Further 73% fixed costs and declining grid sales have been shifting the burden on grid customers
Iesco stood on top in the wake of its plausible performance to curb losses, improve recoveries and act in line with the time frame for new connections. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) has said it has initiated legal proceedings against government-owned distribution companies (DISCOs) due to their failure to credit solar energy units to net-metering consumers.
NEPRA confirmed on Friday that action has already been taken against DISCOs found violating net-metering regulations. The regulator further assured that a decision on the matter would probably be announced within the next 15 days.
During a public hearing, officials from the Power Division gave a short overview of the status of net-metering in Pakistan and the renewable energy transition over the year.
It was discussed that the country’s clean energy mix was 40% in 2015 which has now increased to 55% and is expected to surge further to 90% by 2034. Similarly, on-grid rooftop solar expanded from 5MW in 2017 with current trends predicting it to reach 14,319 MW again by 2034.
The impact on grid stability has been noted to have had some unpleasant effects causing system stress-duck curve as a result of fluctuating grid demand during the day, steep ramps, and voltage back feed strain issues.
Further 73% fixed costs and declining grid sales have been shifting the burden on grid customers.
NEPRA officials acknowledged that the net-metering framework, introduced in 2015 to expand the footprint of renewable energy and to enable consumers to meet their own electricity needs, was never intended to become a revenue-generation mechanism.
However, officials noted that over the past two years the sector has witnessed an exponential, nearly threefold year-on-year increase, with installed net-metering capacity now having reached 6,975MW across the national grid.
DISCOs raised concerns during the hearing regarding technical challenges arising from the rapid expansion of rooftop solar.
