Pakistan Power Regulator Publishes New Feed-in Tariffs for Solar
Pakistan’s National Electric Power Regulatory Authority (NEPRA) has published for public comments its revised feed-in tariffs (FiTs) for solar energy projects of up to 100 MW, according to a report in PV-Tech journal.
The proposed FiTs are slightly lower in Balochistan, Sindh and Southern Punjab region than in Khyber Pakhtun Khwa (KPK) and the rest of Punjab. The proposal for years 1 through 13 includes Rs. 11.128 (US$0.105) per unit for southern region and Rs. 11.783 (US$0.111) per unit for northern region. The rates drop to Rs. 5.588 (US$0.053) and Rs. 5.917 (US$0.056) per unit for northern and southern regions respectively for years 14-25. The average for the next 25 years works out to Rs. 9.924 (US$0.094) and Rs. 10.507 (US$0.099) per unit for the two regions.
Last year, NEPRA, the nation's power regulator, approved a regulatory framework for solar and wind energy for both commercial and residential installations. The framework includes feed-in tariffs for commercial power producers and net metering for residential applications of up to 1 MW.
Under the new Net Metering Law, NEPRA, the Pakistani power regulator, will grant power generation licenses to solar and wind system owners. The owners will need to register the critical equipment used, particularly the make and model of inverter and generator used. Among other technical considerations, the generator must also install a manual disconnect device to take the system off the network if necessary, according to details published by PV Tech publication.
Net metering is a billing mechanism that pays solar energy system owners for the electricity they add to the grid. It allows a residential customers with rooftop solar panels to generate more electricity than the home uses during daylight hours and sell it to the power supply company. It will require a bi-directional meter (or two separate meters) for implementation.
Pakistan has already introduced feed-in tariffs (FiTs) for larger renewable power systems to supply electricity to the national grid on a commercial scale. It paved the way for a 1000 MW Quaid-e-Azam solar park being built in Bahawalpur.
Cost of solar power is rapidly declining. However, Pakistan's NEPRA's attempt to cut tariff down from 14.15 cents to 9.25 cents per unit is being resisted strongly by Zonergy Company Limited, a Chinese company working on Quaid-e-Azam solar park power project, according to a story in Express Tribune newspaper. This is in sharp contrast to the record low solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19) for 500 MW solar project by US-based Sun-Edison, according to Indian media reports.
Pakistan's renewable power policy and regulatory frameworks have drawn praise from international law firm Eversheds which has described the country as “one of the most exciting renewables markets globally, with an abundance of potential”. Alternative Energy Development Board (AEDB) of Pakistan's CEO, Amjad Ali Awan has said that "Pakistan’s renewable market is relatively new but it provides an attractive investment opportunity with compelling structures which make it bankable as well as marketable."
Net metering law is necessary but not sufficient to promote widespread use of renewable energy. It will take serious coordinated efforts of Pakistan power regulator NEPRA, the country's nascent solar industry and various utilities like K-Electric to start implementation. Meanwhile, consumers could install a stand-alone rooftop solar system that can be connected to the grid in future. They just need to make sure to select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to utilities.
Related Links:
Haq's Musings
Pakistan Deploys IT Apps to Improve Service in Public Sector
Solar Power For Pakistan Homes, Schools, Factories
Shakti Solar Model For Pakistan
Pakistan's New FIT Policy For Alternative Energy
Media & Telecom Revolution in Pakistan
Pakistan Building 1000 MW Wind Farms
Pakistan Launches Wind Farm Projects
Renewable Energy to Solve Pakistan's Electricity Crisis
Electrification Rates By Country
Wind Turbine Manufacturing in Pakistan
Pakistan Pursues Hydroelectric Power Projects
Solar Energy for Sunny Pakistan
Wind Power Tariffs in Pakistan
Source: PV-Tech |
Pakistan Solar Map Multi-year mean (2000-2012) of daily Global Horizontal Irradiance (GHI) for Pakistan in kWh/m2 [Note: preliminary, unvalidated results] Source: World Bank |
Last year, NEPRA, the nation's power regulator, approved a regulatory framework for solar and wind energy for both commercial and residential installations. The framework includes feed-in tariffs for commercial power producers and net metering for residential applications of up to 1 MW.
