Reducing net-metering tariffs could hurt the government’s renewable energy plan

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ISLAMABAD – The decision by the National Electricity Regulatory Authority (NEPRA) to amend the Distributed Generation and Net Metering Regulations 2015 to reduce the net metering distributor-generator payment by almost 30% is likely to undermine the current government’s plan to increase the share of renewables in the overall energy mix.

Instead of incentivizing the induction of renewable energy into a thermal generation system based on expensive imported fuel, NEPRA is determined to demotivate the existing as well as the potential aspirant to net metering, a official source at The Nation.

The reduction in net metering tariffs will be detrimental to the expansion of renewable energy in the country, the source said. “I don’t know who is guiding our solar policy which compels the regulator to allow around Rs 15/unit to solar generating companies but advocates a reduction of up to 30pc on net metering distributor generators,” the source said. . In net metering the government has nothing to lose but only gains and on the other hand on commercial production the government makes several commitments to investors.

The source claimed that during the tenure of the PTI, NEPRA raised the electricity tariff for the Oursun Pakistan Limited solar PV power plant by almost Rs 0.85/unit as part of the recalculation appeal. The company was owned by a top leader in the PTI government at the time, the source claimed. “The Authority hereby approves the following revised/amended tariff for Oursun Pakistan Limited and adjustments/indexations for solar power generation for delivery of electricity to power purchaser on plant basis 50 MW solar PV located at Gharo, Sindh Coastal Highway, Thatta District,” states a NEPRA decision available from the scribe.

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