Pakistan

Pakistan Government Launches New Solar Policy to Tackle Energy Sector Challenges

 

Islamabad:In a significant policy shift aimed at resolving Pakistan’s ongoing energy crisis, the government has introduced a new solar energy framework, moving away from the traditional net metering system to a gross metering model. This change is designed to improve fairness, transparency, and financial sustainability in the energy sector.

Under the previous net metering arrangement, solar power users were allowed to feed excess electricity back into the national grid in exchange for payments. Although this system boosted solar energy adoption, it inadvertently increased the financial burden on general electricity consumers. Reports reveal that by the end of 2024, the cost to the government had ballooned to approximately PKR 159 billion, with projections suggesting a rise to PKR 4.24 trillion by 2034 if left unchecked.
What Does the Gross Metering Policy Entail?

The new gross metering policy mandates separate measurement of solar power generated and electricity consumed by users. This is expected to enhance transparency and reduce undue financial strain on the power distribution system.
Key Aspects of the Policy Include:

Existing solar users under net metering will continue to receive payments at a rate of PKR 27 per unit.

 

The policy is anticipated to save the government around PKR 103 billion in subsidies.

An estimated 8,500 MW of additional electricity capacity will be added to the national grid.

Reduced dependency on imported fuel will help conserve valuable foreign exchange reserves.

Addressing Inequities in Energy Distribution

Government officials pointed out that the previous system favored wealthier urban residents, who benefited disproportionately by avoiding fixed charges, placing a heavier financial load on other consumers. The new policy seeks to rectify these inequalities and ensure a more balanced cost-sharing mechanism.

Officials expressed optimism that this reform will strengthen the energy sector’s financial health while supporting Pakistan’s long-term sustainable energy goals.

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