What benefits, in terms of emission reductions and cost savings can be attributed by adding solar PV for these industries? Lastly, we assess the impact of a recently implemented sales taxes on renewable energy equipment on the costs of industrial solar PV projects.