PMO Seeks Report on Proposed Changes in Net-Metering Regulations

The Prime Minister Office (PMO) has sought report from Power Division on the concerns of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on the proposed amendments in Net Metering regulations.

FPCCI had written a letter to the Prime Minister Shehbaz Sharif, following a public hearing at Nepra on this issue and comments of Chairman Nepra, Tauseef H Farooqi.

FPCCI has submitted the following recommendations: (i) allow carry forward surplus units in the following months enabling the generator to use it according to the need and if desired donate to Not-for-Profit Organisation; (ii) batteries not only are a source of pollution but as stated above country cannot afford to spend precious foreign exchange on the import of batteries; therefore, to discourage the use of batteries, consideration is given to netting the off-peak hours’ units with peak hours units at a wheeling charge of 10%-15% of the NAPP which currently stand @ Rs. 19.32 per unit; (iii) Reliance on decentralized configurations in Pakistan is already high due to the unreliable power supply. Frustrated with decade-old injustices associated with a centralized energy sector, residents in huge numbers have switched to decentralized modes of energy generation, which rather should be encouraged; (iv) Net metering is a strong choice for a climate-safe and sustainable electricity system. Pakistan’s natural aptitude for these technologies is very high. Distributed PV systems can replace fossil fuel-based electricity generation.

It not only provides a chance to increase the use of renewable energy but also protection against significant transmission and distribution losses, as well as, a way out of Pakistan’s capacity payment trap and unstable power supply. Additionally, compared to the grid, distributed PV systems provide electricity at the lowest costs, which trend should continue to sustain; (v) to achieve energy security and arrest the menace of climate change, the motherland must move away from fossil fuel dependence. The grid can be expanded at a substantially lower cost by increasing net metering. Increased investor responsiveness and the evolution of net metering will be largely influenced by an integrated enabling framework, which recommendations also sustain as the government had on many occasion has said that the policy will shift from present electricity generation on fuel import.

FPCCI further stated that during an aerial view of the flood-affected areas, among other belonging Prime Minister has mentioned floating of solar panels. Nepra being advocate of CSR may consider setting up a specific Green Energy Fund and ask stakeholders to donate solar panels/ inverters and when required vendors be requested for installations.

The sources said Power Division has stopped Nepra from finalizing Net Metering regulations for sometime due to pressure from some quarters.

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