Energy Plus: AKF and EU to improve access to clean energy for 350,000 people in northern Pakistan

With funding from the European Union (EU), the Aga Khan Foundation (AKF) has launched Energy Plus – a new programme fostering a climate resilient and low-carbon economy and society in northern Pakistan.

The €31m ($35m) programme aims to improve access to clean energy for more than 350,000 people in Gilgit-Baltistan and Chitral. It will prioritise underserved communities with limited or no access to sustainable and reliable energy and those unlikely to be reached by the national electricity grid in the near future.

While Pakistan has made progress in increasing its electrification rate, significant disparities persist in access and reliability. All of the urban population has some level of energy access, yet reliability remains an issue. In contrast, only 54 percent of the rural population has access to energy, exacerbating environmental degradation and biodiversity losses due to heavy reliance on biomass – like firewood – from rural ecosystems as the primary energy source. Given that over half of the country's population lives in rural areas, addressing these disparities and promoting reliable and clean energy alternatives are crucial steps towards sustainable development.

At its core, the Energy Plus programme seeks to promote renewable energy solutions, enhance natural resources management, and support rural communities to build climate resilience. The programme has three key outcomes, outlined below:

Enabling renewable energy transition

A sustainable transition to renewable energy will involve the establishment of increased renewable energy generation capacity (up to 3.4 MW), the optimisation of electricity transmission and distribution networks, and the enhancement of access to reliable and affordable electricity for residential, public, and commercial use. Additionally, Energy Plus aims to create green economic opportunities, particularly for women and youth, through the establishment of eight renewable energy-powered technological hubs and more than 140 enterprises.

Enhancing natural resources management

Energy Plus will enhance natural resources management through the development and dissemination of improved plans for effective adaptation measures, integrating ecosystem and biodiversity management at the community level. AKF will partner with communities to plant more than 2.5 million trees in Gilgit-Baltistan and Chitral to mitigate environmental degradation, biodiversity loss, and severe deforestation.

Strengthening sustainable development

The programme will strengthen the capacity of public and civil society stakeholders for sustainable development planning. This will involve promoting energy efficient building designs (such as thermal insulation) and identifying 38 public buildings – including health facilities and schools – to ‘green retrofit’, providing a strong foundation for sustainable development. Energy Plus will also promote economic development by supporting small and medium enterprises and supply chains to use electricity more efficiently. This will include digitalising processes and collaborating with government partners in the energy and natural resources management sectors to support policy making and implementation.

To implement the programme, AKF will partner with other AKDN agencies and affiliates including Northern Pakistan Energy Limited, a subsidiary of the Aga Khan Fund for Economic Development; the Aga Khan Agency for Habitat; the Aga Khan Rural Support Programme; and Accelerate Prosperity.

Collaboration with the Government of Pakistan is central to Energy Plus – a programme which aligns with Pakistan's national priorities and commitments to international agreements such as the Paris Agreement. By promoting renewable energy adoption and fostering sustainable development practices, the programme will contribute to Pakistan's efforts to mitigate greenhouse gas emissions, adapt to climate change impacts, and achieve sustainable development goals.

Energy Plus represents a holistic approach to addressing the cross-cutting challenges of energy access, climate change, and sustainable development. It will foster collaboration between communities, the private sector, and policymakers, and leverage renewable energy solutions whilst promoting inclusive growth, enabling a greener future for the residents of Gilgit-Baltistan and Chitral.