ISLAMABAD: Global energy investments are projected to reach $3.4 trillion in 2026, with $2.2 trillion allocated to clean energy and $1.2 trillion directed towards fossil fuels.
Renewable power additions reached 692 GW globally in 2025 — accounting for 85.6 percent of all power capacity additions whereas Pakistan’s own peak national electricity demand is projected to scale between 28.6 GW and 43.1 GW by fiscal year 2035, states latest study titled “Energy Transition: What It Means, What the Evidence Shows, and What It Implies for Pakistan” by PIDE.
The research emphasises that the global energy shift is a comprehensive socio-technical system change rather than a simple fuel switch.
Globally, weighted-average levelised costs in 2025 dropped to about USD 33/MWh for onshore wind and USD 44/MWh for utility-scale solar PV, with more than 90 percent of new utility-scale renewable projects undercutting the cheapest new fossil-fuel alternatives.
Furthermore, four-hour battery installation costs have decreased to roughly USD 140/kWh. However, the report cautions that deployment statistics alone are insufficient metrics for success.
For Pakistan, the brief outlines severe structural complexities, including imported fuel exposure, circular debt, constrained electricity grids and limited fiscal space. According to the Revised Indicative Generation Capacity Expansion Plan (IGCEP) 2025-2035, Pakistan’s gross electricity demand is forecast to grow from 137,025 GWh in 2025 to 180,605 GWh by 2035.
The study further stresses that Pakistan’s policy approach requires a holistic coordination of supply, demand, transmission networks, markets, financing and institutional capabilities.
The brief warns that expanding renewable generation capacity without concurrent grid stabilisation, financial restructuring of utilities and targeted social protection will lead to an incomplete transition.
Instead, success must be evaluated based on long-term affordability, system reliability, energy security, financial sustainability, and industrial competitiveness.

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