Can Bitcoin fix Pakistan’s energy problem? The 2,000 megawatt mining strategy explained

The idle power paradox and Pakistan’s Bitcoin energy plan

As of March 2025, Pakistan boasted an installed power capacity of 46,600 MW, a slight increase from the previous year. Almost 14% of this capacity remains idle, especially during off-peak winter months when demand can drop as low as 12,000 MW.

The core issue here lies in capacity payments, fixed fees paid to power plants regardless of whether they produce electricity, which have soared as high as 2.1 trillion Pakistan rupees($7.45 billion) annually.

This cost burdens consumers even when plants are dormant.

Fossil fuels, renewables and an unstable grid

There’s an additional factor in this problem to consider.

Thermal power (coal and gas) accounts for 56% of installed capacity but contributes only 46% of actual generation, as older, inefficient plants remain on standby, collecting payments.

While hydropower, nuclear and renewables fill the gap, Pakistan’s rapid solar adoption has brought new challenges. Net-metered solar capacity surged from 1.3 GW to nearly 4.9 GW in one year, driven by over 17 GW of Chinese solar panels in 2024.

This solar boom, however, leads to grid instability from fluctuating supply, rising electricity tariffs for non-net-metering users and unequal access for poorer households.

Consumers face high electricity rates (~16¢/kWh for businesses), fueling the solar rush and deepening the cycle of costly imbalance.

Bitcoin’s energy solution in Pakistan

Pakistan’s energy woes, as outlined, presented a unique opportunity: redirecting up to 2,000 MW of idle power to Bitcoin mining and AI data centers.

Proponents argue this could monetize wasted off-peak electricity, ease grid strain by absorbing excess supply and generate revenue through digital assets.

Critics, however, warn of increased fossil fuel reliance, environmental concerns and whether benefits will truly reach ordinary Pakistanis.

The Bitcoin 2,000 megawatt mining strategy: Can Bitcoin solve the energy crisis in Pakistan?

Pakistan’s energy crisis, marked by expensive, underutilized power plants and soaring bills, took an unexpected turn in May 2025. The government announced a plan to redirect 2,000 MW of idle electricity toward Bitcoin mining and AI data centers.

This bold move was spearheaded by the newly formed Pakistan Crypto Council (PCC), led by Bilal Bin Saqib, a tech adviser to…