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.

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Views: 2051

Comment by Riaz Haq on February 12, 2018 at 6:11pm

Tea, haircuts and fish bones in off-grid #villages: Letting the #solar light into #Pakistan. #renewables

https://www.reuters.com/article/us-pakistan-solar-electricity-featu...

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.

--------------------

“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.

----
“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.

Comment by Riaz Haq on July 8, 2019 at 9:30am

Special instruction issued for promotion of Solar Energy, Net-Metering

https://www.thenews.com.pk/latest/490951-special-instruction-issued...

Power Division has issued special instructions to all DISCOs for promoting and further easing installation of net-metering in order to provide opportunity to all electricity consumers to curtail their monthly electricity bills besides optimal utilization of solar potential of the country.

The instructions were issued on Friday during one-point agenda on net-metering meeting of Central Power Purchasing Agency (CPPA).

As per the latest instructions, all the DISCOs have been directed to establish one window for interested net-metering electricity consumers. The appointment of focal persons will in this regard be ensured besides their active engagement on targets assigned by the Power Division.

Each officer at operational level will be assigned targets of net-metering which will be properly monitored. These targets and their results will count for greater points during their assessment for promotion and other benefits.

All the DISCOs are further directed to ensure proper briefing of consumers during open katcheris by the respective Superintending Engineers, XEN and SDOs.

All the DISCOs will also run a comprehensive awareness campaign for educating the consumers regarding benefits of net-metering.

The meeting while emphasizing the importance of net-metering in order to tap the solar energy potential of the country, also underscored the need to extend all out facilitation to the consumers by the DISCOs.

It was noted that although the rules and regulation for net-metering are adequate, however, the practical steps taken by DISCOs are not enough to promote it in order to fully and optimally utilize the potential.

It was further directed to strictly monitor all targets in this regard.

Earlier, the meeting was informed that a total of around 900 MW solar panels have been imported in the country. There are 1,190 electricity consumers with a cumulative capacity of 26MW who have installed net-metering so far.

Comment by Riaz Haq on September 28, 2021 at 6:40pm

Jeremy Higgs
@jeremyhiggs

Net-metering installations by quarter in Pakistan. Rocket


https://twitter.com/jeremyhiggs/status/1442734285371367426?s=20

-----------------

Over 16,000 (licenses issued)

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Which DISCOs are processing the most net-metering applications? IESCO and LESCO.

https://twitter.com/jeremyhiggs/status/1442740983754547204?s=20

------------------

Every generation licence is published on the NEPRA website. A bit of web scraping and PDF parsing to extract the data, lots of waiting, and out it pops!

https://twitter.com/jeremyhiggs/status/1442738903346188289?s=20

Comment by Riaz Haq on September 28, 2021 at 6:40pm

PlaceTech | 7 exceptionally green buildings from around the world

https://placetech.net/news/7-exceptionally-green-buildings-from-aro...


Interloop Denim Factory
Interloop denim

Location | Kasur, Pakistan

Occupier | Interloop – clothing manufacturer

Use type | Factory

Rating | Platinum (85) – December 2020

Size | 574,229 sq ft

Notable features

Includes specialised rainwater harvesting pits to recycle ground water
More than 30% of the area is dedicated to greenspace, including a planned “urban forest” with 3,000 trees, which will be planted over five years
30% reduction in its carbon footprint by introducing by introducing solar panels and rice husk boiler

Comment by Riaz Haq on September 28, 2021 at 6:48pm

KARACHI: National Electric Power Regulatory Authority (NEPRA) issued 3,334 net metering licenses with total installed capacity of 56.86 megawatt under the net-metering regime during 2019-20, a report said.

https://www.thenews.com.pk/print/736080-nepra-issues-3-334-net-mete...

Overall, a total of 3,361 generation licenses of cumulative 2,395MW for conventional power plants, renewable energy projects, hydropower projects and net metering were issued during the period under review, the official report said. During the last five years, ie fiscal year 2015-16 to fiscal year 2019-20, a total of 4,959 of net-metering licenses with total capacity of 86.36MW have been issued under the net-metering regime.

Lahore Electric Supply Company (LESCO) issued 886 new metering licenses for a capacity of 14.98MW. Islamabad Electric Supply Company (IESCO) issued 863 licenses for 9.99MW distributed generation. K-Electric Limited awarded 730 net metering licenses for a cumulative capacity of 12.24MW. Similarly, all electricity distribution companies facilitated the consumers opting for net metering and distributed generation.

