IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v167y2022ics0301421522002798.html
   My bibliography  Save this article

The role of residential distributed energy resources in Pakistan's energy transition

Author

Listed:
  • Mehmood, Fahad
  • Umar, Muhammad
  • Dominguez, Cristina
  • Kazmi, Hussain

Abstract

In light of climate change concerns and falling costs, many low-income countries, such as Pakistan, have adopted a number of policies to incentivise distributed energy resources and generation. These policies have meant that the installed base of grid-connected distributed solar generation in Pakistan has grown rapidly, from only 1 MW in 2015–2016 to 232 MW in 2020–2021. However, it still constitutes a paltry 0.5% of the overall electricity mix. In this paper, using high-resolution demand and generation profiles from Lahore (the second most populous city in Pakistan and the one with the most distributed generation), we show that distributed generation offers low payback periods for urban households, even without net metering. This calculus is aided by likely future tariff hikes. Additionally, distributed generation helps support the grid, even without storage or demand response, due to a close alignment between supply and demand. Based on this analysis, we recommend the regulator to provide longer term visibility on the continuation of incentives such as net metering, and how this will eventually be shifted towards solar mandates. Likewise, it is prudent for distribution companies to provide targeted incentives for uptake of distributed generation to alleviate issues such as non-technical losses and transformer overloading.

