Smart Grids and Renewable Energy Communities in Pakistan and the Middle East: Present Situation, Perspectives, Future Developments, and Comparison with EU

The shift towards the integration of and transition to renewable energy has led to an increase in renewable energy communities (RECs) and smart grids (SGs). The significance of these RECs is mainly energy self-sufficiency, energy independence, and energy autonomy. Despite this, in low- and middle-income countries and regions like Pakistan and the Middle East, SGs and RECs are still in their initial stage. However, they have potential for green energy solutions rooted in their unique geographic and climatic conditions. SGs offer energy monitoring, communication infrastructure, and automation features to help these communities build flexible and efficient energy systems. This work provides an overview of Pakistani and Middle Eastern energy policies, goals, and initiatives while aligning with European comparisons. This work also highlights technical, regulatory, and economic challenges in those regions. The main objectives of the research are to ensure that residential service sizes are optimized to maximize the economic and environmental benefits of green energy. Furthermore, in line with SDG 7, affordable and clean energy, the focus in this study is on the development and transformation of energy systems for sustainability and creating synergies with other SDGs. The paper presents insights on the European Directive, including the amended Renewable Energy Directive (RED II and III), to recommend policy enhancements and regulatory changes that could strengthen the growth of RECs in Asian countries, Pakistan, and the Middle East, paving the way for a more inclusive and sustainable energy future. Additionally, it addresses the main causes that hinder the expansion of RECs and SGs, and offers strategic recommendations to support their development in order to reduce dependency on national electric grids. To perform this, a perspective study of Pakistan’s indicative generation capacity by 2031, along with comparisons of energy capacity in the EU, the Middle East, and Asia, is presented. Pakistan’s solar, wind, and hydro potential is also explored in detail. This study is a baseline and informative resource for policy makers, researchers, industry stakeholders, and energy communities’ promoters, who are committed to the task of promoting sustainable renewable energy solutions.