Government through Alternate Energy Development Board (AEDB) has envisaged adding 5,000MW of solar-based generation by 2023 through net metering and other related initiatives.

Distributed alternate energy generation and net metering offer several advantages, including promotion of friendly environment, lessening burden on national grid, reducing grid investment, and community participation in power generation.

NEPRA is of the view that distributed generation facilities will result in optimum utilisation of renewable energy, which is currently untapped, resulting in pollution-free electric power. Solar is an indigenous resource and such resources should be given preference for energy security.

Comment by Riaz Haq on April 21, 2022 at 12:33pm

Under the project, a 150 MW floating solar subproject will be deployed in the Ghazi Barrage headpond and another floating project of similar capacity at the Forebay of the existing Ghazi Barotha Hydropower plant. The project would greatly enhance the electricity supply and help meet the rising demand for electricity in the country.

https://www.globalvillagespace.com/world-bank-wapda-to-setup-pakist...

Currently, according to the National Electric Power Regulator Authority state industry report 2021, Pakistan’s total installed electricity generation capacity is 143,588 GWH, of which a measly 4,521 GWH is produced by renewable sources such as solar and wind. Thermal sources account for 61.76 percent, whereas Hydel sources account for 27.02 percent. A shift toward renewable sources of energy was long pending and is a major component of Pakistan’s vision 2050.

The Water and Power Development Authority (WAPDA) plans to take on the Floating Solar Project (FSP or the Project) and, in that effort, seeks financing from the World Bank. Pakistan’s Water and Power Development Authority has prepared a Stakeholder Engagement Plan (SEP), and according to a report by Business Recorder, it is engaged in meetings with the World Bank to establish a 300 MW floating solar project in the country.

A delegation from the World Bank is expected to reach Pakistan today for a ten-day visit, for the initial assessment and evaluation of the project. The World Bank delegation will meet with all the relevant authorities and stakeholders, such as the Ministry of Water Resources, Water and Power Development Authority, and the Economic Affairs Division. After the visit, the World Bank mission would generate a feasibility report of the project, which would detail the proposed financing and the expected Return on Investment (ROI) in the following period.

The World Bank team includes but is not limited to; Gunjan Gautam (Senior Energy Specialist and Task Team Leader), Rikard Liden (Lead Energy Specialist and co-Task Team Leader), Imran ul Haq (Senior Social Development Specialist), Sana Ahmad (Environmental Specialist), Uzma Sadaf (Sr Procurement Specialist), Shafiq Hussain (Procurement Specialist), Noureen LNU (Financial Management Specialist), Mohammad Omar Khalid (Senior Consultant) to be supported by Amna W Mir (Senior Program Associate).

The World Bank mission is expected to hold a meeting with the project management unit of WAPDA on the 22 April in Islamabad. Following which, it is scheduled to meet with the officials of the Water Resources Ministry on 23 April. The mission would also listen to briefings and partake in discussion sessions with the relevant authorities.
According to the initial assessment conducted by the Water and Power Distribution Authority of Pakistan, the project is expected to strengthen the capacity of WAPDA as it increases the supply of electricity by financing 300 MW floating solar subprojects in water body of the already existing project of the Ghazi-Barotha complex.

Comment by Riaz Haq on December 26, 2022 at 4:35pm

Bilal I Gilani
@bilalgilani
During July-Mar FY2022, a total of 10,783 net metering based systems of 196.77 MW
capacity were installed by different segments of consumers. As of 31st December, 2021, net-metering based solar installations had reached up to 17,950 with a
cumulative capacity of 305.79 MW.

https://twitter.com/bilalgilani/status/1607487467828944897?s=20&...

Comment by Riaz Haq on April 5, 2023 at 8:04am

Pakistan issues tender for 600 MW of PV
The Pakistani authorities say that prospective developers must submit bids for a new 600 MW solar tender by May 8.

https://www.pv-magazine.com/2023/04/04/pakistan-issues-tender-for-6...

Pakistan's Alternative Energy Development Board (AEDB) has launched a tender to deploy 600 MW of PV capacity. It said the new solar projects will be built in the districts of Kot Addu and Muzaffargargh, Punjab province.

Selected developers will be expected to build the plants on a build, own, and operate transfer (BOOT) basis. They have until May 8 to submit project proposals. The deadline was originally set for April 17.