Under the new Net Metering Law, NEPRA, the Pakistani power regulator, will grant power generation licenses to solar and wind system owners. The owners will need to register the critical equipment used, particularly the make and model of inverter and generator used. Among other technical considerations, the generator must also install a manual disconnect device to take the system off the network if necessary, according to details published by PV Tech publication.
Pakistan has already introduced feed-in tariffs (FiTs) for larger renewable power systems to supply electricity to the national grid on a commercial scale. It paved the way for a 1000 MW Quaid-e-Azam solar park being built in Bahawalpur.
Cost of solar power is rapidly declining. However, Pakistan's NEPRA's attempt to cut tariff down from 14.15 cents to 9.25 cents per unit is being resisted strongly by Zonergy Company Limited, a Chinese company working on Quaid-e-Azam solar park power project, according to a story in Express Tribune newspaper. This is in sharp contrast to the record low solar tariff of Indian Rs 4.63 per unit (Pak Rs. 7.19) for 500 MW solar project by US-based Sun-Edison, according to Indian media reports.
Pakistan's renewable power policy and regulatory frameworks have drawn praise from international law firm Eversheds which has described the country as “one of the most exciting renewables markets globally, with an abundance of potential”. Alternative Energy Development Board (AEDB) of Pakistan's CEO, Amjad Ali Awan has said that "Pakistan’s renewable market is relatively new but it provides an attractive investment opportunity with compelling structures which make it bankable as well as marketable."
Net metering law is necessary but not sufficient to promote widespread use of renewable energy. It will take serious coordinated efforts of Pakistan power regulator NEPRA, the country's nascent solar industry and various utilities like K-Electric to start implementation. Meanwhile, consumers could install a stand-alone rooftop solar system that can be connected to the grid in future. They just need to make sure to select high-quality equipment, particularly inverter and switch, for this purpose which will most likely be acceptable to utilities.
Related Links:
Haq's Musings
Pakistan Deploys IT Apps to Improve Service in Public Sector
Solar Power For Pakistan Homes, Schools, Factories
Shakti Solar Model For Pakistan
Pakistan's New FIT Policy For Alternative Energy
Media & Telecom Revolution in Pakistan
Pakistan Building 1000 MW Wind Farms
Pakistan Launches Wind Farm Projects
Renewable Energy to Solve Pakistan's Electricity Crisis
Electrification Rates By Country
Wind Turbine Manufacturing in Pakistan
Pakistan Pursues Hydroelectric Power Projects
Solar Energy for Sunny Pakistan
Wind Power Tariffs in Pakistan
Comments
Pakistan is expected to see a sharp jump in operational solar PV capacity over the next few years, as several project developers have signed pacts to set up projects.
The Alternative Energy Development Board (AEDB) has reported that as many as 35 solar PV power projects are currently at various stages of development. These projects will have a cumulative installed capacity of 1,111 MW.
The largest of these projects will come up at the Quaid-e-Azam solar power park. The project currently has 100 MW of operational capacity. Apollo Solar Pakistan, Crest Energy Pakistan, and Best Green Energy Pakistan are working on 100 MW of solar capacity each. These projects are expected to be commissioned by the end of this year. The total capacity of the Quaid-e-Azam solar park will thus increase to 400 MW against a planned capacity of 1,000 MW.
Six other developers have been issued letters of support for the development of projects with a cumulative capacity of 47.84 MW. The ADEB has also issued letters of intent for the development of 25 projects with a combined generation capacity of 663 MW. These projects are expected to be operational by 2018.
Additionally, the government of Punjab province has also issued letters of intent for projects with 600 MW of capacity, of which 300 MW of capacity has already secured financing.
Several European and Chinese companies have already invested in Pakistan’s renewable energy market. Foreign investors poured over $3 billion into the renewable energy sector in Pakistan over the last year.
https://www.pv-magazine.com/2018/01/05/pakistan-updates-net-metering-scheme-unveils-clean-energy-investment-program/
Pakistan has updated its 2015 net metering scheme to make it more user friendly. The Government of Punjab, meanwhile, has unveiled a new Access to Clean Energy Investment Program, aimed at installing over 20,000 solar PV rooftop systems.
