South Asia's power sector is steadily reducing its vulnerability to global fossil fuel price shocks, driven largely by the rapid expansion of solar energy. According to a recent analysis by Ember, the 2022 global energy crisis-triggered by supply disruptions-exposed the risks of heavy reliance on imported LNG and fossil fuels, prompting varied responses across the region.
Divergent National Pathways
India had already installed 50 GW of solar by 2021, supported by long-standing policy and cost competitiveness. Coal remains dominant, but domestic production limits energy security risks.
Pakistan saw a surge in rooftop solar following the 2022 LNG price shock. Ember estimates solar generation rose from 7.7 TWh in 2022 to 36.6 TWh in 2025, avoiding an estimated USD 12 billion in LNG imports.
Bangladesh absorbed fuel cost increases through subsidies, slowing rooftop solar adoption while increasing fiscal pressure.
Sri Lanka turned to solar and wind to reduce reliance on costly oil-based generation. Nepal and Bhutan, powered largely by hydropower, remain insulated from fossil fuel volatility and benefit from cross-border trade with India.
Solar Addresses Only Part of the Challenge
South Asia remains heavily dependent on imported oil and gas. Most countries produce little to no domestic oil, and a significant share of imports transits through the Strait of Hormuz, making supply security a critical concern.
Electrification and Regional Grids Offer Solutions
Reducing fossil fuel dependence requires extending renewables beyond the power sector. Transport, industry, and buildings still rely heavily on imported fuels. Electrifying these sectors-particularly road transport-could yield significant savings.
Greater regional grid integration also holds promise. Cross-border electricity trade via India already supports Bhutan, Nepal, and Bangladesh. Expanding interconnections to Sri Lanka and Pakistan faces political and technical barriers, but progress could enable seasonal balancing of renewables and further reduce import reliance.
Conclusion
Solar energy has proven effective in lowering fossil fuel exposure in South Asia's power sector. However, deeper reductions will require accelerating electrification of end-use sectors and strengthening regional grid infrastructure.
As a specialized solar mounting structure manufacturer, Longsun Green supports the region's clean energy transition with reliable, corrosion-resistant mounting solutions.
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