2 weeks Ago By Fawad Yousafzai
ISLAMABAD - The net metering consumers in the country have increased by 108 percent during the previous fiscal year taking the total capacity to 2500MW, as National Electric Power Regulatory Authority has anticipated that the target of an additional net-metering capacity of 3,420MW by 2031 will be achieved, much sooner than expected. The IGCEP 2022-31 sets forth an ambitious target to expand net-metering capacity by an additional 3,420 MW by 2031..
. If DISCOs do not hinder this initiative, it is anticipated that the current momentum towards roof top solarisation will enable the target to be achieved, much sooner than expected, said NEPRA State of the Industry Report 2023-24. The net-metering initiative in Pakistan has demonstrated significant benefits, including, but not limited to, improved voltage stability and reduced T&D losses.
The country has been rapidly embracing net metering owing to drastically reduced prices of solar panels and financial benefit for the consumers. Senate panel discusses voting rights for overseas Pakistanis By June 30, 2024, over 156,372 distributed generation solar facilities with more than 2,200 MW of capacity, including KE, have been installed with net-metering arrangement. The number of net-metering consumers within the country as on 30-06-2024 was 157,844 compared to 75,724 in FY2022-23.
The total capacity added from net-metering during FY2023-24 was 1,181MW, compared to 583MW added during FY 2022-23 raising the total net-metering installed capacity to 2,498MW within country. Despite the resistance from DISCOs in facilitating net-metering connections, the substantial increase in the number of net-metering consumers and their combined generation capacity over just one year underscores a growing dependence on alternatives to the national grid. Given the proven advantages of distributed generation, there is a need to encourage rooftop solar installations, shifting focus away from large-scale solar projects, which require substantial long-term capital and operational investments, while also burdening the government with sovereign guarantees and dollar-indexed tariffs due to the country’s economic situation.
The utility scale solar tariff, initially (reference) Rs17.117/unit in FY 2017, rose to Rs49.136/unit in year 2024.
Shafqat Ali made new FO spokesperson Rooftop solar projects offer distinct advantages as they incur no direct government financial commitment, are sited at load centres, minimise T&D losses, no indexations, no payment for NPMV, and improve voltage profiles. Furthermore, the financial liquidity of DISCOs is improved as they sell the electricity purchased from net-metering consumers and recover the amount against it but do not have to immediately pay the number of imported units to net-metering consumers. Unfortunately, many DISCOs perceive net metering as competition rather than a complementary energy solution, which has led to delays in approval and installation.
Numerous complaints have been filed with NEPRA and other forums regarding prolonged processing times, despite applicants meeting all necessary requirements. These delays undermine the potential benefits of renewable energy and grid efficiency. Additionally, reports of DISCO staff soliciting illegal payments to expedite applications exacerbate the problem, creating financial burdens for consumers and highlighting systemic inefficiencies and corruption.
These practices erode public trust and violate principles of transparency and accountability, ultimately hindering the development of a sustainable, efficient energy system. IHC grants bail to Rs3.2b tax fraud co-accused against Rs100 surety bond As of June 2024, 4,742 fully processed new connection applications were pending for net-metering with Discos with generation capacity of 58,822.
06KW. A notable challenge faced by DISCOs with net metering is buy-back rates for excess units exported by the net-metering consumers, which is linked to the National Average Purchase Price (NAPP). As the NAPP has increased over time, the tariff for net-metering has also risen.
Aside from the issue with buy-back rates, net-metering remains advantageous due to its low risk and liability profile. Considering the adoption of a well-balanced revised tariff structure for new net-metering connections, including renewal cases, could facilitate a more balanced outcome, beneficial for all stakeholders involved. Tags: metering consumers previous fiscal.
