Distributed generation landscape in Pakistan: challenges and possible solutions

Over the past decade, significant advancements in renewable energy and small-scale distributed generation (DG) technologies have occurred. The adoption of DG under net-metering regulations in Pakistan is crucial for supporting the country's transition to sustainable energy. However, despite their technical maturity and potential economic competitiveness, its adoption remains limited within the country. This dissertation explores the multifaceted challenges hindering DG adoption, with a focus on understanding institutional misalignments and socio-technical inertia. The research is structured into three core papers. The first paper draws on extensive data collection methods, including surveys, interviews, and document analysis, to provide a comprehensive view of the obstacles faced by potential Distributed Solar PV (DSPV) adopters. Whereas, utilizing a neo-institutional framework, the second paper identifies misalignments in regulative, normative, and cognitive aspects, which impede the effective integration of DSPV in Pakistan. It underscores the need for regulatory reform, stakeholder engagement, and enhanced public awareness to overcome these barriers. The third paper focuses on the financial landscape for DSPV systems, specifically analysing a tailored financing Scheme rolled out by the central bank. This paper highlights significant operational challenges and bureaucratic hurdles that restrict access to green financing, particularly for small-scale solar projects. It calls for a re-evaluation of financial policies and the development of risk-sharing mechanisms to encourage broader participation in renewable energy investments. Overall, this dissertation provides valuable empirical insights into the socio-technical challenges of DSPV adoption in Pakistan. It contributes to the theoretical understanding of how institutional logics and market structures influence technology diffusion. The findings offer practical policy recommendations aimed at facilitating the large-scale adoption of DSPV systems, thereby supporting Pakistan's low-carbon transition. Furthermore, the insights gained have regional relevance, providing a framework that can be applied to other South Asian countries with similar socio-technical contexts. In conclusion, this dissertation addresses a critical gap in the literature on renewable energy transitions in developing countries. It provides a comprehensive analysis of the challenges and proposes actionable strategies to promote sustainable energy solutions, contributing to a more resilient and sustainable energy future for Pakistan and similar contexts.