According to sources acquainted with the matter, the Prime Minister led a recent high-level conference attended by top officials that focused on promoting consumer acceptance of solar energy.
This shift is driven by factors such as persistent load shedding and high electricity costs, leading to a growing number of consumers, including affluent households and industrial and commercial sectors, opting for solar solutions.
The recent trend raised concerns about its impact on the revenue streams of Power Distribution Companies (Discos), leading to discussions with international bodies like the World Bank, Asian Development Bank (ADB), and International Monetary Fund (IMF) regarding the need for full cost recovery in the electricity sector.
The Asian Development Bank has expressed concerns raised by the Power Division about the financial impact of net metering on Discos and stated that it intends to focus its programmes largely on off-grid areas, while continuing to interact with them.
The Power Division suggested new repurchase pricing for surplus solar power, which are much lower than existing rates. The group also discussed the significant import of solar panels, mainly from China, due to their cost-effectiveness.
The Sindh Energy Department has requested ADB’s assistance with numerous solar energy programmes in rural and flood-affected areas. The conference ended with decisions to rationalise the net metering framework, including moving from net metering to a gross billing system with distinct rates for electricity import and export, modifying buyback prices, updating rules, and establishing a dynamic payback formula.
