B4 industrial consumers: PALSP urges Nepra to facilitate renewable energy integration into grid

ISLAMABAD: Pakistan Association of Large Steel Producers has asked NEPRA to facilitate renewable energy integration into the grid by B4 industrial consumers to incentivize industries to invest further in renewables.

In a letter addressed to NEPRA, PALSP which is the leading representative body of steel sector, urged the Authority to facilitate renewable energy integration into the grid by B4 industrial consumers through amending the existing rules and regulations. ‘The measure would not entail any additional interconnection costs and will help in augmenting the use of low-cost energy as well as increase the adoption of green/clean energy for environment protection.’

Steel is an energy-intensive industry therefore significant number of steel companies/plants fall under the B4 consumer category across various Distribution Companies in Pakistan. These industries are connected at the 132kV voltage level and have invested in Renewable Energy PV Solar Plants.

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However, due to prevailing economic conditions, the utilization of these solar plants remains considerably low. Consequently, valuable and cost-effective renewable energy is going to waste due to the limited demand.

We believe that the government and concerned authorities should take strategic policy measures to integrate this surplus renewable energy into the national grid. Doing this will not only help in optimizing the use of cheaper and cleaner energy but also contribute to achieving the objectives outlined in the ARE Policy 2019.

The policy’s primary goals include environmental protection through the increased adoption of green energy and achieving cost-effective on-grid power generation. Integrating surplus renewable energy aligns with clause 1.4.4 of the ARE Policy 2019, emphasizing the “Displacement of Expensive Energy.”

This integration requires no additional interconnection costs, and transmission & distribution losses are minimal due to the 132kV voltage level connectivity. Clause 5.6.6 of the National Electricity Policy 2021 underscores the importance of adopting Distribution Generation, while Section 14A of THE REGULATION OF GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC POWER ACT, 1997, as amended up to date, urges for special provisions to nurture a sustainable renewable energy market with a dedicated and progressively increasing share in the electricity sector.

In the light of above mentioned facts we urge the concerned authority/NEPRA to consider our proposal and take necessary measure by amending the regulations. This could involve either including such integration in Net Metering programs or establishing a straightforward framework for direct Power Purchase (Feed in Tariff). These measures would incentivize industries to invest further in renewables, thus boosting the country’s overall green energy capacity.

Not only would this contribute positively to the environment, but it also represents a pragmatic approach to achieving the ambitious target of 30% renewable energy generation in the grid by 2030.

The letter has also been addressed to the Prime minister, Minister for Finance & Revenue, Minister for Industries & Production as well as other leading ministries.

Copyright Business Recorder, 2023