Consumer (Co-)Ownership in Renewables in Pakistan

In September 2015, the National Electric Power Regulatory Authority (NEPRA) introduced Net Metering Regulations allowing domestic, commercial, or industrial electricity consumers to install up to 1 MW capacity solar and wind power systems for personal use as well as feed them into the national grid. The government furthermore abolished the import tax duty of 32.5 per cent on solar energy equipment announced in the 2014–15 budget to incentivize consumers to install rooftop solar panels and thus acquire ownership of RE installations. Consumer (co-)ownership is not directly conceived as a policy goal except for the indirect mention in off-grid power projects to be commissioned through public sector financing and/or through community/NGO/donor participation. Participation in RE projects is possible via any available type of corporation including cooperatives, partnership, or individual business or institutional activity, similar to those in other countries. Investments in grid-connected solar collectors and PV installations on private buildings, often financed through the owners’ equity are gaining popularity. However, on-grid citizen energy or community projects open to the public are not popular yet. However, off-grid community power projects, mostly hydro, having micro/mini grids have been present in the northern areas of Pakistan for more than two decades. Most of these projects are conceived by general purpose or specialized Village Organizations (VOs) registered with any NGOs such as the Agha Khan Rural Support Program (AKRSP) and Sarhad Rural Support Program (SRSP). Although VOs and NGOs jointly finance these projects usually at 20 and 80 per cent respectively, ownership rests with communities, with the NGO being a mere facilitator to channel government and donor grants.