This study presents a policy- and market-ready pathway for rapidly decarbonizing Pakistan’s textile hubs by scaling off-grid and captive solar PV under the CTBCM framework, while addressing energy reliability gaps, investment barriers, grid constraints, and rising trade pressures such as the EU CBAM. Using field surveys, GIS mapping, stakeholder inputs, and techno-economic modelling across major clusters in Faisalabad and Multan, it shows that hybrid energy use is already widespread and provides a strong foundation for bilateral PPAs and renewable aggregation if wheeling, metering, and settlement rules are clarified. The analysis finds that CTBCM can materially improve project returns and emissions outcomes, though investor viability is highly sensitive to use-of-system charges, financing conditions, and standardized market rules. It concludes that a dual-track strategy—combining large, centralized renewable projects to minimize system costs and emissions with protected, investment-friendly distributed solar to mobilize private capital—supported by predictable tariffs, clean wheeling charges, standardized PPAs, CBAM-aligned MRV, and blended finance, is essential for securing both near-term competitiveness and long-term low-carbon market access for Pakistan’s textile sector.
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