Pakistan has updated its net metering guidelines. Prime Minister Shahid Khaqan Abbasi officially launched the changes at a ceremony in Islamabad on January 3.
Overall, the framework is said to have been simplified, while net metering connections can now be gained in less than one month.
According to a statement on the Ministry of Information, Broadcasting & National Heritage Government of Pakistan website, Khaqan said issues of service and equipment quality had also been addressed.
He added that the key challenge now is to make the system “more efficient and reduce the cost of generation,” of which net metering is part of the plan.
Pakistan first introduced a net metering scheme on September 1, 2015. According to Net Metering Pakistan, as of last March 20, the Islamabad Electric Supply Company (IESCO) had connected 56 net metering systems and imported nearly 6 MWh of electricity.
Reducing the burden
The Government of Punjab is also looking to up the solar ante, having introduced The Access to Clean Energy Investment Program, aimed at reducing burden on the National Grid and improving environmental conditions through the implementation of off-grid, decentralized energy solutions.
It is looking to install solar PV rooftop systems on all basic health units (2,400), schools (20,000) and public buildings in the province.
In a document calling for expressions of interest (EOI), the government adds, “The program also includes conducting the energy efficiency audits on the public sector building, construction of a model net zero building and establishment of IT based Program Performance Monitoring System.”
Among the conditions required for project developers, are the criteria that they have completed at least two similar projects within the last 10 years, and have an annual turnover of Rs. 30.00 Million (around US$270,800) or higher.
To fund the program, the government has asked the Asian Development Bank for support to the tune of $87.69 million, which was already approved in November 2016.
“The ADB will support broader GoPb provincial government program for providing uninterrupted access to affordable and clean energy, as set out in the respective power sector master plan,” said the government.
Overall, two phases have been envisaged for implementing the plan: (i) solar PV rooftop systems on 10,861 schools in South Punjab; and (ii) systems on another around 9,700 schools in Northern and Central Punjab.
“The installed solar plants will provide electricity to more than 2.4 million students, including 30% girl’s schools,” said the government.
In addition, a 2.5 MW PV system will be installed at the Islamia University Bahawalpur in Punjab by Punjab Energy Efficiency and Conservation Agency (PEECA). And 2,400 basic healthcare units will receive solar PV rooftop installations.
According to Bloomberg New Energy Finance (BNEF), Pakistan will see PV installations increase 46% in 2017, up from 700 MW in 2016, to 1.020 GW.
https://www.reuters.com/article/us-pakistan-solar-electricity-feature/tea-haircuts-and-fish-bones-letting-the-light-into-pakistan-idUSKBN1FW0SM
Nizam Bijli installs pay-as-you-go solar systems in homes and businesses, where customers pay 2,000 Pakistani rupees ($18) a month over 16 months for three bulbs, one fan and two USB slots to charge their mobile phones.
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“Now I can eat fish and not worry about bones getting stuck in my throat,” Mohammad told the Thomson Reuters Foundation, describing how he enjoys a well-lit evening meal since his son, Ghulam Nabi, installed solar bulbs in his home three months ago.
For nearly a decade, chronic power shortages have hobbled Pakistan’s economy, leaving 144 million people without electricity or enduring lengthy blackouts, the World Bank says.
Globally, more than one billion people, or one in seven, lacked access to electricity in 2014 and many more suffer from poor supply, which keeps them trapped in poverty, reliant on wood, candles and kerosene, experts say.
These numbers may be grim but young entrepreneurs like Saad Ahmad see this as huge growth potential in Pakistan, which generates only two-thirds of its energy needs.
“There is massive opportunity for business,” said Ahmad, 26, chief executive of solar energy supplier Nizam Bijli, which has powered 1,300 homes since it started in 2016 and hopes to reach 1 million people by 2020.
“There is room for many companies to make a difference in the lives of these communities.”
“Now I can eat fish and not worry about bones getting stuck in my throat,” Mohammad told the Thomson Reuters Foundation, describing how he enjoys a well-lit evening meal since his son, Ghulam Nabi, installed solar bulbs in his home three months ago.
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“There is massive opportunity for business,” said Ahmad, 26, chief executive of solar energy supplier Nizam Bijli, which has powered 1,300 homes since it started in 2016 and hopes to reach 1 million people by 2020.
