National grid under pressure after consumers switch to solar: experts

• Experts encourage policymakers to create a comprehensive plan.
• Net metering puts a burden on those who cannot afford solar panels.
• The transition to renewable energy sources requires solving structural issues.

ISLAMABAD: Consumers turning to self-generated energy, especially solar power, have put Pakistan’s national energy infrastructure under increasing pressure, jeopardizing the grid’s long-term sustainability and stability, experts said.

At the annual plenary session of the Sustainable Development Policy Institute (SDPI) on Thursday, The News reported, experts encouraged policymakers to create a comprehensive plan that strikes a balance between renewable energy expansion and grid reliability.

Attock Refinery and Attock Gen Limited CEO Adil Khattak said Pakistan’s move towards renewable energy is hampered by systemic inefficiencies even though the country produces more energy than it uses.

He pointed out that imbalances have inadvertently been created by the increase in self-generated solar electricity, which is made possible by net metering, which allows solar owners to sell excess power back to the grid.

“Net metering puts a burden on those who can’t afford solar panels, while those who can are pushed off the grid, which destabilizes the overall energy system,” he said.

Despite these obstacles, Khattak said, the transition to renewable energy is necessary, but requires solving structural problems in the energy system.

United Energy Pakistan Company Secretary Tanveer Afzal Mirza highlighted the growing interest of the private sector in wind energy, which has attracted investments totaling around $3 billion.

He noted, however, that regulatory hurdles, inconsistent policies, political and economic uncertainty and other factors are hindering future progress.

Hussain Talib, Head of External Affairs, Unilever Pakistan, highlighted the need for closer collaboration between government and industry to achieve net zero emissions, citing the Power Wheeling Coalition, a group working on renewable energy policy reforms.

He advocated a liberalized energy market to support green initiatives, but emphasized that the responsibility for implementation rests with the government.

Tauseef H Farooqi, former chairman of the National Electricity Regulatory Authority (Nepra), criticized Pakistan’s current energy system, calling it “neither affordable, nor reliable and certainly not sustainable”.

He urged greater private sector involvement, but warned that without solid investment opportunities, progress would remain limited. An important issue raised was the need for affordable battery storage solutions to support renewable energy sources.

Farooqi also briefed the participants about Pakistan’s Coal Trading and Bilateral Contract Market (CTBCM) approved by Nepra in 2023, but noted that the government is yet to set affordable tariffs to come into force.

Daniyal Siddiqui from DSC Energy Ltd. He stressed the importance of fast-tracking the CTBCM to attract investment and meet green finance targets, while Shah Jahan Mirza, CEO of the Private Power and Infrastructure Board (PPIB), warned that poor planning is based on overstated GDP forecasts. growth led to supply-demand imbalances. “The whole community needs to come together to reach net zero emissions,” Mirza said.

Without decisive action by policymakers, Pakistan’s energy sector risks facing continued volatility and inefficiency, he added.