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Power Division sets 8,500 MW Net Metering target in new IGCEP

by AMG
July 12, 2025
in Energy
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ISLAMABAD : Power Division has set a target of induction of 8500 MW electricity to the system through net metering during the upcoming IGCEP( Indicative Generation Capacity Expansion Plan) which is to be approved by the National Electric Power Regulatory Authority (NEPRA).

   This figure will be part of the new summary to be presented to the Cabinet with new set of Regulations and revised buyback rates. Currently, 6500 MW has already been  added to the system through net metering.

   ”  There will be revision of buyback rate and billing and settlement mechanism under the existing net-metering regime  aimed at minimizing distortions caused for grid consumers,”  sources quoted Power Division as briefing the development partners.  

 On July 10, 2025, Power Minister, Sardar Awais Khan Leghari told media that the new summary will have better terms for the reconsideration of the Cabinet as consultative process has been completed as per the directions of Cabinet.

 The Minister also confirmed that 6,500 MW net metering  systems have been installed till date, which are connected to the grid, and we have created space of 8,000 MW  more  under the IGCEP within the next six years,”  he said adding that apart from this, there is absolutely no prohibition on anyone who wants to install a off-grid in their home in addition to their grid connection.

The Minister was of the view that the government  do not have any intention to put any bar on off-grid solutions for the consumers . However, if the consumers of net metering has already recovered their investments in one and half, the government want to not be burden on  grid consumers. Power Division intends to take this period from one and half year to two to three years. There are indications that new buy back rate will be between the range of Rs 12 or Rs 13 per unit.

 He said, the people invested in net metering on the basis of policy gave the government but the return consumers are getting is unjustified. However, the government has no intention to penalize those who are earning unfair return on their investments.

 However, if the government does not correct it, the remaining consumers of grid,  even those who also have net metering, will pay additional Rs 3 trillion of electricity bills  in the next six years.

 The Minister questioned that if contracts of Independent Power Producers (IPPs) have not been reviewed. If the government has not undone savings of Rs 3.5 trillion?  if the government has not trashed  10,000 MW projects from 17,000 MW projects?.

Ends     

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