In January 2017, the Renewable & Alternative Energy Association of Pakistan (“REAP”) presented a report to the National Electric Power Regulatory Authority (“NEPRA”) which identifies various matters which REAP, in consultation with its members, believes may be hindering the uptake of net metering in Pakistan since the scheme was introduced in late 2015 (see our earlier briefing on this here).

The key matters identified by REAP can be summarised as follows:  

• Connection process with the distribution and supply companies (“DISCOs”)  

• Deficiencies or undue limitations in the regulations - for instance, the exclusion of agricultural consumers; single-phase users; installations over 1MW; and renewable energy sources other than solar and wind

• Term of initial Connection Agreement  

• Procedural difficulties – for instance, the time taken to obtain a generation licence.

On 16 February 2017, NEPRA issued a notice seeking comments from stakeholders on the following proposed amendments to the Net Metering Regulations, which are borne out of REAP’s recommendations:

• Allowing 132kV connections (currently 11kV)  

• Increasing the maximum capacity (currently 1MW) to a level which will accommodate larger consumers

• Shortening timeframes for obtaining generation licences

• Adding more renewable energy technologies

• Including three-phase consumers (currently single-phase consumers only)

• Increasing initial term of Connection Agreement to 7 years Stakeholders have until Sunday 26th February 2017 (10 days) to respond to the proposals.