Additionally, 73% fixed costs and declining network sales have shifted the burden to network customers.
Iesco rose to the top thanks to its plausible performance in reducing losses, improving recoveries and meeting deadlines for new connections. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) said it has initiated legal action against state-owned distribution companies (DISCOs) over their failure to credit solar power units to net metering consumers.
NEPRA confirmed on Friday that action had already been taken against DISCOs found guilty of violating net metering regulations. The regulator further assured that a decision on the matter is likely to be announced within the next 15 days.
At a public hearing, officials from the Electricity Division gave a brief overview of the status of net metering in Pakistan and the transition to renewable energy during the year.
It has been discussed that the country’s clean energy mix was 40% in 2015, but has now increased to 55% and is expected to rise further to 90% by 2034. Similarly, on-grid rooftop solar increased from 5 MW in 2017, with current trends predicting it to reach 14,319 MW again by 2034.
It was noted that the impact on grid stability had unpleasant effects, causing a stress-duck curve of the system due to fluctuating grid demand during the day, steep ramps and voltage feedback issues.
Additionally, 73% fixed costs and declining network sales put the burden on network customers.
NEPRA officials acknowledged that the net metering framework, introduced in 2015 to expand the renewable energy footprint and allow 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 grown exponentially, almost tripling year-on-year, with installed net metering capacity now reaching 6,975 MW across the entire national grid.
DISCOs raised concerns during the hearing regarding technical challenges arising from the rapid expansion of rooftop solar.
