Pakistan Introduces Net Metering Policy For Rooftop Solar Panels

Pakistani power regulators have 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.

Source: PV-Tech

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.

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

Pakistan's Twin Energy Shortages

Views: 2005

Comment by Riaz Haq on June 13, 2023 at 9:43pm

Pakistan among 26 countries which added over 1,000 MW of solar electricity in 2022

https://www.euronews.com/green/2023/06/13/spain-germany-poland-whic...

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

Comment by Riaz Haq on June 13, 2023 at 9:45pm

Pakistan among 26 countries which added over 1,000 MW of solar electricity in 2022

https://www.euronews.com/green/2023/06/13/spain-germany-poland-whic...

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

Comment by Riaz Haq on June 18, 2023 at 10:42am

Community solar subscriptions can reduce electricity costs for consumers - Profit by Pakistan Today


https://profit.pakistantoday.com.pk/2023/02/25/community-solar-subs...

Rooftop solar installations have been a success story in Pakistan for the past few years, with more than 20,000 net metering licenses issued by the end of 2021-22, adding 450MW to the system. The 10x reduction in solar panel prices during the last decade, steep escalation in electricity tariffs, and net metering have made solar installation one of the best investments, with a payback of fewer than four years, while providing an excellent hedge against inflation and tariff escalation. Advanced LFP (Lithium Ferrous Phosphate) batteries, with 15 plus years life, are also becoming financially feasible for peak hours use with imminent peak rate hike.

Despite the success of rooftop solar, there is still much room for growth. There are 610,000 households in Pakistan using 700 plus units and 16.8 million households consuming 300-700 units on average per month. The country can easily achieve at least 10,000MW of rooftop solar installations on just 5 percent of these houses during the next five years by continuing with the current net metering and export rate incentives.

For households using 500–700 units per month, rooftop installations can be accelerated by providing incentives such as reinstating low-cost loans, removing current limitations on net metering, and eliminating 17pc general sales tax on solar equipment for 10KW or smaller installations. However, rooftop solar is not a practical option for lower-income households (300–500 units per month consumption) because of higher cost per kilowatt for a smaller system, financial constraints, roof space availability, rental housing, and apartment living.

This is where community solar comes in as a practical and lower cost solution for these households and industrial facilities. In the community solar subscription model, consumers either purchase or rent a small portion of a large solar farm operated by the utility or a private developer. For example, for a 100 MW solar farm located near an industrial zone, multiple industrial facilities can purchase 20pc of this farm’s capacity (20MW), providing equity investment, while the remaining 80pc (80MW) can be subscribed (rented) by 80,000 low usage household (300-500 units) customers with a limit of 1KW for each.

Because of economies of scale, the per kilowatt cost of these solar farms is 15-20pc lower than a rooftop system, thus reducing the purchase or rental cost. Also, since the industry will be providing equity investment, there won’t be a need to find large investors for these solar farms.

Comment by Riaz Haq on June 18, 2023 at 11:09am

Solar power installations in Pakistan have seen remarkable growth, with an installed capacity of over 2,368 MW as of FY22, reflecting the rising popularity and potential of solar energy.

https://tribune.com.pk/story/2420254/can-pakistan-capitalise-on-sol...


In recent years, Pakistan has witnessed substantial investments in solar power projects, both domestic and foreign. It has introduced a financing scheme for renewable energy to make financing available for consumers in the private sector to invest in renewable electricity generation. Until February 2022, SBP had provided Rs74 billion (about $400 million) in financing to over 1,175 projects with a combined capacity of 1,375 MW in renewable energy.

The World Bank also reports that Pakistan has a potential of 40 GW of solar power and has set a target of achieving 20% of its electricity from renewable sources by 2025.

Pakistan has been heavily reliant on fossil fuels, particularly oil and gas, for power generation. However, the power production mix has undergone some changes in recent years.

According to the Pakistan Bureau of Statistics (PBS), as of 2020, fossil fuels accounted for approximately 63% of the total power generation, followed by hydropower at 29%, nuclear energy at 5%, and renewable energy at around 3%.

Despite its vast potential for solar energy, Pakistan has only scratched the surface of its capabilities. The country is blessed with abundant sunshine, making it an ideal location for solar power generation. Pakistan’s government, recognising the importance of renewable energy, has introduced favourable policies and incentives to promote solar energy development. The Alternative Energy Development Board (AEDB) offers net metering and feed-in tariffs to encourage residential and commercial solar installations.

