ISLAMABAD: The Pakistan government said that the rise in solar power through net metering has not harmed the national grid as much as feared.
“Solar generation is increasing, but it does not significantly affect the grid,” said Rehan Akhtar, CEO of the Central Power Purchasing Agency (CPPA), while speaking before the National Electric Power Regulatory Authority (Nepra).
The CPPA, under the Power Division, is responsible for buying electricity from different sources and supplying it to all distribution companies while managing commercial operations.
Akhtar explained that higher energy costs had encouraged more solar use. “People are using more solar, but their electricity draw from the national grid remains almost the same,” he said, adding that future trends could change.
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Net metering contributions rose sharply, increasing 173% to 726 million units in 2024 from 266 million units in 2023, while distribution companies showed only 1% growth. K-Electric, however, drew 9.4% more from the grid as it started using the full 2,050MW capacity.
The CPPA also requested Nepra to approve a new power purchase price (PPP) starting January 2026. They presented five scenarios, showing an average PPP between Rs25.95 per unit (best case) and Rs26.53 per unit (worst-case scenario, assuming currency devaluation to Rs300-310 per dollar). The current PPP for FY26 is Rs25.98 per unit.
Fuel costs are expected to stay mostly stable, with a possible 5% rise globally. Local currency fluctuations could add Rs10 in the first six months and another Rs10 in the second half of next year. Interest rates are projected at 11% for the first half and 10.5% for the second.
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Industrial consumers criticized high energy costs, saying these make their products uncompetitive. They claimed that the industry is still cross-subsidizing other consumers by Rs131 billion and that earlier government tariff reductions have already disappeared.
They also questioned CPPA’s projections of rising demand, saying actual electricity consumption is falling due to high prices, industrial closures, and the shift to solar power.