“There is room for many companies to make a difference in the lives of these communities.”
A similar ‘off-grid revolution’ is afoot across Africa due to fast-dropping costs and plenty of sun.
Currently only four percent of Pakistani households tap into solar power due to lack of awareness, limited supply chains and a shortage of consumer financing for relatively high up-front costs, according to the World Bank.
Nizam Bijli installs pay-as-you-go solar systems in homes and businesses, where customers pay 2,000 Pakistani rupees ($18) a month over 16 months for three bulbs, one fan and two USB slots to charge their mobile phones.
Ahmad believes this is affordable as families spend a similar amount on kerosene and charging mobile phones in nearby towns. The average income in Pakistan is about $1,450, according to World Bank data.
Ahmad is certain the only way out of Pakistan’s energy crisis is to bypass the grid and leapfrog straight into low-carbon sources like wind and solar.
“The whopping costs associated with grid extension (and) low electricity consumption by rural communities dispersed over large swathes presents a barrier to investment,” he said.
Pakistan already has one major solar park in the eastern province of Punjab, built with Chinese investment. Meanwhile, the parliament in Islamabad switched to solar energy in 2016 and sells excess energy it produces back to the grid.
TEA AND CIGARETTES
Allah Dino’s barber shop in Khorwah, 180 km (110 miles) east of Pakistan’s largest city, Karachi, is connected to the grid.
But intermittent power had forced him to close by sunset. Now he has solar, his business is open until close to midnight.
“There is never an idle moment and my men now work in shifts,” Dino said.
Next door in Bhittai roadside restaurant, solar has also been good for Mohammad Azeem. It allows truckers to stop by throughout the night to drink his tea, brewed on wooden stoves.
https://dnd.com.pk/complete-guide-to-setup-off-grid-solar-system-in-pakistan-for-home-usage/143170
Solar Guide Pakistan: We have been searching online for information regarding Solar setup in Pakistan but we often end up with a lot of questions about how to calculate the load and how many solar panels are required. Single Solar Panel in Pakistan costs around 12,000 – 14,000 which gives a rated output of 250 watts at peak time. However, the prices of solar inverters vary from 11,000 – 120,000 depending on the brand and capacity.
This Article will Cover the following Topics:
Solar Panel Price in Pakistan
Solar Inverter Price in Pakistan
How to install a solar panel
How to connect Solar Panel to Charge Regulator
How to calculate your house load and decide how many solar Panels are Required
Complete setup of Solar Panel System for home
Simply plug it into the socket and save: Small photovoltaic systems for less than 60000 PKR should tap into the sun, without having to deal with craftsmen, authorities and energy suppliers. We tried it.
Since solar modules are cheap, the computational production costs for solar electricity are well below the average electricity price paid by private households in Germany. Even without feed-in tariff, therefore, one’s own solar power generation can count, namely by the self-consumption of self-generated solar power. Ultimately, you save costs by buying less electricity from the energy supplier. A mini-system should not only be much cheaper than a “real” solar system on the roof but also save time and annoyance: about assembly, registration with network operators and Federal Network Agency for feed-in compensation and for the replacement of the electricity meter.
For less than 4000 you get “regenerated” electricity meter with Ferraris technology, so the classic wheel.
Companies such as Go Green Solutions, Infinitum Energy, Minijoule and Sun Invention offer kits that essentially consist of the actual photovoltaic (PV) module and a suitable inverter. Depending on the offer, there are also fastening materials and connecting cables. The assembly of the parts, the assembly at the intended location and the electrical connection should take over the buyer or hire a craftsman with it. But here is already the first rabbit in the pepper: Already comparatively small additional costs jeopardize the economy, so the sense of investment. After all, saving only starts when the PV system has generated its acquisition, installation and possibly repair costs. That lasts even in the best case several years. In addition, acquaintance with the amateur connection to the power grid can cause serious technical problems and risks being taken to account for violation of norms and laws. However, a photovoltaic system can hardly be hidden: after all, solar cells must stand in the blazing sun if they are ever to pay for themselves.
https://www.pv-tech.org/news/pakistani-bank-partners-nizam-energy-on-commercial-solar-financing
The collaboration agreement was signed by Babbar Wajid, Head of Product Development & Business Management – JS Bank and Usman Ahmad, CEO – Nizam Energy in the presence of team members from both organizations. Credit: JS Bank
Pakistani financier JS Bank has partnered with local solar firm Nizam Energy on a PV module financing solution directed at small and medium enterprises (SMEs).
