Pakistan is facing energy crises due to localized shortages, market manipulation, infrastructure disruption, rising demand, governance issues, climate and geopolitical events. In this situation Demand Side Management (DSM) is a promising solution to overcome the problem of energy crises. DSM strategy helps to manage consumer demand through energy conservation rather than to addition of new power capacity. In this study, Low Emissions Analysis Platform (LEAP) develops an energy model for Pakistan for the period 2022-2050. Three scenarios has been to constructed namely Baseline (BAS), Green Energy Policy (GEP), and Energy Efficiency (ENE) to predict the future energy demand, production, carbon emissions and the investment cost which covers capital, operational and maintenance costs. The model results suggest that DSM targets should be achieved through the implementation of ENE scenario. Predicted energy production and consumption under the ENE scenario are substantially less than those under the BAS scenario. The country can meet its 635.83,000 GWh energy demand with its 747.15,000 GWh energy production. Non-renewable sources produce 171.27,000 GWh, whilst renewable sources produce 575.88,000 GWh. According to this scenario, by 2050, CO₂ emissions will be produced around 93.16 million metric tons, requiring an investment cost of $46.80 billion for building new power capacity. The study provides a roadmap with a suggestive optimal balance between energy saving with DSM approach and utilizing renewable energy production to meet energy demand for different sectors of the economy.

Pakistan is facing the deepest energy and economic crisis of its history. In fact, the ongoing economic crisis is more or less due to the energy crisis. In spite of this critical situation, Pakistan began from a meager 70 MW installed capacity at the time of the creation of the country and now has raised that capacity to 40,923 MW with a huge transmission network infrastructure based on 58,679 km transmission lines and a consumer base of 36.5 million. Despite this massive progress, there is a continued power deficit, mounting circular debt, and large losses, which all indicate a depleted picture of the power sector. This paper primarily undertakes the diagnosis of these crises and provides a basic assessment of demand-side management as a potential avenue to overcome energy crises. In this context, a detailed overview of the energy and power sectors of Pakistan, including the outdated T&D system, is undertaken. These diagnoses suggest that poor administration, governance, and inappropriate policies have contributed to these crises. In the meantime, efforts to overcome these crises with expensive capacity additions have also failed to address the energy crisis. However, a careful review of the literature and on-the-ground matters indicates that DSM is the most reliable solution. Sectoral DSM potential is estimated. Implementing the proposed measures will help greatly to overcome these crises.

Pakistan is facing the worst level of energy and economic crisis of its history. The underlying reason of the economic crisis is basically due to the energy crisis. Various approaches have been adopted to tackle the energy crises which the country is facing for over 2 decades. Demand-side management (DSM) is the most potent and cost-effective option to redress the energy crisis, which, unfortunately, has been the most neglected strategy in Pakistan. DSM has the potential to save up to 10.0%–15.0% of primary energy to ensure the country’s future energy security. Laws and codes do exist, but ironically, the most vital element of DSM’s policy framework and implementation mechanism is missing. Hence, the main objective of this research is to develop a DSM model for Pakistan and analyze the reference and DSM scenarios. Low-emission analysis platform (LEAP) is used to develop Pakistan’s DSM model for the study period 2021–2050. The three alternative DSM scenarios developed include energy efficiency (EEF), energy conservation (EC), and load management (LOM), and they are all analyzed. The model results estimate the electricity demand forecast of 1009.8 TWh under the reference scenario in 2050, whereas DSM tends to result in a 26.38% decreased electricity demand compared to the reference scenario. The alternative DSM scenarios also outperform the reference scenario. In 2050, the EC scenario reduces consumption by 178.0 TWh and GHG emissions by 19.20 million metric tons, the EEF scenario reduces consumption by 110.30 TWh and GHG emissions by 10.04 million metric tons, and the LOM scenario suggests reduced consumption by 101.0 TWh and GHG emissions by 6.20 million metric tons. This study concluded that the DSM must be institutionalized in Pakistan by building a robust regulatory framework and execution mechanism at the government and utility levels.