In a significant step towards promoting renewable energy, the National Electric Power Regulatory Authority (NEPRA) has granted Distributed LESCO Generation Concurrence No. NMC12957/2024 to Mr. Quwat Ali Sheikh. This LESCO distributed generation concurrence facilitates the establishment of a 489.520 KW photovoltaic solar-based distributed generation facility at M.J.M Rice Mills, located on Sheikhupura Road, Muridke. This move aligns with NEPRA’s (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.
A Landmark Achievement for M.J.M Rice Mills
The new solar facility at M.J.M Rice Mills marks a pivotal moment in the company’s journey towards sustainable energy. With a substantial capacity of 489.520 KW, this photovoltaic system is set to significantly reduce the carbon footprint of the mill while ensuring a steady and eco-friendly power supply. This initiative not only underscores the company’s commitment to environmental stewardship but also positions it as a leader in the adoption of renewable energy in the region.
Benefits of Distributed Generation of LESCO
- Cost Savings: By generating its electricity, M.J.M Rice Mills can reduce its dependency on the grid, leading to substantial savings on energy costs.
- Environmental Impact: Solar energy is a clean, renewable resource. By switching to solar power, the mill will decrease its reliance on fossil fuels, thereby reducing greenhouse gas emissions.
- Energy Security: Distributed generation provides greater energy security and reliability, minimizing the risks associated with power outages and grid failures.
- Regulatory Compliance: The project complies with NEPRA’s 2015 regulations, showcasing the mill’s dedication to adhering to national standards for renewable energy.
NEPRA’s Role in Promoting Renewable Energy
NEPRA plays a role in regulating and facilitating the transition to renewable energy in Pakistan. By granting concurrences for distributed generation projects, NEPRA ensures that these initiatives are implemented by the country’s energy policies and regulations.
Future Correspondence
For any future correspondence regarding the electricity project, please refer to the Distributed Generation Concurrence No. NMC12957/2024. It will ensure that all communications are accurately tracked and addressed.
LESCO Distributed Generation in Pakistan
In 2015, Pakistan implemented regulations on net-metering to promote renewable energy. Distribution Companies (DISCOs) play a crucial role in this process by connecting consumers to the grid. To ensure compliance, reference guides were issued to all DISCOs. Below is a detailed review of the installed capacity for distributed generation in Pakistan.
Total Installed Capacity
Over the past four years, 3,020 licenses were issued to distributed generators across the 11 DISCOs. As of December 31, 2019, the cumulative installed capacity for distributed generation in Pakistan reached 47,652 kW. Although the regulations cover both solar PV and wind turbines, all installations to date have been solar PV.
The figure below illustrates the year-wise growth of distributed generation. The horizontal axis represents the years of installation, while the vertical axis measures the growth in distributed generation by the number of licenses and the size of installed capacity (kW). Despite consistent positive growth in distributed generation, there was a notable surge in capacity installations during 2019.
Year-wise Distributed Generation Installed Capacity (kW)
While analyzing the development of distributed generation in Pakistan, an interesting finding was the geographically uneven progress across the country. Table 1 illustrates the distribution of total connections and licenses issued for distributed generation across various DISCOs, while Figure 2 shows the DISCO-wise distribution of installed capacity.
Distribution of Installed Capacity
The overall distribution of installed capacity across the 11 DISCOs reveals that the growth in distributed generation is primarily dominated by LESCO, IESCO, and KEL, which account for around 80 percent of the total installed capacity. The remaining capacity is distributed among MEPCO, GEPCO, FESCO, SEPCO, and PESCO, respectively.
Notably, the growth in distributed generation under HESCO and QESCO is minimal, with these two DISCOs having issued only 3 and 1 licenses respectively, resulting in just 26 and 6 kilowatts of installed capacity. Furthermore, TESCO has yet to issue a single license.
Table 1: DISCO-wise Licenses Issued to Distributed Generators
| DISCOs | Total Connections | Net-Metering Licenses |
|---|---|---|
| LESCO | 4,598,784 | 1,005 |
| IESCO | 2,837,238 | 975 |
| KEL | 2,583,435 | 635 |
| GEPCO | 3,326,274 | 140 |
| MEPCO | 6,072,783 | 110 |
| FESCO | 3,953,132 | 102 |
| PESCO | 3,330,907 | 41 |
| SEPCO | 745,308 | 2 |
| HESCO | 1,080,714 | 3 |
| QESCO | 609,004 | 1 |
| TESCO | 442,401 | 0 |
Fig 2: DISCO-wise Distributed Generation Installed Capacity (kW)
The data highlights significant disparities in the adoption of distributed generation across different regions, with LESCO, IESCO, and KEL leading the way. These findings underscore the need for targeted policies and incentives to promote more balanced growth of distributed generation throughout the country.
Conclusion
The approval of the LESCO Distributed Generation Concurrence for M.J.M Rice Mills is a significant milestone in Pakistan’s journey towards renewable energy. This project not only exemplifies the benefits of solar power but also sets a benchmark for other industries to follow. With NEPRA’s support, M.J.M Rice Mills is leading the way in creating a greener, more sustainable future.