An interview with Dr. Sardar Mohazzam – former Managing Director, NEECA: ‘Energy efficiency is Pakistan’s fastest power plant’
Dr. Sardar Mohazzam served as Managing Director of the National Energy Efficiency and Conservation Authority (NEECA), where he played an important role in advancing energy conservation and efficiency initiatives in Pakistan.
Working under the Ministry of Energy (Power Division), he led national efforts aimed at reducing energy wastage and promoting sustainable energy practices.
An expert in energy and environmental policy, Dr. Mohazzam, worked with government institutions, academia, and international development partners on issues related to climate change, sustainable energy transitions, and energy policy reforms.
A Fulbright scholar, he holds a PhD in public policy and a master’s degree in public policy from the Carnegie Mellon University.
Below is an edited excerpt of the conversation BR Research had with Mohazzam.
During his tenure at NEECA, he advocated the adoption of energy-efficient technologies, conservation standards, and policy measures aimed at strengthening Pakistan’s energy security and sustainability.
BR Research: When you assumed office, what were the key institutional gaps within the National Energy Efficiency and Conservation Authority (NEECA) that you prioritized addressing?
Sardar Mohazzam: My primary diagnosis was “Institutional Latency.” While the NEECA Act existed in 2016, the organization never had full time Managing Director. The Authority lacked the Regulatory Muscle to transition from an advisory body to a mandatory enforcer. From 2019 onward, I prioritized the Legal Codification of standards, the securing of funds and institutionalization of Energy Conservation Fund for liquidity and bridging the Federal-Provincial Jurisdictional Gap to ensure a unified national front rather than fragmented provincial efforts, and on-boarding the human resource and auxiliary resources. Similarly, the long-disputed mandate issues settled between NEECA and Pakistan Standards and Quality Control Authority (PSQCA) on appliances energy standards, and Pakistan Engineering Council and NEECA on Energy Conservation Building Code (ECBC-2023).
BRR: Looking back, what do you consider the most meaningful outcomes achieved during your tenure in advancing energy efficiency in Pakistan?
SM: First, the approval of the National Energy Efficiency and Conservation Policy 2023, which moved efficiency from a “recommendation” to a National Economic Imperative. Second, the successful rollout of Minimum Energy Performance Standards (MEPS) for appliances especially fans and lighting, purging inefficient products from the demand side. Third, the implementation of the Energy Conservation Building Code (ECBC-2023), which finally addresses the “thermal integrity” of our building and cities. Fourth, implementation of long-awaited EV Charging Infrastructure and Battery Swapping Stations Regulations with reduction in tariff by 40 percent by the government. Fifth, successful deployment of Geo-thermal for heating and cooling in NEECA Building, which can be implemented in the commercial, residential and office buildings. Sixth, banning of the incandescent bulbs through consensus of lighting association. Seventh, the Fuel Economy Standards encompassing the auto-industry. Eight, conceiving, designing and successfully implementing the On-bill financing mechanism for fan replacement program with estimated saving potential of 5000 MW in peak summer demand. Ninth initiated the Audit of Captive Power plants and established their efficiency benchmarks. Tenth, developed a revolving guarantee fund mechanism to establish Energy Conservation Fund as Super ESCO and ESCO regulations in the country. Eleventh, the pre-feasibility of Green Hydrogen in Pakistan. And the list goes on.
BRR: Pakistan’s energy debate traditionally focuses on supply expansion. Do you think demand-side management has finally gained policy traction during your time?
SM: Absolutely. We have successfully pivoted the discourse toward “Megawatts” (energy saved) and primarily this term was often felt confusing at different forums. By integrating energy efficiency into the Integrated Generation Expansion Plan (IGCEP), It has have proved that 1 MW saved is significantly more cost-effective than 1 MW generated, especially given our circular debt constraints and load-curves. Later, the inclusion of the Energy Efficiency and Conservation agenda in the IMF program, government first loss risk guarantee for on-bill financing mechanism for fan replacement program, and establishment of provincial designated agencies provides strong traction during this tenure. The current Israel-US and Iran war further bolster this fact that conservation measure in petroleum sector can be instrumental for balance of payment, and sustainable GDP.
