Government May Struggle to Sell Electricity After 6 Years Due to Rise in Solar Power Generation by Public – Startup Pakistan

The government is dealing with a pressing issue as more individuals generate solar power independently from the national grid. Currently, these independent solar systems are producing approximately 250 megawatts (MW) of power each month, which amounts to a total annual output of 3,000 MW. This substantial shift from relying on the national grid is causing serious concerns.

The increased off-grid solar power production is impacting the grid’s revenue and intensifying the existing capacity payment crisis. This situation poses a significant financial threat and complicates the management of the national power grid.

In response to this growing trend, the Prime Minister has established a special committee focused on solarisation. The committee is led by Federal Minister for Petroleum Musadik Malik and includes key representatives from the Pakistan Private Infrastructure Board (PPIB), the Alternative Energy Development Board (AEDB), and the Central Power Purchasing Agency (CPPA).

The committee has been tasked with evaluating the potential financial consequences of this trend and has put forward recommendations for how the government can address these challenges.

The committee’s recommendations are crucial and will soon be reviewed by the Prime Minister. This review will determine the necessary actions to manage the impact of the increasing off-grid solar power production and ensure the stability and financial health of the national grid.

This development underscores the need for strategic planning and policy adjustments to balance the benefits of renewable energy with the financial sustainability of the national power infrastructure.