Solar Owners Are Rapidly Breaking Pakistan’s Costly Power Plant Business Model
The quick shift of households and businesses toward solar power is emerging as a major challenge for Pakistan’s national grid; demand is down 8.66 percent year-on-year.
Official documents seen by ProPakistani show that several distribution companies (DISCOs) recorded declines in electricity sales between April and June, with the drop reaching around 10 percent in some cases.
The growing adoption of solar systems by domestic and commercial consumers has been identified as a key reason behind the decline in grid electricity demand.
The lower sales are also increasing the capacity payment burden on consumers, as fixed power generation costs are spread over a smaller volume of electricity consumed from the grid.
Islamabad Electric Supply Company (IESCO) recorded a 10.77 percent decline in electricity sales in April compared with the same month last year. Its sales were down 3.55 percent in May and 6.29 percent in June year-on-year.
The decline was particularly pronounced among domestic consumers. IESCO’s residential electricity sales fell 19.69 percent in April, 7.92 percent in May and 5.72 percent in June compared with the corresponding months of the previous year.
Commercial consumers also reduced their reliance on grid electricity, with sales declining 6.85% in April, 3.80% in May and 1.85 percent in June.
Overall, IESCO recorded a decline of up to 16 percent in electricity demand during the April-June quarter. Demand fell 16% year-on-year in April, 8 percent in May and 2 percent in June.
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