According to the latest statistics from the International Renewable Energy Agency (IRENA), Pakistan had 1,234 MW of installed PV capacity by the end of 2022. Last year, the nation newly installed 166 MW of solar capacity.

NEPRA, the country's energy authority, recently granted 12 generation licenses, with a total capacity of 211.42 MW. Nine of those approvals were granted to solar projects with a total capacity of 44.74 MW.

In May, NEPRA launched the Competitive Trading Bilateral Contract Market (CTBCM), a new model for Pakistan’s wholesale electricity market. The Central Power Purchasing Agency said the model will “introduce competition in the electricity market and provide an enabling environment where multiple sellers and buyers can trade electricity.”

Comment by Riaz Haq on May 21, 2023 at 12:17pm

Unilever Pakistan announces its partnership with K-Solar


https://www.nation.com.pk/18-May-2023/unilever-pakistan-announces-i...


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.”

Comment by Riaz Haq on May 30, 2023 at 7:03am

Solar grids bring relief to Sindh
19-kilowatt mini-grids powered by solar energy installed in Ishaq Jokoi


https://tribune.com.pk/story/2411592/solar-grids-bring-relief-to-sindh


Indus Earth Trust (IET), an organisation promoting green energy, has provided a life-changing solution for residents of Ishaq Jokio, a small settlement in the Sindh province of Pakistan.

The 19-kilowatt mini-grids powered by solar energy have transformed the lives of people, who have been accustomed to enduring long hours of power cuts during peak consumption in summer.

“Villages were selected according to a needs assessment survey, while the villagers provided the land where the 19-kilowatt mini-grids were installed. In this hamlet caressed by the sea breeze from the Arabian Sea, panels bred prosperity,” reported the China Economic Net.

According to the State of Industry reports from the National Electric Power Regulatory Authority (NEPRA), homes consume 50% of the total electricity delivered, and this demand is largely driven by cooling and lighting. The demand is estimated to increase from 106 terawatt-hour (TWh) in 2020 to 234 TWh in 2030, representing a 121% increase due to the rise in temperatures from climate change.

Pakistan’s energy problems have been exacerbated manifold by the Russia-Ukraine conflict and the global supply crisis. Pakistan’s fuel import bill surged to $23 billion in FY2021-22, a 105% increase from the previous financial year. The country’s per capita annual electricity consumption of 644 kilowatt-hour (kWh) is among the lowest in the world, which is only 18% of the world average, 7% of the developed countries’ average.

However, Pakistan’s efforts to embrace photovoltaics at all levels have started to pay off. Pakistan imported about $1.2 billion in photovoltaic modules in the last fiscal year, and in 2022, China’s photovoltaic module exports to Pakistan reached approximately $870 million, with a total installed capacity of 3.2GW, a year-on-year increase of 54% and 37%, respectively, said Liu Yiyang, Deputy Secretary-General and Press Spokesperson of China Photovoltaic Industry Association (CPIA). The Pakistan Solar Association (PSA) forecasted that the country’s import demand for photovoltaic products this year will be around $1.8 billion.

“Pakistan’s Solar Energy Market is expected to record a CAGR of 2.5% during the period from 2022 to 2027, with Net Metering-Based Solar Installations and Power Generation growing by 102% and 108% respectively,” said a KTrade Securities analyst.

A World Bank study in 2020 urged Pakistan to urgently expand solar and wind “to at least 30% of electricity generation capacity by 2030, equivalent to around 24,000 MW.” This provides huge opportunities for growth as currently, as of December 2022, Pakistan’s total domestic installed power capacity is 43,775 MW, of which photovoltaic installed capacity is 630 MW, accounting for about 1.4% only.

China’s efforts are also reaching millions of households in remote areas in the form of micro-power plants. Out of the $144 million foreign investment in PV plants in Pakistan, $125 million is from China, accounting for nearly 87% of the total.

“Pakistan and China are a perfect match for collaboration on renewable energy (solar PV) as China is a globally known giant when it comes to renewable energy technology, while Pakistan needs to move away from thermal to renewable for power generation,” stated a KTrade Securities solar PV industry report.

Recently, the Pakistan Solar Association (PSA) sent an official letter adjuring the federal government to ask SBP and other commercial banks to help in the solar imports through an annual limit of USD 800 million at a time when Pakistan is facing a renewable energy sector that is growing rapidly. The letter also urged the government to take steps to promote local manufacturing of solar panels to reduce reliance on imports and create job opportunities for the local population.

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