LUMS’ National Workshop Explores New Role for Thermal Plants in Pakistan’s Clean Energy Future

LAHORE: The LUMS Energy Institute (LEI) convened a National Consultative Workshop on Renewable Energy Transition to advance implementation strategies for clean, affordable and reliable electricity. Building on its report, “The Net Zero Transition: A Pathway to Clean and Sustainable Electricity by 2040,” the consultation brought together key stakeholders from across Pakistan’s power sector to discuss practical steps towards a phased transition.

The workshop featured contributions from LEI experts Dr. Salman Rafiq Chaudhary, Engr. Umer Farooq, Dr. Muhammad Uneeb and Dr. Naveed Arshad, alongside representatives from the Ministry of Energy, NGC, ISMO, WAPDA, GENCOs, PPMC, NEPRA, SIFC, CPPA-G, state-owned and private thermal power plants, equipment manufacturers, technology providers, academia, think tanks and industry.

The workshop proceedings identified five implementation priorities: aligning renewable generation with transmission development; expanding energy storage and demand-side measures; strengthening grid flexibility; securing essential grid-support services; and assigning clear institutional responsibilities through a phased action plan.

A key focus was the potential conversion of suitable thermal generators into synchronous condensers, where technically suitable and economically viable, to provide ancillary services such as dynamic reactive power support, system inertia and short-circuit strength. Participants discussed repurposing existing assets and grid connections as fossil-fuel generation declines, while stressing the need to compare projects with alternative solutions on performance, cost, location and delivery time.

Thermal plant representatives and equipment manufacturers expressed strong interest in pursuing conversion opportunities. This interest creates an opening for collaboration on plant-specific assessments, conversion engineering and potential projects that retain the value of existing infrastructure while supporting increased renewable integration. Plant representatives sought clarity on costs, remaining equipment life, contractual obligations and future revenues, while manufacturers emphasized the need to establish technical and economic viability for each conversion.

The policy and regulatory discussion focused on a technology-neutral framework allowing different solutions to compete in providing essential grid-support services.

Syed Faizan Ali Shah, Advisor to the Minister of Energy, said, “The framework should be technology neutral and give equal opportunity to all technologies to provide ancillary services.” He also called for new and advanced technologies to be allowed to participate.

Engr. Altaf Hussain Malik, Managing Director, National Grid Company, highlighted the need for clarity on tariffs, licensing, performance and interconnection standards, and service valuation before investment. “We also need to assess the life-cycle cost and locational benefits of different options against the system’s requirements.”

Abid Latif Lodhi, Managing Director, PPMC, called for ancillary services to be unbundled from energy procurement and opened to technology-neutral competition. “We need to establish the system requirement, assess plant-level feasibility and develop clear regulatory and commercial arrangements for their procurement and compensation.”

Omer Haroon Malik, Executive Director, ISMO, said work was underway to develop a comprehensive framework for ancillary services alongside wider power-market reforms. “The objective is to establish the need for ancillary services and procure them through a competitive, technology-neutral process, whether the solution is a synchronous condenser, generator or another technology capable of meeting the required specifications.”

Muhammad Arfan Miana, Member (Power), WAPDA, emphasized consumer affordability. “We should be careful in setting the compensation mechanism based on availability and performance, rather than moving back towards earlier capacity-based models.”

For consumers, participants noted that effective integration of renewable energy and grid-support services could contribute to a more reliable electricity system and reduce dependence on imported fuels, with potential savings dependent on project viability and cost-recovery arrangements.

LUMS will consolidate the workshop’s recommendations and findings to inform implementation priorities and institutional responsibilities. The consolidated findings, including the results of the ongoing synchronous condenser pre-feasibility assessment, will be published before the end of 2026.

Dr. Fiaz Ahmad Chaudhry, Senior Advisor, LEI; Chairman, Board of Directors, National Grid Company; and Independent Director, ISMO, said, “This national consultation turns the findings of LUMS’ net-zero report into implementation priorities, with clear actions and responsibilities to advance the 2040 electricity pathway.” Concluding the workshop, Dr. Tariq Jadoon, Provost, LUMS, thanked participants and said, “LUMS will continue working with government and industry to translate research into policy and practical solutions for affordable, reliable and cleaner electricity.”