The increasing attractiveness of solar energy is expected to drive significant capital investment in Pakistan. Foreign direct investment (FDI) in the renewable energy sector has already been on the rise. Solar projects, including large-scale solar farms and distributed solar installations, offer lucrative investment opportunities. The China-Pakistan Economic Corridor (CPEC) has also played a crucial role in fostering solar energy cooperation between the two countries.

Several challenges need to be addressed to fully harness Pakistan’s solar energy potential. These challenges include the high initial costs of solar installations, limited access to financing, lack of awareness about solar energy benefits, and inadequate grid infrastructure.

To overcome these obstacles, the current government is working on a new 25-year energy policy that seeks to have 20-30% of all energy derived from renewable energy sources by 2030. The policy also aims to reduce dependence on imported fuel products and increase the share of indigenous resources.

The current government has approved the Alternative and Renewable Energy Policy 2019, which provides incentives and facilitation for renewable energy projects. The previous government also faced challenges in implementing the National Electricity Policy 2021, which was approved by the Council of Common Interests in February 2021.

The policy aimed to ensure affordable, reliable and sustainable electricity supply for all consumers, but faced resistance from some provinces and stakeholders over issues such as tariff determination, power sector governance and distribution reforms. The shift towards solar energy as an attractive investment option signifies a significant turning point in Pakistan’s power production landscape. The country has ample solar resources that can be harnessed to reduce its dependence on fossil fuels, enhance energy security, and contribute to environmental sustainability.

With supportive government policies, increased foreign investment, and technological advancements, solar energy has the potential to revolutionise Pakistan’s power generation sector.

Comment by Riaz Haq on June 20, 2023 at 5:38pm

Renewables developer Oracle Power PLC has signed a cooperation agreement with Chinese state-owned energy company PowerChina to jointly develop a 1GW solar PV project in Pakistan.

https://www.pv-tech.org/oracle-power-powerchina-to-build-1gw-solar-...

Located in Oracle’s Thar Block VI land – where it is currently developing a coal minefield – the project will be built in the southeast province of Sindh.

The agreement includes a feasibility study both companies will conduct, however, Oracle has not disclosed any date for the commercial operation of the solar project.

Power generated from the plant will either be integrated into the national grid or sold through power purchase agreements.

Oracle Power has been active in Pakistan lately where it signed a memorandum of understanding (MoU) with Chinese state-owned China Electric Power and Technology for the potential development, financing, construction, operation and maintenance of a green hydrogen project in the Sindh Province.

Along with the construction of a green hydrogen facility, the MoU also includes the development of a hybrid project with 700MW of solar PV, 500MW of wind power and an undisclosed capacity for battery storage.

The 1GW solar PV project with PowerChina will be located 250 kilometres away from the proposed green hydrogen project Oracle aims to build in Pakistan.

Naheed Memon, CEO of Oracle, said: “The proposed development of the Thar Solar Project provides Oracle with the opportunity to not only develop a sizeable renewable energy project in Pakistan, but also to bring a long-term and sustainable business to our Thar Block VI asset.”

Comment by Riaz Haq on June 20, 2023 at 5:57pm

10,000mw solar power plants to be installed before summers 2023
These solar plants will generate 10,000 megawatts of electricity under the initiative, saving Pakistan's billions of dollars.


https://www.globalvillagespace.com/10000mw-solar-power-plants-to-be...

The prime minister directed that work on the project begin immediately in order to bring respite to the masses before the next summer season begins.

These solar plants will generate 10,000 megawatts of electricity under the initiative, saving Pakistan’s billions of dollars.

In the initial phase, the electricity generated will be distributed to government buildings, tube-wells, and families that utilize less units of electricity.

He has also directed that a conference be held next week to solicit bids for the project.

The prime minister, who presided over a conference in Islamabad to bring huge relief to the people, stated that solar energy should be used instead of imported oil. The decision was taken with an aim to save the foreign exchange rate as the country would not need to spend billions of dollars on importing fuel for electricity generation.

He urged that the project be implemented as soon as possible by the relevant authorities.

The situation of loss in income and rising electricity bills makes a huge economic and financial burden on households. Skyrocketing electricity bills have blown the minds of consumers.

