Latest news with #Rs103
Express Tribune
29-01-2025
- Automotive
- Express Tribune
Renewable energy targets demand $100b investment
ISLAMABAD: Pakistan needed over $100 billion investment to shift its policy towards renewables to achieving a carbon neutral energy sector, climate ministry officials informed the Senate Standing Committee on Wednesday. They said that the country required $50 billion to achieve 60% renewable energy target by 2030, more investment to reduce emissions by 50%, besides $18 billion to fully operationalise the National Energy Efficiency and Conservation Authority (NEECA) Plan-2023-30. The committee met here with its chairperson Sherry Rehman in the chair. The meeting was informed that support from the Global Environmental Facility (GEF) and the Green Climate Fund (GCF) would play a crucial role in implementing the plans and achieving climate targets. The committee received a briefing from industries and production ministry officials on the electric vehicle (EV) policy. The officials said that he prime minister had formed a steering committee on the EV policy. During the meeting, the climate change secretary said that introducing EVs in public transport was crucial to reduce carbon emissions. He stated that transport had the greatest impact on air quality, adding that a proposal to subsidise two- and three-wheelers was currently under consideration. However, the chair noted that pollution from other sources was spreading more than vehicular emissions. She also criticised the industries ministry officials for lack of preparedness. "It is regrettable that the officials do not even know the exact number of local EV manufacturers," she said. Rehman asked the officials as to how they planned to operate EVs without a clear strategy. She emphasised that the government could not halt solarisation by modifying net metering regulations. She urged the climate change ministry to oppose any policies that discouraged solar energy. Energy Minister Awais Leghari told the committee that a solar revolution was already under way in the country. He reminded the committee that he had introduced net metering regulations in 2017 and assured that there was no plan to discourage solarisation. Leghari stated that solar investments were currently recovered within 18 months, but under the new regulations, this period would extend to four years. He noted that solar system owners were selling electricity at Rs22 per unit. However, he highlighted that the government was buying electricity from solar producers at high costs and selling it to the consumers at lower rates. Senator Zarqa Taimur urged the government to reduce transmission losses and emphasised that agreements under net metering should remain unchanged. Leghari warned that if the new regulations were not enforced, other consumers would bear an additional burden of Rs103 billion. Leghari revealed that the government had exited the business of direct purchase of electricity from the producers. He also disclosed that the plans were in hand to divide the National Transmission and Dispatch Company (NTDC) into three entities. The energy minister confirmed that talks with the International Monetary Fund (IMF) were under way for a three-year energy package, and assured that the government had plans to allocate electricity to industries at affordable rates. Leghari acknowledged that previous power plants were installed under various policies but under a new system, future power plants would be installed through a competitive bidding process. He emphasised the need for green finance to support the transition. According to Leghari, 2,500MW of thermal power plants had already been retired, and the government was actively working to accelerate the shift towards green energy. He added that the government was working to retire 200MW furnace-based power plants which required green financing. Leghari underscored the importance of attracting investment to successfully implement the EV policy. He argued that more charging stations would encourage the adoption of the EVs. "With more charging stations, people will be more inclined to switch to electric vehicles," he stated. The climate change secretary told the committee that the State Bank of Pakistan (SBP) was actively working on financing green energy projects. However, Rehman criticised a slow progress. "Even after five years, the authorities are still saying that the State Bank is working on it," she said. Senator Sherry Rehman called for availability of loans to the consumers for transitioning to EVs. The climate change ministry officials confirmed that the federal government had introduced a special tariff for the EVs charging stations.
Express Tribune
29-01-2025
- Business
- Express Tribune
Govt employees receive free electricity worth Rs6,000 monthly: Energy minister
Listen to article Power sector employees receive Rs6,000 worth of free electricity each month, Energy Minister Awais Leghari revealed on Wednesday, as the government explores legal avenues to end the privilege. Speaking to journalists in Islamabad, Leghari stated that the government cannot currently halt free electricity for power division and generation company employees due to ongoing legal cases. "We have approached the Attorney General's Office to expedite the resolution of these cases so that we can put an end to free electricity," he said. Leghari proposed increasing salaries as a replacement for free power benefits and noted that the government is working on strategies to provide surplus electricity at lower rates. Discussing solar net metering, the minister warned that it has imposed an additional Rs103 billion burden on regular consumers. "As solarisation increases, the financial strain on ordinary consumers grows, as we are forced to buy expensive electricity through net metering," he explained. The government, he added, aims to ensure that net metering investors recover their costs within four years while managing the impact on general consumers. Govt to auction surplus electricity to industries On Tuesday, Leghari announced the government's plan to auction surplus electricity to industries. This initiative, aimed at stimulating industrial growth and creating employment opportunities, was detailed in a press statement by the Ministry of Energy on Tuesday. According to the statement, Leghari emphasised that surplus electricity would be made available competitively to maximise benefits for the economy and industrial sector. The minister also highlighted the National Electric Vehicle (EV) Policy, which seeks to promote the adoption of electric vehicles across Pakistan. He stated that electricity tariffs for EV charging stations had been significantly reduced to make EVs more affordable and accessible. This step, he said, aligns with the government's vision of promoting sustainable energy solutions and reducing environmental impact.
