Techno-Economic Analysis Of Widespread Microgrid Deployment In Pakistan’s Electrical Power Sector

Theme/Relevant Ministry:


M/o Power; NEPRA; Alternate Energy Development Board; NTDC

Project Brief:

Micro/Mini Grids deployment offer an excellent opportunity to increase access to electricity and to improve the life quality of people of Pakistan and complement the economy thereof. The study is based on simulation and analysis based research methods, wherein the techno-economic evaluation is performed for the potential regions of Pakistan modelled with their associated characteristics.

As per the study findings, Renewable Energy dominated Micro/Mini Grids presents much more financial viability as compared to fossil-fuel based Micro/Mini Grids, which will also help in reducing detrimental effects on the environment. At the same time, they offer a lucrative investment opportunity for the investors. Although Micro/Mini Grids present a very cost- effective solution for remote unelectrified areas of Pakistan, however, they may face technical issues if not properly designed. Direct Current Micro/Mini Grids and the application of Micro/Mini Grids for irrigation purposes present interesting cases, reducing the overall cost of energy. Some of the important factors to be considered to evaluate the feasibility of Micro/Mini Grids are electricity demand pattern, supply reliability requirement, discount rate and the project lifetime.

There is an urgent need of dedicated and comprehensive policy and regulatory framework to upscale Micro/Mini Grids deployment in Pakistan. It is imperative for the electricity planners to consider and evaluate Micro/Mini Grids before proposing huge investments for transmission and distribution infrastructure. One of the important considerations is to align the design of Micro/Mini Grids with the affordability of the customers in the specific geographical area, to create a win-win situation.

Public Policy Relevance:

In addition to policy recommendations, technical solutions for issues associated with the interconnection/ operation of on-grid and off-grid microgrids, such as frequency control, voltage control, harmonics, stability issues, etc., shall be proposed specifically in the context of a weak electrical power network in rural/remote areas. Moreover, possible investment models for massive scale microgrids deployment in Pakistan are also chalked out.


Final Research Report, Policy Brief and Journal article can be downloaded from the link:


CGP 01-039
Danial Saleem
Deputy Manager, NTDC, Lahore (PI)
12 months
Rs. 3,000,000