The smart panel solution, named JS Smart Roshni, will allow SMEs that use Nizam’s solar modules and technical services to benefit from financing of up to PKR10 million (~US$86,500) at a mark-up of 6% from the bank, while reducing the SMEs’ dependency on grid power.
Babbar Wajid, head of product development and business management, JS Bank said: “Our partnership with Nizam Energy reflects our commitment to provide customers with responsible solutions for their energy needs, while creating medium to long-term savings. This initiative will help our clients increase operational efficiency in an environmentally responsible manner, and help reduce load on the national grid.”
Usman Ahmad, CEO, Nizam Energy, commented: “With easy and low cost financing solutions provided by JS Bank, we can further enable customers across Pakistan to avail solar power generation solutions with financing support.”
In other news, the Government of Sindh Province in Pakistan recently rejected submissions from all four bidders in its tender for 352 solar PV systems to electrify primary health facilities. Meanwhile, in February, the Pakistani regulator issued its tariff determinations for 300MW of solar with tariffs significantly below grid parity, for which Nizam was a co-sponser with Scatec Solar for 150MW worth of projects.
https://www.pv-magazine.com/2023/02/15/pakistani-regulator-backtracks-on-amendments-to-net-metering-tariff/
Amid fierce public opposition, Pakistan’s National Electric Power Regulatory Authority (Nepra) has decided not to proceed with proposed amendments to its 2015 net-metering regulations. Nepra originally planned to reduce the tariff paid to net-metered households from PKR 19.32 ($0.072)/kWh to PKR 9/kWh.
Nepra says it will not move ahead with its draft amendments to Pakistan’s 2015 regulations for distributed generation and net metering.
In September 2022, the regulator proposed replacing the current national average power purchase price of PKR 19.32/kWh with the national average energy purchase price of PKR 9/kWh for net-metered households that inject excess electricity into the grid. The measure would have affected 20,700 households.
After public consultation, the public and consumers “strongly opposed the proposed amendments, citing reasons that electricity through net metering is one of the most efficient methods and the proposed amendment in the regulations would discourage net metering/solar installation,” Nepra said in an official statement about its decision to reverse the proposed amendments.
In the same statement, Nepra argued that electricity generated through rooftop solar should be mainly for self-consumption and “not for commercial sale.” However, it conceded that electricity from net-metered households represents less than 1% of the national distributor’s electricity purchases.
“The economic benefits of net metering in terms of displacement of costlier electricity, savings of foreign exchange and incurring minimal losses, cannot be ignored,” it added.
In September, Afia Malik, a senior research economist for the Pakistan Institute of Development Economics (PIDE), told pv magazine that she expects just 23 MW of excess electricity to be exported into the grid by the affected net-metered households.
https://www.nation.com.pk/18-May-2023/unilever-pakistan-announces-its-partnership-with-k-solar
LAHORE-Unilever Pakistan has announced its partnership with K-Solar, a subsidiary of KE, to transition its operations to solar energy in Rahim Yar Khan and Karachi. This initiative represents a significant step towards achieving Unilever’s ambitious sustainability goals, including net zero emissions in its operations by 2039. Simultaneously, the firm will shed close to PKR 84 million a year in energy costs, facilitating the local economy by considerably reducing the strain on the national grid collectively generating approx. 2.3 million Kwh through renewable sources.
Unilever Pakistan’s Solar Captive Power Plant Phase 2 installation demonstrates their dedication to renewable energy solutions, leading to significant savings and CO2 reductions. At Futehally Chemicals Limited (FCL), the factory that manufactures Surf Excel for Unilever, the 362 kW system will save 496,035 kWh annually, reducing costs by approximately 18 million PKR and CO2 emissions by 233 metric tons. The 1000 kW installation at Rahim Yar Khan Factory will save 1,430,886 kWh, saving approximately 53 million PKR and a CO2 reduction of 662 metric tons per year. The 250 kW system at Rahim Yar Khan Estate will save 357,721 kWh, resulting in cost savings of 13 million PKR and a CO2 reduction of 165 metric tons annually. Unilever Pakistan’s investment in these projects reinforces their commitment to sustainability.
