Energy Finance

The Challenge:

Pakistan's energy transition faces a critical financing bottleneck that extends beyond utility-scale projects to the distributed systems needed for broader energy access. While financing mechanisms exist for large infrastructure deals, banks struggle to evaluate and finance smaller-scale renewable installations for businesses and households, creating a gap in the transition to distributed energy systems. Meanwhile, stranded thermal assets worth billions continue draining national resources through expensive take-or-pay contracts, and distorted market structures discourage private investment. The result is a financing landscape where clean energy remains accessible only to affluent early adopters, while the broader market lacks the financial products needed for widespread renewable energy deployment across different project scales.

Our Work:

The Energy Finance Program works to transform Pakistan's energy financing landscape from an exclusive, self-financed system into an inclusive, market-driven ecosystem that enables renewable energy deployment across all economic segments. The program addresses the fundamental barriers that keep viable clean energy projects from securing capital from both private and public sources.

We focus on developing innovative financial instruments that reduce capital costs and make renewable energy accessible across economic strata. Our approach includes mechanisms that combine public catalytic capital with private investment, elevating the impact through scalable solutions. The program builds institutional capacity within Pakistan's financial sector and facilitates dialogue between financial institutions, government entities, and energy policymakers to ensure transition policies are designed with commercial viability in mind. By creating predictable market structures and policy frameworks that unlock both private capital and public financing mechanisms, we provide the investment environment required for long-term renewable energy commitments, ultimately transforming how capital flows to clean energy projects across the entire value chain.