Govt to Add 4,320MW Through Solar Energy in the National Grid by 2031

The government is planning to add 4,320 MW of net metering solar energy to the national grid by 2031. The 10-year Indicative Generation Capacity Expansion Plan 2022-31 has forecasted an additional 4,320 MW of net metering solar electricity in the system, i.e., 480 MW annually. The existing contribution from the net metering electricity to the system is 160MW. However, the government efforts of adding 4,320 MW of net metering solar energy to the system within the next decade are likely to hit a snag due to the current move of the NEPRA to cut the net metering tariff by 53pc. NEPRA has proposed an amendment in net metering regulations 2015, which aims to reduce the net metering tariff by Rs. 10.32/unit from the existing Rs. 19.32/unit to Rs. 9/unit. The decision will discourage the new investment in net metering and thus negatively affect the government’s effort of adding 480MW of electricity annually to the system. Keeping in view the growing demand for net-metering connections in the country, its impact has been considered in IGCEP for the first time, the plan said. The Net Metering targets are provided by the Alternative Energy Development Board (AEDB). It is pertinent to mention that in this plan these Net Metering targets are modeled at the supply side since the generation through Net Metering will also be contributing towards meeting the Renewable Energy targets.