Islamabad, February 9, 2026:
In a significant move aimed at promoting distributed and renewable energy generation across Pakistan, the National Electric Power Regulatory Authority (NEPRA) has officially notified the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026, providing a comprehensive legal framework for electricity consumers who also generate power.
Issued through S.R.O. 251(I)/2026, the new regulations have come into force with immediate effect under Section 47 read with Section 7(1) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
Enabling Consumers to Become Power Producers
The Prosumer Regulations formally recognize and regulate *“prosumers”—electricity consumers who generate power using *solar, wind, or biogas and interconnect their systems with the distribution network of a licensed utility.
Under the regulations, a distributed generation (DG) facility of up to 1 megawatt (MW) can be established by eligible domestic, commercial, industrial, agricultural, and general services consumers operating on 400V or 11kV connections, as well as single-point bulk supply consumers.
Clear Definitions and Standardized Processes
The regulations introduce detailed definitions to ensure clarity and uniform implementation. These include definitions of applicant, application, agreement, applicable tariff, billing cycle, and distributed generation facility, among others.
A standardized agreement format (Schedule-I) approved by NEPRA will govern the relationship between the licensee and the prosumer, ensuring transparency and regulatory certainty for both parties.
Focus on Renewable Energy Integration
NEPRA has limited distributed generation under these regulations strictly to renewable energy sources, including solar, wind, and biogas—aligning with Pakistan’s broader clean energy and climate commitments.
Electricity generated by prosumers will be interconnected at designated points within the licensee’s distribution system, with energy recording based on a 30-day billing cycle.
A Boost for Energy Transition and Investment
Industry stakeholders view the Prosumer Regulations 2026 as a crucial step toward:
- Accelerating rooftop and distributed solar adoption
- Reducing pressure on the national grid
- Encouraging private investment in clean energy
- Enhancing energy security and consumer participation
The regulations are expected to particularly benefit urban and industrial consumers seeking cost-effective and sustainable energy solutions amid rising electricity tariffs.
Way Forward
With a clearer regulatory pathway now in place, experts believe the success of the Prosumer Regulations will depend on efficient implementation by distribution companies (DISCOs), streamlined approval processes, and timely tariff notifications.
The notification marks another milestone in Pakistan’s gradual shift toward a decentralized, cleaner, and consumer-empowered power sector.
