DISCOs confront music over net metering failure


Additionally, 73% fixed costs and declining network sales have shifted the burden to network customers.

Iesco remained in the lead thanks to its plausible performance in curbing losses, improving recoveries and acting in line with the schedule of new connections. PHOTO: ARCHIVE

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has said it has initiated legal proceedings against government-owned distribution companies (DISCOs) over their failure to credit solar power units to net metering consumers.

NEPRA confirmed on Friday that action has already been taken against DISCOs violating net metering regulations. The regulator also assured that a decision in this regard would probably be announced in the next 15 days.

During a public hearing, Energy Division officials gave a brief overview of the status of net metering in Pakistan and the transition to renewable energy during the year.

It was discussed that the country’s clean energy mix was 40% in 2015, which has now increased to 55% and is expected to further increase to 90% by 2034. Similarly, rooftop grid-connected solar expanded from 5MW in 2017 and current trends predict it will again reach 14,319 MW by 2034.

It has been observed that the impact on grid stability has had some unpleasant effects causing a system voltage reduction curve as a result of fluctuating grid demand during the day, steep ramps and feedback voltage issues.

Additionally, 73% fixed costs and declining network sales have shifted the burden to network customers.

NEPRA officials acknowledged that the net metering framework, introduced in 2015 to expand the footprint of renewable energy and allow consumers to meet their own electricity needs, was never intended to become a revenue-generating mechanism.

However, officials noted that in the last two years the sector has witnessed an exponential year-on-year increase, almost threefold, and the installed net metering capacity has now reached 6,975 MW across the national grid.

The DISCOs raised concerns during the hearing regarding the technical challenges arising from the rapid expansion of rooftop solar.

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