Page 116 - eBook_Proceedings of the International Conference on Digital Manufacturing V2

Proceedings of the International Conference on Digital Manufacturing –
Volume 2

INTRODUCTION

For nearly two decades, Pakistan has struggled with a severe
energy crisis characterised by frequent power outages, escalating
electricity costs, high transmission and distribution losses,
widespread electricity theft, payment collection challenges, and
inefficient distribution infrastructure. These problems have
widened the gap between electricity supply and demand while
creating massive financial strain. The circular debt burden
continues to grow rapidly, reaching PKR 2.636 trillion in January
2024, an increase of PKR 84 billion in just one month from
December 2023 (Arif, 2024). In March 2024, Pakistan faced a
critical electricity supply demand imbalance, with installed
capacity of only 42,131 MW, and total consumption of 68,559
GWh. That shows a supply demand gap of 137.34%. This severe
shortage has triggered frequent price increases, with 14 separate
hikes between July 2023 and August 2024. The most substantial
increase occurred in March 2024, when rates jumped by PKR 7.06
per unit. As electricity costs continue to climb, Pakistanis are
increasingly turning to solar energy as a viable alternative. Solar
panel adoption is growing significantly among households and
businesses in seeking cost-effective solutions to escape the cycle
of rising utility bills.

Fossil fuels remain the primary source of energy generation
worldwide, particularly in developing nations. However, the
reliance on coal, oil, and natural gas presents significant
challenges. The finite nature of these resources steadily drives
rising costs, while their combustion releases carbon dioxide and
other harmful greenhouse gases into the atmosphere. This
environmental impact threatens ecosystems, degrades air quality
with adverse effects on human health, and accelerates climate
change, as shown in Figure 42.

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