Ruling out any change in the government’s policy and priorities regarding solar energy, Prime Minister Shehbaz Sharif on Sunday instructed the authorities concerned to clear all ambiguities among the people regarding the solarisation policy through facts and figures.
The prime minister said this while chairing a review meeting on the matters related to the Power Division. He said there was no change in government’s policy on solar energy and promotion of renewable energy remained a priority.
The statement came days after the Economic Coordination Committee (ECC) of the Cabinet approved amendments to the existing net metering regulations of rooftop solar under which the buyback rate was slashed down from Rs27 to Rs10 per unit.
The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers.
As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs10 per unit. Furthermore, the committee approved the proposal, subject to the ratification of cabinet, to allow the National Electric Power Regulatory Authority (Nepra) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.
It was clarified, however, that the revised framework will not apply to the existing net-metered consumers who had a valid license, concurrence, or agreement under the Nepra (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first.
Whereas, Federal Minister for Energy Sardar Awais Ahmad Leghari on March 16 claimed that the number of solar net-metering consumers would increase after new regulations.
During the meeting, Prime Minister Shehbaz also directed for the swift settlement of all legal and other formalities related to the liquidation of generation companies and expediting the privatisation process of power distribution companies, according to a PM Office press release.
He said that a package was being formulated to reduce the electricity tariffs, which would be announced soon to provide further relief to the public in terms of electricity prices.
He directed the Power Division, Water Resources Division, and Petroleum Division to improve their coordination for a comprehensive strategy in the energy sector.
The meeting was attended by Federal Minister for Power Division Sardar Awais Leghari, Advisor to PM Dr Tauqeer Shah, and other senior government officials. Federal Minister for Economic Affairs Ahad Khan Cheema and the Advisor to PM Muhammad Ali joined the meeting via video link.