BRR: Pakistan introduced the National Energy Efficiency and Conservation Policy 2023 and Action Plan. What concrete implementation progress has been made since its approval?
SM: We moved into the implementation Phase in early 2024, with dedicated sector plan for buildings, transport, industry, power/petroleum, and agriculture sector. This included the establishment of a Product Registration System (PRS) to track labeled appliances and the issuance of several Statutory Regulatory Orders (SROs) that mandate efficiency in public procurement. We have also collaborated for the National Carbon Market Framework to incentivize industrial efficiency as well as Green Taxonomy. Similarly, the donor such GIZ, World Bank, UNEP, UNDP, and JICA extended support to roll-out implementation across all sectoral initiatives. The provincial government, especially PEECA (Punjab Energy Efficiency and Conservation Agency) and SEECA (Sindh Energy Efficiency and Conservation Agency) were vibrant and on forefront for the implementation of the NEEC Policy 2023.
BRR: One of the most important regulatory developments has been the Energy Conservation Building Code 2023. How far have provinces and development authorities moved toward adopting and enforcing it?
SM: The momentum is shifting from federal mandate to Sub-National Adoption. The CDA building byelaws (Islamabad) are amended and is implementing ECBC-2023. Across Pakistan, all development authorities, municipalities, and local governments were systemically reached out to revise their byelaws as per Cabinet directions. There was close collaboration for implementation with the Punjab Energy Department / PEECA, Sindh Building Control Authority, and Peshawar Development Authority to integrate these codes into local building bylaws as a prerequisite for design approvals. Similarly, defense organizations such as MES have incorporated ECBC-2023 in their designs. Moreover, the Private sector organizations such ABAD (All Pakistan Builders Association), Pakistan Council of Town Planners and Architects and many other ensured capacity building and compliance through their platforms while signing MoUs.
BRR: In practical terms, how much energy savings could Pakistan realistically achieve if the Energy Conservation Building Code 2023 were fully implemented across new construction?
SM: In a country where residential cooling drives summer peak demand more than 16000 MW, ECBC-2023 creates a vital Strategic Buffer, effectively reducing the need for multibillion-dollar base-load power plants. Similarly, in winter the demand for gas for space heating can curtail peak gas demand. The ECBC-2023 proposed measures including proper insulation of residential, commercial, and public buildings could save around 30 to 40 percent of Pakistan energy both gas and electricity.
BRR: NEECA has been pushing minimum energy performance standards (MEPS) and labeling for appliances. What has been the uptake among manufacturers and consumers so far?
SM: The Information Asymmetry has been corrected in the market. The Pakistan Energy Label is now a recognized benchmark, and with promulgation of PPRA rules this will further improve the awareness of energy efficient products. For manufacturers, it is no longer optional; it is a license to operate. For consumers, Lifecycle Cost Awareness drives the shift—they now realize that an efficient appliance pays for itself through lower bills. The On-Bill Financing for Efficient Fan Replacement Program is based on implementation of minimum energy performance standards and labeling regime for appliances in Pakistan. Pakistan Fan Manufacturing Association, Pakistan lighting Association, and Pakistan Electric and Electronic Association were all on board for MEPS compliance. The surge in energy prices on the other hand signals the consumers to opt for energy efficient products.
BRR: Pakistan’s residential electricity demand peaks in summer largely due to inefficient fans, air conditioners, and appliances. Has the labeling regime materially shifted the market toward more efficient products?
SM: Yes. By mandating standards for fans (the primary driver of baseline summer load), we have started Shaving the Peak. The market for non-compliant, high-wattage fans is shrinking, replaced by Brushless DC (BLDC) motor (30 watts) technology which consumes 70 percent less power.
