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Net Metering: An Alternate Source of Power for Electricity Consumers

Net-metering initiative for mitigating demand supply gap in the distribution of electric power in the
country, is an encouraging development endorsed by NEPRA through passage of requisite regulations.
Institute of Policy Studies held consultative roundtable session on, Net Metering: An Alternate Source
of Power for Electricity Consumers on January 19, 2016. This brief is based on the proceedings of the
subject roundtable.1
Net Metering is being practiced in many countries. It enables customers producing power from
renewables for their domestic use and supply surplus power to the national grid. Hence, in case of solar
energy production, the meter records the import and export of Power from and to Grid and consumers
would only be charged for the net- energy consumption.2

Introduction of Net Metering in Pakistan

The introduction of net metering in Pakistan is significant in the context of chronic energy crisis. Due
to prevalent power outages through load shedding, the consumers are forced to buy UPS and Generators
and 50 lack UPS are deployed now which have added load on generation because of their low efficiency
ranging from 40 to 60%. UPS have not only added load at Generation but have added reactive load at
Distribution system. The concept of net-metering was introduced in Pakistan under the Policy for
Development of Renewable Energy for Power Generation in 2006. In 2012, Pakistan Engineering
Council and Planning Commission both installed on-grid solar power stations with the capacity of 178
KW each.3
To promote net metering in Pakistan, AEDB collaborated with NEPRA to prepare draft regulations on
net-metering. The Regulations were launched in the workshop conducted by NEPRA in 2013, where
all the concerned stakeholders such as DISCOs, Provincial Inspectors, PEC, Secretary, Provincial
Energy Departments and others participated and submitted their comments on the draft regulations.
Thereafter, draft Regulations were uploaded in October, 2014 on NEPRAs website ant the letters were
sent to all Stakeholders for their comments. The draft regulations were revised in the light of
stakeholders comments.
Regulations were approved in September, 2016 with its final version available on NEPRAs Website.
These regulations provide both regulatory and technical features of the net-metering arrangement
including customer service matters such as Billing Requirements, and Dispute Resolution.
NEPRA conducted a workshop for establishment of Distribution Code Review Panel (DCRP) in Oct,
2014. The purpose of establishment of DCRP was to discuss the integration of power at distribution
voltage levels such as small hydel, net metering through renewables, and wheeling etc. so that
appropriate technical codes could be developed for smooth operation of net-metering.

The session was chaired by Mirza Hamid Hassan, Former Secretary Water and Power, and the key speakers
included: Mr. Mazhar Iqbal Ranjha, Director Standards Department, NEPRA; Wajid Ali Kazmi, Chief Engineer
Planning, IESCO; Mr. Faiz Muhammad Bhutta, Member Energy Committee, Pakistan Engineering Council (PEC).
2
http://www.seia.org/policy/distributed-solar/net-metering
3
http://www.jica.go.jp/pakistan/english/office/topics/press120529.html

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Implantation: Steps taken by IESCO
After the announcement of regulations by NEPRA, the responsibility of the implementation lies with
the distribution companies. Among DISCOs, IESCO has taken lead with by initiating following steps
after the issuance of Net-Metering regulations:

It constituted a committee for the formulation of departmental Standard Operating

Procedures (SOPs). SOPs were formulated and approved within a month;
It started educating field officers for the implementation of net metering;
It processed first application of connecting Parliament House Building 1000 kw load.
Application has been forwarded to NEPRA. The work has started over this project.

Other DISCOS have concerns over net metering and had not taken any step forward. To start with, they
can take guidance from IESCOs experience.

Issues and Challenges

There are several technical issues in the implementation of Net Metering including ambiguities in the
NEPRAs regulations, as well which need to be addressed. Following are some of the issues that are
needed to be addressed.

