Net Metering and Solar PV Prosumage in Pakistan: Growth and Challenges

Abstract

In the wake of an on-going energy crisis in Pakistan, National Electric Power Regulatory Authority (NEPRA) issued net metering regulations in 2015 in order to encourage consumers to contribute in power generation. Contrary to the anticipation of attracting large-scale prosumers after the launch of these regulations, the overall capacity installed so far remains insignificant. Moreover, an uneven distribution in terms of issued licenses as well as installed capacity across the power distribution companies (DISCOs), wherein the growth is concentrated in three major cities of Pakistan—Islamabad, Lahore and Karachi—is another challenge. Based on this insight, the study aims to probe the challenges to distributed generation (DG) in Pakistan. Primary data for this paper was collected from three primary stakeholders: the prosumers; the non-prosumers; and the DISCOs or the primary intermediaries. The findings indicate a number of challenges hindering DG growth in Pakistan including cumbersome application process; serious financial barriers; inaction of DISCOs; low trust in technology; absence of awareness programs and absence of fee-for-service (FFS) models. Finally, the paper gives a roadmap to overcome the aforementioned challenges, and catalyzing the prosumage drive.