Karachi power utility sees net contribution of 285,207 MWh from distributed generators

Small-scale renewable energy producers have contributed a net of 285,207 megawatt hours (MWh) to K-Electric — the utility that powers Karachi — through net metering, according to a report by the National Electric Power Regulatory Authority (NEPRA).

As of June 30, these distributed generators exported 480,274 MWh to KE’s system and imported 195,066 MWh from their roof-top systems.

NEPRA’s State of Industry Report 2024 reveals that 15,318 consumers have adopted distributed generation and net metering.

This group includes 13,882 domestic, 602 commercial, 583 industrial, three agricultural, and 248 general services consumers.

Domestic consumers generated 148,783 MWh but remained net importers of 913 MWh. The highest contribution came from industrial consumers with large-scale renewable generation systems, exporting a net of 246,996 MWh.

Commercial KE consumers also contributed a net of 20,440 MWh to the KE system.

Analysts say Pakistan’s distributed generation and net metering regulations offer attractive incentives, such as high buyback rates, fixed long-term generation licenses, and generous allowances for installed capacity.

With the global decline in solar photovoltaic (PV) prices, these provisions have led to a surge in net-metered rooftop solar PV capacity across the country.

Rapid solarization provides multiple benefits, including cost-competitive clean energy supply to the grid and a reduction in the national grid’s daytime peak.

However, power transmission and distribution utilities are concerned that higher penetration of distributed solar could risk the distribution infrastructure and increase capacity payments for non-net-metered consumers.

Consequently, the government is considering scaling back current incentives, including reducing buyback rates and shifting to a net billing mechanism.

An analyst noted that the actual penetration of solar-based generation among domestic consumers is likely higher, as those with smaller setups (less than 5 kV) often do not opt for net metering.