In recent years, Pakistan’s energy sector has faced a pressing challenge — what to do with its aging, inefficient thermal power plants that are no longer viable yet remain critical for grid stability. These plants, such as KAPCO and TPS Muzaffargarh, were built decades ago and are now operating well beyond their design life. They produce electricity at extremely high costs, rely on imported fuels, and contribute heavily to carbon emissions.
At the same time, renewable energy technologies like solar and wind have become significantly cheaper and more reliable, offering a clear opportunity to replace these fossil-based systems. However, the challenge lies not only in adding renewables but also in maintaining grid stability in regions where these aging plants currently play a vital balancing role.
To address this complex issue, PRIED undertook a comprehensive study titled “Repurposing Pakistan’s Aging Thermal Power Plants: Pathways to Solar Integration and Grid Stability.” The research explored how existing fossil-fuel power stations—particularly KAPCO and TPS Muzaffargarh—can be repurposed into large-scale solar facilities using their existing land, infrastructure, and grid connections.
The research combined cost–benefit analysis with a detailed decommissioning assessment, examining both the costs and processes of safely retiring old thermal units. This included identifying salvageable components, estimating dismantling costs, evaluating land reuse potential, and comparing international decommissioning practices. The findings showed that while decommissioning involves moderate costs, these are far outweighed by the economic and environmental benefits of renewable conversion—resulting in rapid payback periods of 1 to 2.4 years, an 80% reduction in generation costs, and millions of tons of avoided CO₂ emissions.
By integrating decommissioning, repurposing, and renewable integration in a single framework, this study provides both a technical blueprint and policy roadmap for Pakistan’s clean energy transition. It calls for mainstreaming, repurposing and decommissioning frameworks within the generation planning, promoting green financing and CPEC Phase II investments, and developing a phased national strategy for retiring old fossil plants.
Ultimately, the study highlights that Pakistan’s path to sustainable energy lies not in extending the life of its aging infrastructure, but in repurposing it—transforming legacy thermal plants into renewable energy. The findings of this project aim to initiate a broader policy dialogue on how Pakistan can transform its legacy power infrastructure into renewable energy anchors—achieving energy affordability, stability, and sustainability in one cohesive strategy.