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The Economics Of Pakistan’s Battery Rush

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thursday

A battery stores electricity. In Pakistan, it increasingly stores something else: protection against an uncertain power system. Households and businesses are turning to batteries to cope with high tariffs and unreliable supply. Individually, these are private responses. Collectively, they are reshaping the economics of Pakistan’s power sector through their effects on electricity demand, grid finances, industrial competitiveness, and the distribution of energy costs.

According to a Renewables First study published in July 2026, Pakistan imported an estimated 4.6 gigawatt-hours of lithium-ion battery storage in 2025, around 220 per cent more than in the preceding year. Cumulative imports between 2018 and 2025 reached approximately 7.6GWh, with about 60pc arriving in 2025 alone.

Pakistan’s solar rush is becoming a battery rush. Falling technology costs, rooftop solar, expensive grid electricity, and unreliable supply are driving this change. But its pace also signals declining confidence in the future cost and dependability of grid electricity. Repeated tariff increases and unreliable supply may lead consumers to expect more of the same. Economists call this, adaptive expectations. For many households and businesses, batteries are a way to prepare for that possibility and a warning to the power sector that confidence in the grid is weakening.

A household considering a battery looks beyond its latest bill to future tariffs, solar compensation, and interruptions. Businesses must also account for lost production, idle labour, and higher operating costs. Battery becomes more than an energy device; it becomes insurance against financial, operational,........

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