ISLAMABAD: Lawmakers, energy officials and industry representatives have warned that Pakistan could become a market for unsafe and low-quality imported batteries if the country fails to introduce proper safety checks, testing facilities and recycling rules at a time when battery imports are rising sharply.<\/p>\n
The warning was issued during a discussion held by the Parliamentary Forum on Energy and Economy at the Serena Hotel in Islamabad on October 28, 2026. The debate focused on the rapid growth of battery storage, high electricity prices, taxation, local manufacturing and the pressure being faced by the national power grid due to the spread of solar systems.<\/p>\n
The meeting was attended by MNA Sher Ali Arbab, MNA Dr Nafisa Shah, Power Division adviser Syed Faizan Shah, MNA Chaudhry Mubeen Arif Jutt, MNA Asad Alam Niazi, Sanaullah Baloch, Phullain Baloch and representatives of the energy sector.<\/p>\n
A representative of the Pakistan Solar Association told the forum that Pakistan had imported more than 4.5 gigawatts of battery storage equipment in the first six months of 2026. The forum\u2019s accompanying statement compared this figure with a historical cumulative import level of around 9.5 gigawatts, reflecting the speed at which the market has expanded.<\/p>\n
Participants said the increase was being driven by households and businesses seeking protection from expensive electricity and unreliable supply. However, they cautioned that a rapid shift towards imported batteries without a clear national policy could create challenges relating to safety, quality control, waste disposal and dependence on foreign suppliers.<\/p>\n
The discussion also highlighted a sharp difference of opinion over affordability. The Power Division argued that battery storage could help stabilise the grid and reduce electricity costs, while representatives of the solar industry said batteries remained beyond the reach of many low-income households.<\/p>\n
Engr Chaudhry Uzair, vice chairman of the Pakistan Solar Association, said a five kilowatt hour battery could cost around Rs250,000, which was a major expense for poor families. He said people were turning to solar and batteries because they needed cheaper and more reliable power, not because the equipment was easily affordable.<\/p>\n
Industry representatives blamed taxes and customs duties, estimated at 35 to 40 percent, for increasing battery prices. They called for tax relief, safety regulations, proper system design standards and stronger support for local manufacturing.<\/p>\n
Uzair said Pakistan lacked a complete policy for battery system design. Although some standards require batteries and cells to meet quality requirements, he said clearer rules were needed for the design, installation and safety inspection of complete storage systems. He also urged the government to include Pakistani engineers and the solar industry in bodies making decisions on battery policy.<\/p>\n
Speakers warned that Pakistan should not repeat the pattern seen in solar imports, where local production was delayed while the market became dependent on foreign products. They said simple local assembly would not be enough if key components continued to be imported.<\/p>\n
One speaker said around 85 percent of the world\u2019s batteries were produced in China, while batteries from Europe and the United States could be 30 to 35 percent more expensive. Participants said incentives for local manufacturing needed careful design because high duties on imported batteries and components could increase costs for consumers without creating a strong domestic industry.<\/p>\n
The Power Division presented its plan to use battery energy storage systems, or BESS, to store surplus electricity during daytime hours and release it at night when demand rises.<\/p>\n
Syed Faizan Shah said the government was preparing four pilot projects of 10 megawatt hours each at selected grid stations. According to the presentation, these projects would store excess power flowing back towards the grid during periods of high solar generation and supply it at night.<\/p>\n
The spoken presentation named LESCO, GEPCO, IESCO and MEPCO as the intended locations for tenders, which the official expected to be launched within about 15 days. However, the forum\u2019s accompanying statement listed LESCO, MEPCO, IESCO and PESCO, showing a difference in the material provided regarding the fourth distribution company.<\/p>\n
The Power Division official also said the 2026 Indicative Generation Capacity Expansion Plan was being prepared with around 1,500 megawatt hours of battery storage. Of this, about 1,000 megawatt hours would be at the transmission level and 500 megawatt hours across distribution networks.<\/p>\n
According to the Power Division, battery storage could help stabilise the grid, reduce the need for new gas-based power plants used only during peak demand, and lower reliance on imported coal and liquefied natural gas. The official said better storage could reduce the risk of load shedding in the next two to three years, subject to implementation.<\/p>\n
He said Pakistan was facing a growing mismatch between falling overall electricity use and rising demand during a few evening hours. Peak demand in the national transmission system had reached around 26,522 megawatts, and could approach 29,000 megawatts when K-Electric was included. Daytime demand, by contrast, could fall to around 8,000 megawatts.<\/p>\n
This creates a costly problem because power plants and grid equipment are required for short periods of peak demand even when they remain underused during the rest of the day. Batteries, the official said, could store cheaper daytime electricity and supply it during expensive peak hours.<\/p>\n
The Power Division is also preparing an ancillary services framework to identify areas where storage is most needed and to attract private investment. The regulations are expected to be developed by around April 2027. One proposed model would allow private companies to install batteries and provide storage services under contracts lasting 10 to 15 years.<\/p>\n