BRR: Pakistan faces chronic peak demand pressures in summer. To what extent can energy efficiency measures reduce peak load compared to building new generation capacity?
SM: Efficiency is our “First Fuel” and “Fastest Power Plant.” While a new generation project takes 5–7 years to commission, a mass-scale appliance replacement program can reduce peak load by up to 5,000 MW incrementally almost at the same time at a fraction of the cost of new generation.
BRR: Has NEECA made progress in coordinating with distribution companies to integrate energy efficiency programs into distribution-level planning?
SM: Yes, we did. During the National Electricity Policy 2021 formulation, it was clearly included. We have initiated the establishment of EE&C Cells within DISCOs. The goal was to transform DISCOs from passive “bill collectors” into active Energy Partners who help high-consumption consumers perform retrofits to reduce technical losses on the grid. DISCOs involvement to help collect the bill for replacement of inefficient fans through On-Bill Financing is successful example in this regard.
BRR: Industry accounts for a significant share of energy consumption. What progress has been made on energy audits, certification of energy managers, and efficiency retrofits in the industrial sector?
SM: We have launched the Training of Trainers (ToT) Program and got approval for the Certified Energy Auditors and Manager (CEM) program. Through the ToT program hundreds of trainers were trained with meager resources. We were moving toward Mandatory Energy Audits for “Designated Consumers” in the textile and cement sectors. This data-driven approach allows industries to identify “low-hanging fruit” retrofits that immediately boost their bottom line reducing their energy cost.
BRR: Do you believe Pakistan’s industrial competitiveness is currently being constrained by energy inefficiency?
SM: Indisputably. With rising tariffs, an energy inefficient factory is a failing industrial unit. Efficiency is now a tool for Export Survival. By reducing operational costs, we can ensure our products remain competitive in international markets sensitive to carbon footprints. I initiated collaboration with Ministry of Commerce’s National Compliance Center to develop capacities for CBAM (Carbon Border Adjustment Mechanisms) to make our products competitive in European Markets.
BRR: Transport is one of the fastest-growing energy consuming sectors. What progress has been made on vehicle fuel economy standards and EV charging frameworks?
SM: In 2024, we established the EV Charging Infrastructure & Battery Swapping Regulations. We have defined a charging hierarchy—from residential to ultra-fast highway chargers—and introduced a One-Window Operation to accelerate the rollout of charging stations where provisional license was issued in 15 days.
Similarly, efforts were made to engage the Pakistan Auto-manufacturers Association (PAMA) through the Engineering Development Board (EDB) to establish the Fuel Economy Standards for Pakistan transport sector. However, this is a long way to go where transition is undoubtedly inevitable.
BRR: How realistic is the electrification of transport in Pakistan given the current power sector constraints?
SM: Electrification is actually a Solution to our constraints. By utilizing Off-Peak Surplus Electricity either through solar (net-metering/net-billing) or at midnight to charging EVs, we can improve the capacity factor of our existing plants and significantly reduce our Petroleum Import Bill. The bi-directional EV batteries can also provide a strategic battery storage reserve for Pakistan if properly planned in different future scenarios.
BRR: One criticism often directed at NEECA is that policy frameworks exist, but enforcement remains weak. What structural obstacles have prevented stronger implementation?
SM: The primary hurdle is Institutional Fragmentation. Enforcement often lies at the provincial or district level, while standards are federal. Strengthening the Provincial Designated Agencies (PDAs) and establishing dedicated Energy Inspection Cadre are essential to close this gap. The market-based testing laboratories infrastructure and development of human resources at different levels will help stronger implementation.
BRR: Energy efficiency requires coordination across provinces, regulators, and ministries. How effective has inter-institutional coordination been?