The processing time required to approve an application for net-metering is lengthy. It

will take approx 100 days to process an application of ____load may exceed further in
real time.
According to SRO-9.5, The grid connected inverters and generators shall comply with
Underwriter Laboratories UL 1741 standard (Inverters, Converters, Controllers and
Interconnection System Equipment for Use with Distributed Energy Resources) which
addresses the electrical interconnection design of various forms of generating
equipment, IEEE 1547 2003, IEC 61215, EN or other international standards. UL1741
is a US standard and needs to be followed by the net metering applicant. It was
discussed that it is a stringent standard and difficult to be practiced. Instead of referring
to a fixed standard, the reference to other international standards creates ambiguity
and was proposed to be substituted with fixed standards in line with other applicable
standards in Pakistan and Equivalent IEC standards should be mentioned which are
already applicable in Pakistan and the sentence Other International Standards should
be eliminated.
The agreement annexed to Net-metering regulations, only three phase consumers have
been declared to be eligible. Hence it does not addresses single phase consumers whose
requirement is 1 or 2 Kilo watt.
Interconnect study charges are not defined.
The issue of billing is yet not resolved. Net metering has been installed at PEC but
billing has not yet been started due to certain unknown reasons making it difficult for
ordinary consumers to take benefit of net-metering.
The staff of the DISCOs are not adequately trained to deal with the issue of net
metering.
DISCOS have not defined the process to deal with the consumers such as the forum for
entertaining applications.
In case of load shedding, it would require to ensure that the grid is off and the surplus
power stops supplying to the grid.

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The installation cost of net-metering infrastructure should not be high, otherwise it

would discourage consumers. It was also learnt that even the existing digital meters
being installed by utilities can be used for net-metering after requisite programming.
The equipment generating renewable energy is the critical most important component
of the whole chain enabling net-metering and AEDB was spotted as the organization to
ensure standardization mechanism at import and local assembling of solar panels in
Pakistan. AEDB informed that such ECC approved summary and standards
implementation is in process and consultation with concerned departments and Pakistan
Standard and Quality Certification Authority is in process.
The absence of certified installers was highlighted during the session which will ensure
implementation of net metering regulations at the time of installations.

Recommendations
Following Measures can be taken to promote and implement net metering in the country:

DISCOs should set up clear SOPs and provide one window operation. NEPRA, AEDB,
DISCOS and PEC should play active role for the education of electrical inspectors/
DISCOS official/ masses regarding net metering regulations
Total time taken from application to interconnection should not be more than 15 days
up to 20KW and 45 days from 20 to 100KW and 60 days from 100KW to 1 MW.
SOPs should clearly define the Interconnect study charges as per slabs and who will
conduct this study. There should be approved consultants for undertaking Interconnect
study.
IEC equivalent to UL standard 1741 for inverters should also be mentioned as IEC
standards are mostly practiced in Pakistan and number of standards should be fixed
instead of mentioning all other International standards.
The NEPRA prescribed Net-metering Agreement is for three years that would be
onerous for consumers. Hence it should be for 10 years at least.
List of approved manufacturers for Inverters, a key component of renewable
energy/solar energy plants should be included. AEDB can assist in this regard.
The concept of local service providers for installation, surveys in the country.
Electricians should be educated and trained in his respect.
Manufacturers of bi-directional meters should be encouraged. The subsidy given on
tariff, should be given on solar panels. It can help promote solar panels by replacing
UPS which is burdening the national grid. To give the incentive, there should be
understanding between NEPRA and DISCOs that the feeders connected with net
metering would be exempted from load shedding during the day time.
Specification of meters may be notified by NTDC.
NEPRA should lead the introduction and speedy implementation of net-metering
regime inter alia by creating a Net Metering Desk at its Consumer Affairs Division,
setting up targets for utilities to promote net-metering in their consumers. In this
regards a hand book can be developed to create greater awareness and assist the
consumers in adoption of net-metering.

Conclusion
Pre- requisite for the promotion of net metering across the country is the popularization of
Renewable energy at the consumer level. Its implementation can only be successful with the

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involvement of community that needs mass awareness program. Coordination among all the
stake holders is required to improve the regulations; to overcome the technical hurdles and to
facilitate the consumers by easing the process of net metering. Therefore, it was suggested
towards the end of the session that NEPRA, IESCO, PEC, AEDB, and IPS can make a joint
forum to push the issue of net metering through an integrated efforts.