Solar Growth Stable, Grid Impact Minimal
ISLAMABAD: The government has clarified that the rapid increase in rooftop solar and net-metering installations is not negatively affecting the national grid. Central Power Purchasing Agency (CPPA) CEO Rehan Akhtar told the National Electric Power Regulatory Authority (Nepra) on Tuesday that solar generation has grown, but withdrawal from the grid has remained largely stable.
“Solar generation is increasing, but this does not have a significant impact on the grid,” Akhtar said, explaining that consumers are now using more solar power, yet their offtake from the grid has not declined. He added that future trends could vary, but current data shows no disruption to grid stability.
The CPPA, operating under the Power Division, is responsible for procuring electricity from various sources, managing distribution companies (Discos), and overseeing commercial operations. Akhtar’s comments were part of a public hearing regarding CPPA’s request for rebasing the power purchase price (PPP) effective January 2026, in line with government directives.
Power Purchase Price and Consumption Trends
During the hearing, the CPPA presented five tariff revision scenarios for January 2026. The projected PPP ranged from Rs25.95 per unit in the best-case scenario to Rs26.53 per unit in the worst-case scenario, factoring in potential currency devaluation from Rs280-290 to Rs300-310 per dollar. Currently, the PPP for FY26 is Rs25.98 per unit, indicating general stability.
Net metering contributions rose sharply by 173% in 2024, reaching 726 million units compared to 266 million units in 2023. Meanwhile, overall growth from distribution companies was just 1%. K-Electric, however, increased its grid offtake by 9.4%, drawing the full 2,050MW capacity.
CPPA also highlighted that fuel costs are expected to remain largely stable, with a maximum potential increase of 5% in global prices. Foreign exchange risks and interest rate projections were discussed, with minor adjustments expected over the next year.
Industry Concerns Over Rising Energy Costs
Industrial consumers raised concerns that high electricity prices are making their products less competitive. They argued that industries are still cross-subsidising other consumers to the tune of Rs131 billion. They also criticised the CPPA’s assumption of increasing demand, stating that consumption is falling due to rising energy costs, industrial closures, and a shift to solar power.
The government’s stance provides reassurance that rooftop solar is currently not destabilising the grid, even as energy prices and industrial challenges continue to shape the national electricity landscape.
