The number of applicants seeking solar power net metering connections continues rising in the country as the National Electric Power Regulatory Authority (Nepra) issued a total of 8,417 net-metering licences with the accumulated capacity of 146MW during the fiscal year 2020-21. The solar net metering allows any of domestic, commercial or industrial consumers having a three-phase meter connection to be part of the power generation system by installing it on his/her premises (house, shop, factory, open spaces, etc). Under the arrangements, such a consumer may sell the additional energy to the respective power distribution company and make stocktaking (calculations) with it at the end of the month.
According to a Nepra report, to induct the new capacity to displace the costlier electricity, during 2020-21, it granted generation licences to 27 companies for accumulated capacity of around 1,591MW. These licences include, four hydropower plants for accumulated capacity of around 294MW; 18 solar power plants with the accumulated capacity of around 49MW; two licences to bagasse/biomass power plants with the accumulated capacity of around 47MW; one to nuclear power plant with the capacity of 1,145MW; one licence to the coal-based power plant with the installed capacity of 55MW and one licence was granted to a 350kW hybrid (solar+biogas) power plant.
The growth of distributed generation in Pakistan reveals a very steep positive trend line; from 1MW in 2016 to 3MW in 2017, 10MW in 2018 and then a sudden big jump in 2019 with the addition of 32MW, registering a growth of 220 percent from 2018-19. “There has been a growing trend for net-metering, as well as distributed generation through solar plants for [the] sale to bulk power consumers given high electricity prices by the distribution companies,” the authority noted in its latest report.
The total installed capacity of net-metering consumers as of June 30, 2021 reached around 232MW. “[The] induction of distributed generation, either through net-metering or in isolated mode, is good for the power sector on several accounts,” Nepra noted.
The distribution companies; however, view the growing trend for net-metering and other distributed generation as a threat for their consumer base. “DISCOs [distribution companies] need to realise that the power sector is gradually opening up for competition where retention of consumers will depend on improved quality of service and reduced cost for [the] end consumer.”