Consumers strongly condemned skyrocketed electricity bills in the month of August, even during long hours of unscheduled load shedding followed by blackouts by Islamabad Electric Supply Company (Iesco) and demanded that the federal government take up this burning issue immediately.

The Rawalpindi bench of the Lahore High Court (LHC) Tuesday suspended the collection of fuel price adjustment in electricity bills.

Justice Jawad Ul Hassan, while hearing the writ petition filed against the increase of taxes, directed WAPDA and NEPRA not to charge tax on consumers’ electricity bills. The judge also summoned the head of IESCO on September 15 and issued notices to the parties concerned to appear before the Court on the next hearing.

Comment by Riaz Haq on July 21, 2023 at 4:37pm

LONGi and Nimir Energy Forge Strategic Partnership to Advance Solar Energy Solutions in Pakistan

https://solarquarter.com/2023/07/20/longi-and-nimir-energy-forge-st...


LONGi and Nimir Energy announced the signing of a Memorandum of Understanding (MOU) aimed at fostering collaboration in the development and deployment of solar energy solutions. This strategic partnership marks a significant milestone in the pursuit of sustainable and clean energy sources to meet Pakistan’s growing energy demand.

Under the terms of the MOU, Nimir Energy and LONGi will work together to explore opportunities and synergies in solar energy projects and capacity-building initiatives. The collaboration will leverage Nimir Energy’s expertise in project development and LONGi’s cutting-edge solar technology to drive the adoption of renewable energy in pan-Pakistan, pushing the government’s intent to promote solar.

Nimir Energy is part of Nimir Group, providing services in renewable energy with a primary focus on solar EPC for industrial, commercial and residential users. Nimir Group has been serving Pakistan and its business community since 1964 with a diversified range of products.


With climate action in full swing, Nimir would like to play a positive role in bringing in the right resources to ensure Pakistan’s transition to clean and sustainable energy. The company’s commitment to sustainable development aligns perfectly with LONGi’s vision to enable the world to transition to a low-carbon future through its industry-leading solar products and solutions.


LONGi, renowned for its high-efficiency solar modules and advanced photovoltaic technology, has emerged as a global leader in the solar industry. By joining forces with Nimir Energy, the company aims to expand its reach and accelerate the development of solar energy projects in key markets around the world.

“We are delighted to enter into this strategic partnership with LONGi, a company that shares our commitment to advancing renewable energy solutions,” said Waqas Ahmed Rana, COO of Nimir Energy. “Through this collaboration, we will combine our strengths and resources to drive innovation and promote the widespread adoption of solar energy, contributing to a more sustainable future.”

“LONGi is excited to join forces with Nimir Energy, a respected player in the renewable energy sector,” stated Ali Majid, Country head, Sales of LONGi. “Together, we can unlock new opportunities and create lasting impact by accelerating the deployment of solar energy projects worldwide. This collaboration exemplifies our dedication to addressing the challenges of climate change through technology innovation and sustainable business practices.”


With 90 terawatt-hours of total energy needed, Pakistan ranks among the top countries with huge potential for solar energy. Rising electricity prices and instability in the grid have added further to the woes of the average Pakistani consumer. LONGi envisions solving this problem by providing a cost-effective and high-quality solution to the public at large. As the biggest panel manufacturer in the world, LONGi plans to cater to all kinds of consumers with a focus on industrial users to provide services unparalleled in the market.

Comment

You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal


Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!




    Blog Posts

    Pakistanis' Insatiable Appetite For Smartphones

    Samsung is seeing strong demand for its locally assembled Galaxy S24 smartphones and tablets in Pakistan, according to Bloomberg. The company said it is struggling to meet demand. Pakistan’s mobile phone industry produced 21 million handsets while its smartphone imports surged over 100% in the last fiscal year, according to …

    Continue

    Posted by Riaz Haq on April 26, 2024 at 7:09pm

    Pakistani Student Enrollment in US Universities Hits All Time High

    Pakistani student enrollment in America's institutions of higher learning rose 16% last year, outpacing the record 12% growth in the number of international students hosted by the country. This puts Pakistan among eight sources in the top 20 countries with the largest increases in US enrollment. India saw the biggest increase at 35%, followed by Ghana 32%, Bangladesh and…

    Continue

    Posted by Riaz Haq on April 1, 2024 at 5:00pm

    © 2024   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service