Haq's Musings: Pakistan Approves Net Metering and Feed-in Tariffs for Solar and Wind
Pakistan Approves Net Metering and Feed-in Tariffs for Solar and Wind
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.
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."
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Haq's Musings: Pakistan Approves Net Metering and Feed-in Tariffs for Solar and Wind