An Enigma Of Net Metering

Afia Malik and Ayesha Rehman
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Ayesha Rehman: Young Researcher Development Intern, RASTA-PIDE

No 2024:124, PIDE Knowledge Brief from Pakistan Institute of Development Economics

Abstract: Net metering (NM)—an effective tool to meet carbon emission target. No transmission requirement, no losses, no large investments required, and no exposure to dollar fluctuations. It can be a source of carbon credits through a comprehensive policy overhaul. NM is not reducing demand, but commercial load shedding, slow economic activity, and tariff escalation is. The financial impact of distribution losses is much higher—in FY23, distribution losses were 22286 GWh, exceeding NM exported units of 482 GWh. There is no evidence to support the claim that consumers without NM are subsidizing NM consumers. Do revise NM policy/ regulation but upgrade the grid infrastructure first. Enhance grid monitoring through automated metering infrastructure to check the misuse of this facility.

Pages: 18 pages
Date: 2024
New Economics Papers: this item is included in nep-ene and nep-env
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