Nepra deregulates small-scale distributed generation

KARACHI: The National Electric Power Regulatory Authority (Nepra) has deregulated the private generation of up to 25kW to promote renewable distributed generation and net metering.

“Distributed generation facility using solar or wind power generation of up to 25 kilowatt, connected with the network of a distributed licensee through the net metering facility, shall not require a generation licence from the Nepra,” a notification said.

The power regulator issued a total of 8,417 net-metering licences with an accumulated capacity of 146MW during FY21. The growth of distributed generation in Pakistan reveals a very steep positive trend line; from 1MW in 2016 to 3MW in 2017, 10MW in 2018 and then a sudden big jump in 2019 with the addition of 32MW, i.e., registering a growth of 220 per cent from 2018/19.

“There has been a growing trend for net-metering, as well as distributed generation through solar plants for sale to bulk power consumers given high electricity prices by the distribution companies,” the authority noted in its latest report.

The total installed capacity of net-metering consumers as of June 30 2021, reached around 232MW. “Induction of distributed generation, either through net-metering or in isolated mode, is good for the electric power sector on several accounts,” Nepra noted.

The distribution companies; however, view the growing trend for net-metering and other distributed generation as a threat for their consumer base.