Arab News
28-01-2025
- Business
- Arab News
Pakistan's energy minister says net metering billing system for solar power unsustainable
ISLAMABAD: Energy Minister Sardar Awais Leghari on Tuesday called for revising Pakistan's existing solar net metering system, saying that it was becoming unfeasible for the government to continue buying power at the same cost from distributors and pay subsidies to solar power consumers. Solar net metering is a policy that allows homeowners and businesses to generate their electricity using solar panels and export any excess to the national grid. In Pakistan, it is a billing system through which consumers receive credits or monetary compensation for the surplus electricity they produce and send to the grid. The government approved the net-metering policy in 2017 to encourage solar energy use and reduce power shortages. Under this policy, the government says it pays Rs21 per unit for the net-metered electricity, resulting in a subsidy of Rs1.90 per unit. Pakistan's energy ministry said in April 2024 that the subsidy burden is being shared by the government, domestic and industrial electricity consumers for other affluent consumers who are capable of generating power from solar panels. 'Solar net metering has to change,' Leghari said while addressing a conference in Islamabad. 'It is impossible for us to sustain the same cost of buying power from distributors the way we are.' The minister said the government was unaware of the 'serious implications' that are caused by on-grid non-net metered power on the country's power grid. On-grid non-net metered power refers to a solar power system that is connected to the grid but does not have a net metering agreement with the utility company. 'I am not ready as the minister of power to keep any surplus power to myself just because the people and industry are not ready to pay the entire cost,' he said. 'Whatever they can afford to pay, whatever the marginal cost is, I'll be more than happy to share that advantage for economic growth.' The minister also announced the government's plan to auction surplus electricity in the country, saying that it will be provided to industries. This initiative aims to stimulate industrial growth and create new employment opportunities across Pakistan. Meanwhile, the energy ministry's spokesperson stated that a government report from last year said that a burden of Rs103 billion ($366 million) was transferred to electricity consumers in 2024 due to the existing net metering policy. 'The burden is expected to rise to Rs503 billion ($1 billion) in the next 10 years,' the spokesperson said, quoting the report. He added that only 0.6 percent of total electricity consumers in Pakistan were net metering users out of which 80 percent belonged to affluent areas of major cities while the remaining 99.4 percent of electricity consumers bear the burden of the net metering costs. Separately, Leghari met US Charge D Affairs Natalie Baker to discuss the reforms undertaken by the power sector to slash electricity costs. He said the government was following a non-interference policy based on transparency and international standards in a bid to attract investors regarding privitization of DISCOs, the energy ministry said. Appreciating the efforts undertaken by the energy ministry, Baker assured Leghari of working together to explore new vistas of cooperation in the energy sector, it added. Pakistan has ideal climatic conditions for solar power generation, with most parts of the country receiving over nine hours of sunlight daily. According to the World Bank, utilizing just 0.071 percent of the country's land area for solar photovoltaic (solar PV) power generation could meet Pakistan's electricity demand. The South Asian nation, home to 241 million people, aims to transition to 60 percent renewable energy by 2030 and reduce projected emissions by 50 percent. However, despite a recent surge in solar power adoption, it remains far behind in achieving this goal.
Express Tribune
27-01-2025
- Business
- Express Tribune
Solar net metering adds Rs103b burden on grid power consumers
Listen to article Net metering has placed a financial burden of Rs103 billion on grid power consumers in Pakistan, prompting the government to consider a shift to a gross metering system, Express News reported on Monday. Solar net metering, which allows users to offset electricity costs by feeding surplus energy into the grid, has seen significant growth. Installed capacity rose from 321 MW in 2021 to 3,277 MW in 2024 and is projected to reach 12,377 MW by 2034. However, the system currently benefits only 0.6% of the nation's 37 million electricity users. The Power Division highlighted that in 2024 alone, net metering users contributed to a Rs103 billion cost that was borne by conventional grid consumers. Officials warn that without policy reforms, this financial strain could increase to Rs503 billion over the next decade. Major cities including Lahore, Karachi, Islamabad, Faisalabad, and Peshawar now account for 80% of the country's net metering users, with the total number of such connections exceeding 226,440. To alleviate the impact on grid users, the government is exploring the introduction of gross metering. Under this system, the rate for electricity purchased from solar net metering users would drop from Rs21 per unit to Rs8–9 per unit. Sources indicated that a policy shift is imperative to ensure the sustainability of the energy grid and prevent additional financial burdens on traditional power consumers. The proposed reforms aim to balance the rapid adoption of rooftop solar installations with grid stability and affordability, ensuring long-term viability for Pakistan's power sector.