SM: NEECA Board is big board with 23 members, and its sub-committees are representative of all concerned ministries and regulators as well as provinces. Although, it is tough and exhaustive to bring officials on board as there is no incentive (fee) to attend the Committee or the Board meeting. Nonetheless, the coordination has improved through the NEECA Board. However, “soiled” thinking remains. True success requires a “Whole-of-Government” approach where energy efficiency is integrated into industrial, agricultural, transport, energy, and urban planning. Post 18th Amendment, these are provincial mandates. It is often observed that given its strategic importance, NEECA should be strategically relocated under the Prime Minister Office.
BRR: Pakistan imports a large share of its energy. How significant could energy efficiency be in reducing the country’s energy import bill?
SM: This is the Big Win. National Energy Efficiency and Conservation Action Plan 2024-2030 targets saving9 MTOE, which translates to over $6 billion annually post implementation of all initiatives. This is a massive injection of fiscal space for a country struggling with foreign exchange reserves. The detailed programming with sectoral intervention in different years is available in NEEC Action Plan 2024-2030
BRR: In your assessment, where does Pakistan stand relative to regional peers in energy efficiency adoption?
SM: World Bank Group/ESMAP Regulatory Indicator for Sustainable Energy (RISE) assesses benchmarks national policy frameworks for sustainable energy. It assesses progress across four pillars: renewable energy, energy efficiency, electricity access, and clean cooking. Pakistan Energy Efficiency score has improved from 28 to 48 between 2020 to 2024 which is a great success, and it is expected that score based on 2025 performance will improve above 68 points.
We have leaped forward in Policy Framework, Building Codes, and Appliance Standards, but we lag behind peers in Market-Based Incentives and the maturity of our ESCO (Energy Service Company) sector. However, we need to be long term strategic implementation! A proactive systematically developed energy landscape with projected scenarios should be developed and pragmatic implementation should be initiated based on guided interventions.
BRR: What should be the top three priorities for the next leadership of NEECA?
SM: Energy Efficiency and Conservation savings are not properly accounted for in national GDP. First, to establish the comprehensive mechanism is through financial and regulatory mechanism of Energy Saving Certificates. Second, scaling of the Energy Conservation Fund (ECF) to de-risk private sector investments through revolving risk guarantee funds, blended finance, and re-financing facilities for industrial sector for de-carbonization. Third, a mandatory National Audit and Retrofit Program for all public and commercial sector buildings and transport facilities.
BRR: If Pakistan were to fully implement its efficiency roadmap by 2030, how much electricity demand reduction could realistically be achieved?
SM: We can realistically achieve a 20 to 25 percent reduction in projected demand. This doesn’t mean we use less energy than today; it means our economy grows without needing to build as many expensive new power plants. However, this will require financing mechanism forth is energy transition.
BRR: What was the hardest reform to push through during your tenure?
SM: Nothing was easy! Energy Efficiency and Conservation seem benign in its mandate, but this is more demanding. The number of stakeholders is vast, and they have vested interests and general public mind-set is hard to change. In government, the average time for implementation – from conceiving an intervention till on-ground execution is three years, for the agenda which is driven based on research through bottom-up approach in government. So, persistence is the name of the game!
Dealing with hundreds of small-scale manufacturers and convincing them that efficiency was a protection against low-quality imports, rather than a bureaucratic burden, required immense stakeholder diplomacy. There was a trust deficit among the industrial stakeholders for government officials, establishing that confidence was an uphill battle.
BRR: Is there anything you wish you had been able to achieve but could not be due to institutional or political constraints?
SM: I wish I had fully operationalized the ESCO (Energy Service Company) Market. While the policy and regulations exist, the commercial banking sector is still slow to recognize “energy savings” as valid collateral for loans. This Financial De-risking remains the final frontier for which efforts were underway to revitalize Energy Conservation Fund. The REIT Funds and Tokenization of assets will also have far-reaching impacts for which our organization in energy sector and more specifically in the area of energy efficiency and conservation should develop capacities.