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ISLAMABAD: The Competition Commission of Pakistan (CCP) is set to conduct a comprehensive study on the country’s solar energy market, including grid capacity constraints that limit the uptake of solar power, sources in the CCP told Business Recorder. Under Section 28(b) of the Competition Act, 2010, the CCP undertakes sectoral research through its Centre of Excellence in Competition Law (CECL). These studies aim to better understand industry dynamics and identify challenges faced by market participants. The resulting recommendations are shared with relevant stakeholders — including government bodies, regulators, industry representatives, and academia — to support evidence-based policymaking and decision-making. Tax on imported solar panels: what does it mean for Pakistan’s renewable energy future? According to sources, the CCP is currently conducting research on Pakistan’s solar energy market. Given the market’s complexity and limited data availability, the CCP has sought expert input to gain deeper insight into its various segments. The CCP believes that expert knowledge and experience will be vital in identifying the key factors affecting competition — including regulatory, structural, strategic, and efficiency-related barriers. As part of the study, the CCP has sought detailed responses from the Power Division on several issues, including: (i) what is the role of Power Division in the solar energy sector of Pakistan?(ii) what is the current policy framework to promote solar energy? (iii) are there any upcoming amendments or new policies related to solar energy?(iv) how is the Power Division coordinating with provincial governments for solar sector development? (v) are there specific measures in place to ensure level playing field for private sector solar companies? (vi) how would Power Division describe the current structure of Pakistan’s solar market (utility- scale, distributed generation, net metering, off-grid? (vii) is there evidence of market dominance or anti-competitive practices in the solar value chain? (viii) How easy is the entry of new domestic or foreign companies in the solar market? (ix) What is the process of awarding utility-scale solar projects under the current policy framework? (x) How is tariff for the solar power projects determined, and do they encourage competition? (xi) Are there challenges in securing long-term Power Purchase Agreement (PPAs) for solar projects? (xii) What are the main challenges in integrating solar power into the national grid? (xiii) How effective has the net-metering policy been in promoting rooftops and distributed solar installations? (xiv) Are there grid capacity constraints that limit the uptake of solar energy? And (xv) What are the challenges for investors in the solar energy sector? Secretary Power, Dr. Fakhr e Alam Irfan recently informed a parliamentary panel that currently Pakistan’s net metering stands at 6,000 MW whereas 12,000 MW generation is from the off-grid systems installed by the consumers. He argued that the rapid growth in installation of solar systems raised concerns about national grid stability. Copyright Business Recorder, 2025