Another proposal under consideration is to recognise battery storage as a regulated asset in the power sector. The Power Division official said this could allow batteries to be used instead of constructing costly grid stations or installing additional transformers where existing equipment becomes overloaded.<\/p>\n
He gave the example of replacing a grid station costing about Rs1 billion with a battery installation costing around Rs500 million, potentially saving Rs500 million. The official said the legal and regulatory changes needed for this model were still being pursued. The forum statement described the move towards regulated asset status as a government initiative.<\/p>\n
Participants, however, raised concerns over who would ultimately pay for such projects. They warned that if utilities invested heavily in battery storage and recovered the cost through electricity tariffs, ordinary consumers could face an additional burden.<\/p>\n
A Power Division official said the government was considering time-of-use tariffs to encourage consumption when electricity supply was cheaper. Under the proposed approach, certain industrial users could receive rates of Rs6 to Rs9 per unit during selected periods. The official also cited an example in which an industrial tariff of around Rs30 could fall to Rs22 for a consumer using electricity at a load factor above 50 percent.<\/p>\n
The government is also exploring tariff refinancing and options allowing industries to purchase electricity through direct contracts with suppliers. Officials said these steps were intended to keep businesses connected to the grid instead of forcing them to build their own power systems.<\/p>\n
Several business representatives said high electricity costs were already pushing factories away from the national grid. One participant claimed many Karachi industrialists had moved towards a mix of gas generators, solar panels and other private systems, with electricity costs reaching around Rs42 per unit in some cases.<\/p>\n
The same participant claimed that Sui Southern Gas Company\u2019s gas consumption had fallen by about 50 percent over seven months as industries changed their energy arrangements. He also alleged that K-Electric received gas at around Rs1,450 per million British thermal units while industrial users paid between Rs3,800 and Rs4,700, besides additional levies. These figures were presented as claims during the discussion and were not independently verified in the supplied material.<\/p>\n
MNA Chaudhry Mubeen Arif Jutt warned that businesses were spending money on captive power generation and storage instead of expanding factories, purchasing machinery or increasing production. He said some businesses were investing up to twice as much in energy arrangements as in production equipment.<\/p>\n
The forum also discussed electric vehicles. The Power Division said networks designed for lower household electricity loads could face pressure when people charge electric cars at night. It suggested that battery storage could eventually be required alongside some electric vehicle charging systems to reduce stress on transformers and the wider grid.<\/p>\n
The official also referred to an electrification plan expected to be placed before the Cabinet. The plan would prioritise areas located within about five kilometres of the existing grid. The government expects wider electrification and cheaper daytime power rates to increase electricity use and help balance demand.<\/p>\n
The battery manufacturing policy being prepared by the Ministry of Industries was another key subject. The Power Division adviser said the policy could be announced within a month or two, with early incentives focused on assembly plants and raw materials. Participants, however, said local cell manufacturing would take much longer and warned against treating simple assembly as full domestic manufacturing.<\/p>\n
The debate also brought provincial concerns into focus. Participants from Balochistan criticised centralised energy planning and said provinces and local communities were often excluded from decisions affecting their power supply and economic development.<\/p>\n
Sanaullah Baloch said policies designed mainly in Islamabad did not reflect the needs of rural communities, farmers and poorer regions. He said Balochistan had major wind and solar potential but provincial input was often missing from national energy planning.<\/p>\n
He said the provincial government had signed memorandums of understanding with international companies for solar projects of 10, 20 and 30 megawatts, but the proposals had remained pending in Islamabad for around 10 years. He urged the government to work with provincial assemblies and create a national framework allowing provinces to design incentives according to their own needs.<\/p>\n
Participants also referred to lithium deposits in Balochistan and called for mineral resources to support local battery manufacturing and job creation. They said provincial governments should have a defined role in decisions on the use of natural resources and the distribution of investment benefits to local communities.<\/p>\n
Another speaker said access to electricity remained unequal across the country and that policy must reflect the different needs of urban centres, remote districts and poor rural households. Microgrids and minigrids were suggested as possible solutions for improving access in underserved areas.<\/p>\n
The forum noted that battery storage planning must also take into account the growth of electric vehicles, data centres and other electricity-intensive sectors. Participants said the government needed to balance affordable electricity, reliable supply, grid stability, environmental sustainability and access for all communities.<\/p>\n
The proceedings concluded that battery storage was becoming an important part of Pakistan\u2019s power system, but required a clear legal framework, fair tariffs, safety standards and stronger coordination between federal and provincial institutions. The proceedings will be compiled into a Parliamentary Working Paper for submission to the National Assembly Standing Committee on Energy, the Ministry of Energy, NEPRA and the Ministry of Finance to advance proposed changes in legislation, electricity tariffs and taxation.<\/p>\n","protected":false},"excerpt":{"rendered":"
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