Solar Power Surge Cuts Demand and Revenue for DISCOs Amid Rising Electricity Costs

Solar-Power

LAHORE: As rising electricity tariffs burden consumers, a growing shift to solar power has led to a 17% decrease in grid electricity demand, causing significant revenue losses for Pakistan’s power distribution companies (DISCOs).

To counteract this trend, the government introduced the Bijli Sahulat Package on Friday, offering an 18-50% discount on additional electricity usage from December to February for residential, commercial, and industrial consumers. The discounts vary by category and consumption slab, aiming to incentivize greater power usage during winter months.

Electricity rates in Pakistan have surged by over 50% in the last two years, leading to reduced industrial activity and pushing many consumers toward cost-effective alternatives like solar energy. According to Lahore Electric Supply Company (LESCO) data, 60,666 consumers are now generating 836 MW of electricity through solar power, resulting in substantial energy cost savings and decreased reliance on the grid.

Across the country, approximately 8,000 MW of solar power capacity has been installed, with around 3,000 MW connected to the national grid through net metering, allowing consumers to offset bills and contribute surplus energy. This widespread solar adoption, paired with economic challenges, has led to an 18% national drop in demand, with peak power needs falling from 20,000 MW to around 16,000 MW year-over-year.

This shift has made demand forecasts challenging for DISCOs, as September’s power generation fell 9.9% below projections. For the July-September quarter, electricity generation was 8% lower than the previous year, underscoring the impact of solar energy on Pakistan’s power dynamics.

Story by Aamir Naveed

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