The locally owned company charges subsidised rates in line with the government’s tariff policy.
Chairman of the Aga Khan Rural Support Programme (AKRSP), Mr Hussein Tejani, inaugurated a 500kW community-managed micro-hydro powerhouse that is now providing reliable, clean energy to more than 700 households and commercial entities in Umalsat and the far-flung Darkut in Silgan Valley.
AKRSP supported the community in constructing the powerhouse under the Central Asia Poverty Programme (CAPP). Residents have since established a community-owned utility company, Silgan Electric Limited, to manage its operations.
The locally owned company charges subsidised rates in line with the government’s tariff policy: PKR 3 per unit up to 100 units, PKR 4 up to 200 units, and PKR 5 up to 300 units. According to the secretary, the maximum monthly bill reaches around PKR 2,000, even when households use electricity for lighting, cooking, and heating.
Rahimullah, General Secretary of Silgan Electric Limited, said the project had restored dignity to the community as well as light:
“For years we survived on unreliable and limited energy. Now, with electricity we can call our own, we are able to power schools, health centres, and small businesses. It is not just energy—it is hope for a better future.”
Despite its vast hydropower potential, Gilgit-Baltistan has long been plagued by chronic electricity shortages. Each winter, demand far outstrips supply, forcing households to rely on wood, kerosene, or diesel for heating and light. Against this backdrop, community-run micro-hydro projects have become lifelines, offering decentralised and renewable energy solutions in valleys beyond the reach of the national grid.
The Umalsat powerhouse is part of a wider transformation across the mountains. Since the 1980s, AKRSP has been at the forefront of this movement, supporting 169 micro-hydro projects ranging from 16kW to 800kW, with a combined generation capacity of 13,844kW. These initiatives benefit thousands of households and reduce around 12,500 tonnes of carbon dioxide emissions annually. Their impact has been recognised globally, with awards such as the Ashden Award and the Energy Globe Award.
In electricity-surplus villages such as Umalsat, AKRSP has also launched the Madad Electric Cookstove (MEC) Project in partnership with Third Pole Solutions. The initiative aims to distribute 50,000 clean, energy-efficient cookstoves powered by renewable hydroelectricity and directly linked to community micro-hydro schemes like Umalsat. Before rollout, AKRSP surveyed 122 micro-hydro plants across Gilgit-Baltistan and Chitral to assess capacity, seasonality, and reliability, ensuring compatibility and proper targeting of households.
AKRSP’s General Manager, Mr Jamil Uddin, said projects like Umalsat’s powerhouse and the rollout of electric cookstoves show how even the most remote communities are addressing their own energy needs while contributing to global climate solutions:
“With each project like this, we are not just producing electricity. We are producing resilience, opportunity, and a model of how communities themselves can lead the way out of crisis.”