While Unilever’s own factories, offices, research labs, data centers, warehouses, and distribution centers account for only 2% of its total greenhouse gas footprint, the company acknowledges the significance of these emissions and is committed to eliminating them entirely. Abdul Hannan Ahmed Khan, Head of Supply Chain at Unilever Pakistan, expressed his enthusiasm for this collaboration, stating, “Unilever Pakistan is deeply committed to sustainable practices and minimizing our impact on the environment. This solar project is a testament to our dedication to combat climate change and create a brighter, cleaner future. By investing in renewable energy, we are not only reducing our carbon emissions but also driving positive change in the communities we operate in.”
Hashim Raza, CEO of K-Solar, emphasized the significance of joint efforts in realizing a sustainable energy future. He stated, “We are thrilled to partner with Unilever Pakistan on this journey. By combining Unilever’s leadership in sustainability and K-Solar’s expertise in renewable energy solutions, we are confident that we can make a substantial impact in reducing carbon emissions and promoting the use of clean energy sources.”
https://www.euronews.com/green/2023/06/13/spain-germany-poland-which-european-countries-added-the-most-solar-power-in-2022
Where are the major solar countries?
More countries than ever are real “solar contenders”, the report shows.
In 2022, the number of major solar countries - defined as those installing at least 1 GW annually - grew from 12 to 26. By 2025, the report predicts that more than 50 countries will be installing more than 1 GW of solar per year.
European countries make up 12 of the solar heavyweights, led by Spain, Germany, Poland, the Netherlands and Italy.
Poland’s solar development has flown past expectations. It’s mostly due to a surge in small rooftop ‘prosumer’ systems that enable homeowners to be rewarded for producing as well as consuming energy.
Ranked by the amount of extra solar they installed last year, here is the full list of the 26 major solar powers:
1. China
2. US
3. India
4. Brazil
5. Spain
6. Germany
7. Japan
8. Poland
9. The Netherlands
10. Australia
11. South Korea
12. Italy
13. France
14. Taiwan
15. Chile
16. Denmark
17. Turkiye
18. Greece
19. South Africa
20. Austria
21. UK
22. Mexico
23. Hungary
24. Pakistan
25. Israel
26. Switzerland
https://www.globalvillagespace.com/wapda-al-maktoums-private-office-join-hands-for-solar-power-development-in-pakistan/
Water and Power Development Authority (WAPDA) and the Private Office of Sheikh Ahmed Dalmook Al Maktoum have signed two strategic memorandum of understanding (MoUs) for the development of a floating solar power project of up to 1000MW on existing water reservoirs and the rehabilitation, upgradation, and capacity enhancement of four hydro power projects in Pakistan.
Chairman Lt. Gen. Sajjad Ghani (Retd) of WAPDA and Sheikh Ahmed Dalmook Al Maktoum expressed their mutual interest and enthusiasm to collaborate on future, long-term projects in Pakistan’s energy sector, with a specific focus on developing renewable energy solutions.
The MoUs aim to create a cooperative framework between the Private Office and WAPDA, facilitating collaboration and exploration of investment opportunities in Pakistan’s energy sector, particularly focusing on WAPDA’s small hydro power projects.
Read more: CPEC’s first hydropower plant in Pakistan begins full operations
Both parties have agreed to collaborate on upgrading and rehabilitating hydro power projects in Renala, Rasul, Chichokimalian, and Nandipur.
The parties have mutually agreed to collaborate in assessing the technical and economic feasibility of these projects, as well as formulating an implementation plan.
https://ieefa.org/resources/future-net-metered-solar-power-pakistan
Pakistan's current Distributed Generation and Net Metering Regulations offer incentives such as high buyback rates, fixed long-term generation licenses, and generous allowances for installed capacity. These have resulted in ideal payback periods, leading to a surge in net-metered rooftop solar photovoltaic (PV) capacity across the country.
The current policy offers 2-4 year payback periods for 5-25 kilowatt (kW) net-metered solar PV systems. Power utilities are concerned that higher penetration of distributed solar could place the distribution infrastructure at risk of failure and increase capacity payments on non-net-metered consumers.
