Holistic Policy Revamp Urgent For Promoting Solar Energy As Cheapest Power Resource: Experts

The experts at a roundtable on solar net metering challenge on Friday demanded a holistic revamp of the existing policy as an urgent measure to promote solar energy as the cheapest power resource amid growing energy demand. The Sustainable Development Policy Institute and Energy Update organized the roundtable discussion on “Solar Net Metering Conundrum: Adapting Solar Net Metering to Evolving Market Dynamics in Pakistan”. In his opening remarks, Dr. Abid Qaiyum Suleri, Executive Director of SDPI, said that despite the government’s repeated assurances of no taxation on solar panels and reversing the net metering formula, it is pertinent to work out research-based solutions to the problem that had stirred debate among the concerned parties.

He mentioned that the policy reversal scenario in the energy sector was not new, as the nation had previously experienced such a transition when shifting from diesel-based vehicles to those running on CNG fuel. Dr. Suleri noted that due to technological advancements, solar panels were becoming more affordable, which would expedite the rollout of solar energy and put policy reversal on the cards. The SDPI Executive Director emphasized the need for a well-informed discussion on the pros and cons of the decision, taking into consideration the country’s environmental obligations, nationally determined contributions (NDCs), and the Carbon Border Adjustment Mechanism (CBAM) to be implemented in 2026, with international, regional, and local implications for the Pakistani industry.

Dr Khalid Walid, Research Fellow SDPI and Energy Expert discussed the dilemma of net metering in the country focusing on Pakistan’s consumption mix, decreasing demand, increasing tariff and dirty grid, NEPRA’s formula, and Pakistan’s NDCs.
Former Chairman of NEPRA, Touseef Farooqi, stated that the floodgates have opened and no one can stop the rollout of solar power technology. He emphasized that claiming a limit on solar energy rollout would be insane, as it would not benefit the national grid. He also suggested that the way net metering is currently being done should be investigated to ensure it caters to the needs of the most deserving communities. Farooqi pointed out that electricity at the rate of Rs12.3 could easily be integrated into the system, but the government was paying Rs23 per unit to elite power producers, which was being borne by the poorest of the country. He recommended that the cheapest electricity should be purchased, and net metering should be promoted at the community scale to produce affordable electricity. Farooqi urged the public to avoid misusing net metering to prevent discrimination against the poor and to contribute to the clean energy mix.

Abu Bakar from Amreli Steel said the prosumers were cross-subsidized by consumers as the ancillary services at the grid were being passed on to the grid and not paid by the solar consumers. He suggested that the government should introduce fa eed in tariff policy that would help induct major plants of solar in the center wave capital and avoid regulatory hiccups. He demanded that the overall policy revamp was needed and that renewables should be promoted along with improvement in ancillary services.
Moin Fudda said the power sector should support the industry by providing them with subsidized energy in the second shift to run its operations.
Fiazan, an Energy Expert said the Renewable Energy (RE) distribution policy was adopted to provide relief to the masses through solar power adoption.
“When power is inducted beyond a certain limit then it passes high voltage power flow that causes damaging impacts and causes reverse power flows impacting the system. 80% distribution power capacity of the transformer can be injected with solar within one feeder, but this principle is not being followed in many areas and it’s the responsibility of the distribution company, not the masses or the commercial sector,” he said.
Tauseef, IGCP said there was a need to ring da drastic change in our energy mix amid growing solar net metering as solar will compensate in the day. Still, the the load will shift in the evening on the system which will require high-speed generators to manage the burden.
“We will need peaking plants amid growing net metering, whereas the pricing mechanism needs to be shaped to avoid previous mistakes. However, the sector should create an electricity market with a competitive environment,” he said.

Naeem Qureshi, Managing Editor of Energy Update said the policy initiatives of the country in the energy sector lacked sustainability and stability and jeopardise consistency.
“A ten 15 year plan should be formed that should be unalterable by any government to ensure persistent growth in the sector for long-term output as policy continuity is crucial for the energy sector,” he said.
He suggested that a proper policy should be formed that should facilitate investors, local consumers, and the market.
Energy Update would ensure ffollow-upof the policy recommendations by SDPI at the government level, he added.

Dr. Irfan Mirza said the government decisions on the solar power sector should be guided by the policy recommendations of this forum.

“We need to reckon with global trends in the solar power sector and understand the risk of events overtaking planning due to the AI-based information era. However, there should be gradual indigenization in adopting solar power solutions as prosumers need to be further facilitated to adopt storage capacities by the utilities,” he added.

Irfan Ahmed, Energy Expert said solar power consumers are our future power producers and that demand policymakers look after their financial and other needs.

Nisar, Chairman of RE Association said the feedback and recommendations from this brainstorming session are commendable.
“No doubt solar and net metering are viable solutions that are working around the globe. All the stakeholders here recognize this,” he added.

At present, utility companies’ role needs to be considered which is changing gradually the world over as energy managers, he added.
Solsolarlart meter system should be allowed as storage batteries will pour over time and it will add to the capacity of the government, he added.