LAHORE: The State Bank of Pakistan’s (SBP) decision to allow commercial banks to provide cheaper loans for converting tube well operations to solar power to take advantage of the net-metering facility has resulted in an overwhelming response from power distribution companies such consumers have received all over the country.
Under the terms of the regulations, pipe-to-well connections seeking net metering at a load of up to 25 kW do not require approval from the National Electric Power Regulatory Authority (Nepra) for the issuance of a generating license. dusk learned.
Not only will the facility convert most of these connections to solar, but it will also allow consumers to produce and use the electricity themselves, and to sell the extra/surplus electricity to the respective nightclubs. It also controls the technical and commercial losses (electricity losses either due to theft or due to technical reasons).
“The pipe-well links can be switched to net metering but the response has not been good due to significant investment (approximately Rs 2-3 million for each link), lack of lending facility and lack of awareness. Now, SBP has announced a credit facility with a 6 percent premium for launching such small programs,” Altaf Qadir, Director General of Market Implementation and Regulatory Affairs, Lahore Electric Supply Company, told dusk.
In addition, rising electricity tariffs due to fuel price adjustment and other issues have forced consumers with pipe well connections to turn to us about this,” he added.
The net metering project was launched nationwide in 2016. It allows any household, commercial, industrial and other consumer who has at least one three-phase meter connection to be part of the electricity generation system by installing it on his property (house, shop, factory, open space, etc.). As part of the regulation, such a consumer can sell the additional energy to the respective energy supply company and thus carry out an inventory (calculation) at the end of the month.
Because the system allows consumers to generate electricity from one kilowatt to one megawatt, Nepra issues licenses to applicants located within the jurisdiction of each distribution company’s service area. Before the license is granted, the respective companies should receive, check and process such applications.
According to Mr. Qadir, there are hundreds of thousands of tube connections in the service areas of all nine nightclubs, including Lesco, Faisalabad Electric Supply Company (Fesco), Multan Electric Power Company (Mepco), Gujaranwala Electric Power Company (Gepco). Islamabad Electric Supply Company (IESCO), Peshawar Electric Supply Company (Pesco), Tribal Area Electric Supply Company (Tesco), Quetta Electric Supply Company (Qesco), Sukkar Electric Power Company (Sepco) and Hyderabad Electric Supply Company (Hesco).
It should be noted that most of these connections are in a large rural area of Mepco. The number here is between 60,000 and 70,000. Similarly, Lesco has 25,000 to 30,000 connections and most exist in the areas of its Kasur and Okara districts. Qesco, Gepco, Pesco, Hesco, Sepco and other companies also have a variety of such connections.
In response to a question, Mr. Qadir said Lesco has so far processed around 6,000 net metering applications, most of which (around 100 MW) have received a generation license from Nepra.
Published in Dawn, March 12, 2022
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