The government is considering reducing buyback rates and a shift to net billing from net metering, which could increase payback periods for consumers with a higher self-consumption ratio but may incentivize oversized systems. A net billing scheme would therefore need to limit system size. Despite all policy shifts, the payback periods remain under 5 years
For the government, while maintaining or improving buyback rates can encourage more renewable energy adoption, this must be combined with grid optimization and digitization. For consumers, choosing the right system size for their consumption profile can significantly impact their return on investment.
https://ieefa.org/sites/default/files/2024-08/IEEFA%20Fact%20Sheet_Rationalizing%20Incentives%20for%20Solar%20PV%20in%20Pakitan.pdf
The recent surge in rooftop solarization in Pakistan has raised concerns among power distribution companies about
system reliability and increased capacity payments.
The government is considering several changes to current energy policies, including reducing buyback rates,
limiting system sizes, and transitioning from net metering to net billing.
However, even with the proposed changes, the payback period for 5-25 kilowatt (kW) distributed solar PV systems
remains below the 5-year threshold
A mere 50 megawatts (MW) of netmetered solar capacity was added
between 2016 and 2019. However,
consistently high electricity tariffs
and a substantial decline in solar
panel prices have led to a recent
surge in solar PV additions.
Pakistan’s abundant
solar potential offers
specific yields of 3.8
kilowatt-hours per
kilowatt peak (kWh/
kWp) to 6kWh/kWp.
Since 2022, net-metered solar PV
installations have nearly doubled, with
764MW installed in 2023.
In June 2024, Pakistan’s
on-grid net-metered solar PV
capacity was approximately
2200MW.
The recent surge in rooftop solarization in Pakistan has raised concerns among power distribution companies about
system reliability and increased capacity payments.
The government is considering several changes to current energy policies, including reducing buyback rates,
limiting system sizes, and transitioning from net metering to net billing.
However, even with the proposed changes, the payback period for 5-25 kilowatt (kW) distributed solar PV systems
remains below the 5-year threshold
Under the current mechanism, which offers the prevailing National Average Power Purchase Price (NAPPP) of PKR 27 per
kilowatt hour (kWh) as the buyback rate, the relatively higher per kW cost of smaller 5kW and 7.5kW systems results in
extended payback periods ranging between 2.4-4 years. As the system size increases, the payback period decreases, with
a 25kW system recording the shortest payback period of 1.74 years.
• Reducing the buyback rate to the National Average Energy Purchase Price (NAEPP) of PKR 9.69/kWh could lead to a
10%–56% increase in the payback period, depending on the level of consumption and system size. Consumers with smaller
installations and lower consumption experience longer payback periods.
• Reducing the buyback rate to PKR 15/kWh would only result in a 6% increase in the payback period for consumers with
100% self-consumption, while for lower-consumption profiles it may increase by 25%.
• Shifting to a net billing mechanism would increase the payback period for consumers with a higher self-consumption ratio
but could incentivize the installation of oversized systems.
https://asiatimes.com/2024/05/a-solar-power-policy-crisis-for-pakistan/
Search Labs | AI Overview
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As of August 2024, Pakistan's net metering regulations allow excess energy from solar systems to be sold back to the grid at the National Average Power Purchase Price (NAPPP). This price reflects the average cost per unit of power that the DISCOs purchase.
In June 2024, some speculated that the government might introduce changes to the solar panel policy, including a shift from net metering to a gross metering system. However, the Federal Minister for the power division, Ahmed Khan Lagari, has denied these changes and assured the public that the existing net metering system will remain in place.
A bidirectional meter, which measures both the electricity generated and consumed, can help consumers reduce their reliance on expensive grid electricity. This system can also make solar investments financially viable, promote energy independence, and reduce the strain on the national grid.
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Optimizing solar incentives and grid infrastructure in Pakistan can benefit power distribution companies and energy consumers | IEEFA
https://ieefa.org/articles/optimizing-solar-incentives-and-grid-infrastructure-pakistan-can-benefit-power
The regulations created the framework for the successful adoption of distributed renewable energy in the country, with approximately 2.2 gigawatts (GW) of net-metered rooftop solar PV capacity connected to the grid by June 2024.