Durreesamin Journal (ISSN: 2204-9827) July Vol 1 Issue 3, Year 2015 The Importance of Renewable Energy Sources in Pakistan Umair Shahzad (Riphah College of Engineering & Technology, Riphah International University, Faisalabad. umairshahzada@hotmail.com) I. INTRODUCTION The world is turning into a global village and fast industrialization process has resulted in an increased energy demand. Prices of fossil fuels are sky-rocketing. If these fuels are consumed at the same rate, oil and gas reserves will hardly be available after 40 and 65 years respectively [1]. Fossil fuels cause many environmental problems. The solution to these problems lies in the hands of sustainable energy development. With regard to this, renewable energy sources serve as a solution. If these sources are compared with the conventional energy sources, it is found out that renewable sources offer many environmental benefits. Each renewable source has a unique advantage which makes it exclusive. Almost none of these sources contribute to any kind of pollution. Although, at present non renewable energy sources such as oil, natural gas and coal are highly used for electricity production, the role of renewable sources should not be under- estimated and must be emphasized and understood [2]. Pakistan has been facing unprecedented energy crisis since the last two decades. The electricity shortage is an unremitting problem that has decelerated Pakistan’s economy. The problem becomes sever during summer season. The huge deficit between supply and demand has resulted in routine load-shedding. The continuing power crisis has badly affected the daily lives and businesses of people. It has also hampered the wheel of industry. People are forced to deal with day-long interruptions in electricity and intolerable heat with no rational solution. In recent years, this problem has really aggravated. It has resulted in a forced load-shedding of the order of about 5000 MW, for 8-10 hours daily. This has affected all the sectors of the economy, particularly, industrial and agricultural sector. Therefore to reinforce the economic sector, Pakistan has to strengthen its industrial sector with cost- effective and efficient energy sources. Energy plays a key role in making the economy powerful. However, a majority of countries employ fossils fuels as source of electricity generation and in that case, Pakistan also is not invulnerable. One significant solution is to alternate fossil fuels with renewable sources like wind, solar, biomass and hydropower. II. ENERGY PRIORITIES AND RENEWABLE ENERGY According to the National Transmission and Despatch Company (NTDC), annual electricity growth rate is estimated to drift around 5-6% over the next ten years, which translates to a peak electricity demand of 32,000 MW by 2020. This demand has been and will continue to increase due to technological advancements, escalating population, additional industrial and agricultural activities and rising of living standards. Electricity generation from coal, oil and natural gas is not reliable in the long run because they will eventually deplete. Furthermore, there is also an environmental aspect that must be considered while using them. They pose a serious threat to living beings due to production of poisonous greenhouse gases which, in turn, are causing global warming [3], [4]. Renewable energy sources do not pollute the environment. Contrary to fossil fuel energy, renewable energy is the kind of energy which was planned and produced in laboratories with experiments, then conveyed to commercial consumption by its developers and presented for the welfare of people. No doubt, fossil fuels may be dominant at the present but the time is not far when industries and power houses will switch to renewable sources for power production. It is because fossil fuels have a finite life, possessing a future of nearly fifty years, and they create ecological hazards. On the other side, renewable sources are infinite, clean and probable to be cost-effective [5], [6]. Abstract- Pakistan has been facing acute energy crisis since last numerous years. The demand for energy is increasing rapidly in Pakistan. Energy is one of the most vital development priorities of Pakistan. The economy of Pakistan is mainly reliant on the electricity being produced by coal, oil, and natural gas. The total energy produced only makes up for a part of the total energy consumption. On the contrary, Pakistan possesses a huge potential for renewable energy sources like wind, solar, hydropower and biomass. Proper development and implementation of these alternative energy technologies can bring many benefits to the country in terms of energy, economy, environment and national security. Therefore, the key aim of this paper is to present the current energy situation and potential of renewable energy sources in Pakistan and link these factors with economy and business priorities. Keywords- Energy crisis, energy consumption, economic impact, alternative energy technology, renewable energy sources, Pakistan