Pakistan Energy Efficiency : Industrial Energy Efficiency and Decarbonization (EE&D)

Overview & Synopsis

Pakistan’s industrial sector offers a significant and achievable opportunity for energy efficiency and decarbonization (EE&D), with the potential to substantially reduce energy demand, generate cost savings, and defer the need for new power generation capacity. Given that industry accounts for a substantial share of the country’s energy consumption, targeted EE&D interventions could include replacing inefficient equipment with market-ready or emerging efficient technologies and waste heat recovery, fuel switching (using clean sources of energy instead of fossil fuels), increasing electrification (converting high temperature range, gas-based processes to electricity generated from renewable resources for instance), increasing the use of distributed renewable energy as an alternative to grid-supplied electricity, process improvements, implementing circularity (increasing reuse through improved utilization of existing material stocks, remanufacturing, and recycling), and deploying carbon capture utilization and storage (CCUS) initiatives. In Pakistan, the most immediate opportunities for industrial EE&D include replacing inefficient equipment with efficient technologies and fuel-switching. The trend of increasing use of distributed renewables is already taking place in the country.