ISLAMABAD – The federal government has shared a plan with the IMF mission, which is in Pakistan for an economic review under the $7 billion loan deal, to purchase the surplus electricity generated from solar energy systems installed on rooftops at lower rates.
Currently, the government is purchasing this surplus electricity at a rate of 27 rupees per unit, which is proposed to be reduced to approximately 10 rupees per unit.
However, the IMF raised another question about how the government has planned to address the issue of individuals who have installed solar panels on their rooftops but prefer to remain off-grid rather than connect to the grid.
Reports further said that the solar net metering system has become a burden of billions on consumers taking electricity from the grid, and there has been a decision to end net metering and impose fixed charges on solar users, which the Power Division has denied.
The IMF has expressed serious concerns about this matter as reports suggested that solar energy installations are rapidly increasing in the country, and this could increase manifold in the coming months and years.
This trend is growing rapidly and could pose challenges for the overall performance of the electricity sector in the coming years.
On the other hand, the government has informed the IMF that there is also a need to rationalize electricity rates.
The country has a total of 104 power plants, of which 18 are government-owned, and 86 are independent power producers (IPPs).
So far, the government has shut down 5 ineffective power plants, and an agreement has been reached with 14 IPPs to reduce electricity rates.
Additionally, the rates for eight IPPs, which are using sugarcane waste have also been reduced, and the government is currently renegotiating with the remaining IPPs.
