Prime Minister Shehbaz Sharif, by telling loss-making distribution companies Peshawar Electric Supply Corporation and Quetta Electricity Supply Corporation to opt for solar power on their high-loss feeders, has initiated a process that should have begun a long time ago. This process should not be allowed to generate into an avenue of corruption over the acquisition of land on which to set up the requisite solar panels, but should be taken together with the government’s planned privatization policy. It brings PESCO and QESCO into the business of generation as well, where they should have been a long time ago. Neither of these DISCOs should fall into the trap of imagining that generation is only possible by huge installations. The consumer, who has gotten into generation, had shown that solarization meant a democratization of generation. One advantage for the generation companies was they did not have to mobilize resources for new generation. However, the DISCOs found they had to buy all the solar power generated, even as they had to pay for all the rental power which was being billed even when not generated.
One of the reasons why solarization has worked is because there has been no land acquisition cost, as consumers have used their roofs. Rather than acquire vast tracts to plunk solar panels, the DISCOs need to develop a model where consumers use their own roofs. There is also confident talk of developing micro-grids, so that certain areas could use power from the grid, or the solar power generated, if there was a grid power shutdown. One of the key factors would be the development of storage, which consumers cannot afford, and for which large entities are better suited.
In short, it is up to the DISCOs to ensure that the consumer continues to benefit from remaining on the grid. The cost advantage of solar power is too much to ignore, and the DISCOs must get on the bandwagon they have missed. The move of the courts to solarization has been approved by the Lahore High Court on the ground of continuity, though cost savings will also be visible. It is now the turn of the federal and provincial governments to convert their vast roofs to a means which is more preserving of the taxpayers’ money than merely depending on the grid. Grid electricity simply costs too much.
