The Competition Commission of Pakistan (CCP) has released a study on the solar market, “Unlocking Green Potential: A Market Competition Study of Solar Energy in Pakistan,” identifying structural challenges and proposed targeted reforms to boost the sector.
The study outlines practical measures to strengthen grid infrastructure, improve policy clarity, and enforce quality standards, aimed at fostering competition and driving sustainable growth in the solar sector. Among the key recommendations is an urgent need for modernization of distribution networks. The CCP notes that outdated feeders and substations are ill-equipped to handle two-way power flows from distributed solar generation, leading to voltage fluctuations and limiting net-metering expansion.
The CCP has also emphasized the need for a national smart metering rollout and grid automation, including the deployment of advanced systems such as Supervisory Control and Data Acquisition (SCADA) and Distribution Management Systems (DMS), to improve real-time monitoring, reduce losses, and enable efficient integration of renewable energy.
Highlighting delays in power market reforms, the CCP has urged the government to fast-track implementation of the Competitive Trading Bilateral Contract Market (CTBCM), suggesting interim measures such as pilot bilateral contracts for renewable energy, particularly for industrial clusters and Special Economic Zones, to unlock cheaper electricity and stimulate competition.
The study also raises serious concerns over product quality and consumer protection, recommending the establishment of accredited solar testing laboratories, mandatory compliance with international standards, and the introduction of digital verification systems to curb the circulation of substandard and counterfeit equipment.
To address regional disparities, the CCP has proposed measures to extend solar benefits to rural areas, including off-grid solutions, targeted subsidies, and concessional financing, noting that current net-metering advantages remain largely concentrated in urban centers.
The study has further highlighted the growing importance of battery storage technologies, recommending incentives for solar-plus-storage systems and support for domestic battery manufacturing to reduce pressure on the national grid and enhance energy reliability for industrial and commercial users. At the same time, rapid global advances in battery storage, fueled by electric vehicle innovation, present Pakistan with a timely opportunity to ease grid pressure and deepen competition in the energy market.
To reduce import dependence in a challenging geopolitical climate and amid rising energy costs, the CCP has recommended the introduction of a Production-Linked Incentive scheme alongside the development of dedicated renewable energy zones. These measures aim to stimulate domestic solar panel manufacturing, supported by targeted tax incentives, improved access to financing, and strategic international partnerships.
Additionally, the study calls for the establishment of a National Solar Registry to address persistent data gaps, improve policy planning, and enhance transparency across the solar value chain.
The Commission has placed the draft report on its website for stakeholder consultation.