Suggested Citation

  • Mehmood, Fahad & Umar, Muhammad & Dominguez, Cristina & Kazmi, Hussain, 2022. "The role of residential distributed energy resources in Pakistan's energy transition," Energy Policy, Elsevier, vol. 167(C).
    • Handle: RePEc:eee:enepol:v:167:y:2022:i:c:s0301421522002798
    DOI: 10.1016/j.enpol.2022.113054
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522002798
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.113054?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kazmi, Hussain & Munné-Collado, Íngrid & Mehmood, Fahad & Syed, Tahir Abbas & Driesen, Johan, 2021. "Towards data-driven energy communities: A review of open-source datasets, models and tools," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    2. Silva Herran, Diego & Dai, Hancheng & Fujimori, Shinichiro & Masui, Toshihiko, 2016. "Global assessment of onshore wind power resources considering the distance to urban areas," Energy Policy, Elsevier, vol. 91(C), pages 75-86.
    3. Protopapadaki, Christina & Saelens, Dirk, 2017. "Heat pump and PV impact on residential low-voltage distribution grids as a function of building and district properties," Applied Energy, Elsevier, vol. 192(C), pages 268-281.
    4. Ahmad, Ali & Saqib, Muhammad Asghar & Rahman Kashif, Syed Abdul & Javed, Muhammad Yaqoob & Hameed, Abdul & Khan, Muhammad Usman, 2016. "Impact of wide-spread use of uninterruptible power supplies on Pakistan's power system," Energy Policy, Elsevier, vol. 98(C), pages 629-636.
    5. Urmee, Tania & Harries, David & Schlapfer, August, 2009. "Issues related to rural electrification using renewable energy in developing countries of Asia and Pacific," Renewable Energy, Elsevier, vol. 34(2), pages 354-357.
    6. Perwez, Usama & Sohail, Ahmed & Hassan, Syed Fahad & Zia, Usman, 2015. "The long-term forecast of Pakistan's electricity supply and demand: An application of long range energy alternatives planning," Energy, Elsevier, vol. 93(P2), pages 2423-2435.
    7. Malik, Sadia & Qasim, Maha & Saeed, Hasan & Chang, Youngho & Taghizadeh-Hesary, Farhad, 2020. "Energy security in Pakistan: Perspectives and policy implications from a quantitative analysis," Energy Policy, Elsevier, vol. 144(C).
    8. Kessides, Ioannis N., 2013. "Chaos in power: Pakistan's electricity crisis," Energy Policy, Elsevier, vol. 55(C), pages 271-285.
    9. Kazmi, Hussain & Mehmood, Fahad & Tao, Zhenmin & Riaz, Zainab & Driesen, Johan, 2019. "Electricity load-shedding in Pakistan: Unintended consequences, opportunities and policy recommendations," Energy Policy, Elsevier, vol. 128(C), pages 411-417.
    10. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    11. Koumparou, Ioannis & Christoforidis, Georgios C. & Efthymiou, Venizelos & Papagiannis, Grigoris K. & Georghiou, George E., 2017. "Configuring residential PV net-metering policies – A focus on the Mediterranean region," Renewable Energy, Elsevier, vol. 113(C), pages 795-812.
    12. Valasai, Gordhan Das & Uqaili, Muhammad Aslam & Memon, HafeezUr Rahman & Samoo, Saleem Raza & Mirjat, Nayyar Hussain & Harijan, Khanji, 2017. "Overcoming electricity crisis in Pakistan: A review of sustainable electricity options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 734-745.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kazmi, Hussain & Mehmood, Fahad & Shah, Maryam, 2024. "Quantifying residential energy flexibility potential for demand response programs using observational data from grid outages: Evidence from Pakistan," Energy Policy, Elsevier, vol. 188(C).
    2. Marcelino, C.G. & Leite, G.M.C. & Wanner, E.F. & Jiménez-Fernández, S. & Salcedo-Sanz, S., 2023. "Evaluating the use of a Net-Metering mechanism in microgrids to reduce power generation costs with a swarm-intelligent algorithm," Energy, Elsevier, vol. 266(C).
    3. Yunis Ali Ahmed & Ammar Rashid & Muhammad Mahboob Khurshid, 2022. "Investigating the Determinants of the Adoption of Solar Photovoltaic Systems—Citizen’s Perspectives of Two Developing Countries," Sustainability, MDPI, vol. 14(18), pages 1-25, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kazmi, Hussain & Mehmood, Fahad & Shah, Maryam, 2024. "Quantifying residential energy flexibility potential for demand response programs using observational data from grid outages: Evidence from Pakistan," Energy Policy, Elsevier, vol. 188(C).
    2. Syed Aziz Ur Rehman & Yanpeng Cai & Rizwan Fazal & Gordhan Das Walasai & Nayyar Hussain Mirjat, 2017. "An Integrated Modeling Approach for Forecasting Long-Term Energy Demand in Pakistan," Energies, MDPI, vol. 10(11), pages 1-23, November.
    3. Ahmad, Hafsa & Jamil, Faisal, 2024. "Investigating power outages in Pakistan," Energy Policy, Elsevier, vol. 189(C).
    4. Jamil, Faisal & Islam, Tanweer Ul, 2023. "Outage-induced power backup choice in Pakistan," Utilities Policy, Elsevier, vol. 82(C).
    5. Ur Rehman, Syed Aziz & Cai, Yanpeng & Mirjat, Nayyar Hussain & Walasai, Gordhan Das & Nafees, Mohammad, 2019. "Energy-environment-economy nexus in Pakistan: Lessons from a PAK-TIMES model," Energy Policy, Elsevier, vol. 126(C), pages 200-211.
    6. Muhammad Mahad Malik & Syed Ali Abbas Kazmi & Abdullah Altamimi & Zafar A. Khan & Bader Alharbi & Hamoud Alafnan & Halemah Alshehry, 2023. "Climate Change Impacts Quantification on the Domestic Side of Electrical Grid and Respective Mitigation Strategy across Medium Horizon 2030," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    7. Fahad Bin Abdullah & Rizwan Iqbal & Falak Shad Memon & Sadique Ahmad & Mohammed A. El-Affendi, 2023. "Advancing Sustainability in the Power Distribution Industry: An Integrated Framework Analysis," Sustainability, MDPI, vol. 15(10), pages 1-28, May.
    8. Jan, Muhammad Zain & Ullah, Kafait & Abbas, Faisal & Khalid, Hassan Abdullah & Bajwa, Tariq M., 2023. "Barriers to the adoption of social welfare measures in the electricity tariff structure of developing countries: A case of Pakistan," Energy Policy, Elsevier, vol. 179(C).
    9. Duan, Wenqi & Khurshid, Adnan & Nazir, Naila & Khan, Khalid & Calin, Adrian Cantemir, 2022. "From gray to green: Energy crises and the role of CPEC," Renewable Energy, Elsevier, vol. 190(C), pages 188-207.
    10. Mirjat, Nayyar Hussain & Uqaili, Mohammad Aslam & Harijan, Khanji & Valasai, Gordhan Das & Shaikh, Faheemullah & Waris, M., 2017. "A review of energy and power planning and policies of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 110-127.
    11. Abdullah, Fahad Bin & Iqbal, Rizwan & Hyder, Syed Irfan & Jawaid, Mohammad, 2020. "Energy security indicators for Pakistan: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    12. Ali, Fahad & Ahmar, Muhammad & Jiang, Yuexiang & AlAhmad, Mohammad, 2021. "A techno-economic assessment of hybrid energy systems in rural Pakistan," Energy, Elsevier, vol. 215(PA).
    13. Akber, Muhammad Zeshan & Thaheem, Muhammad Jamaluddin & Arshad, Husnain, 2017. "Life cycle sustainability assessment of electricity generation in Pakistan: Policy regime for a sustainable energy mix," Energy Policy, Elsevier, vol. 111(C), pages 111-126.
    14. Kazmi, Hussain & Mehmood, Fahad & Tao, Zhenmin & Riaz, Zainab & Driesen, Johan, 2019. "Electricity load-shedding in Pakistan: Unintended consequences, opportunities and policy recommendations," Energy Policy, Elsevier, vol. 128(C), pages 411-417.
    15. Ashfaq, Asad & Ianakiev, Anton, 2018. "Features of fully integrated renewable energy atlas for Pakistan; wind, solar and cooling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 14-27.
    16. Ali, Muhammad Rizwan & Shafiq, Muhammad, 2021. "Revealing expert perspectives on challenges to electricity Demand-Side Management in Pakistan: An application of Q-Methodology," Utilities Policy, Elsevier, vol. 70(C).
    17. Poudel, B. & Maley, J. & Parton, K. & Morrison, M., 2021. "Factors influencing the sustainability of micro-hydro schemes in Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    18. Abdullah, Fahad Bin & Arsalan Aqeeq, Muhammad & Iqbal, Rizwan & Abdullah, Maria & Memon, Falak Shad, 2024. "Enhancing electricity distribution efficiency in Pakistan: A framework for progress and action," Utilities Policy, Elsevier, vol. 88(C).
    19. Muhammad Asad & Farrukh Ibne Mahmood & Ilaria Baffo & Alessandro Mauro & Antonella Petrillo, 2022. "The Cost Benefit Analysis of Commercial 100 MW Solar PV: The Plant Quaid-e-Azam Solar Power Pvt Ltd," Sustainability, MDPI, vol. 14(5), pages 1-13, March.
    20. Syed Ahsan Ali Shah & Gordhan Das Valasai & Asif Ali Memon & Abdul Nasir Laghari & Nabi Bux Jalbani & Jody L. Strait, 2018. "Techno-Economic Analysis of Solar PV Electricity Supply to Rural Areas of Balochistan, Pakistan," Energies, MDPI, vol. 11(7), pages 1-19, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:167:y:2022:i:c:s0301421522002798. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.