One of the main arguments against solar energy has been the burden that is thrown on the grid consumers, who will have capacity charges averaged out per unit and be forced to pay up. However, the latest petition before the National Electric Power Regulatory Authority by the various power firms for a reduction in Fuel Adjustment Charge shows how solar power indicates that the solar-power revolution might be unstoppable not just because it makes economic sense, but because it makes economic sense for too many stakeholders. The nice thing about solar power is that it has no fuel cost in its overall cost, the only costs being generation and distribution. The net-metering consumers are adding solar power to the grid, generated without a fuel cost. The electricity they use is deducted, applying the regular tariff rate. The net-metering phenomenon has grown so large that the fuel cost per unit generated is thus lower for all consumers.
A major component of the tariff that has not yet been computed for solar power, and which will kick in sooner rather than later, is that of the burden of investing in generation equipment. Whereas power utilities used to put up huge powerhouses, now consumers themselves install solar panels. While this is only a few KV per roof., cumulatively this is significant. In the first quarter of the year, there was an uptake by distribution companies of 575.7 Gown, which was well over five percent of total generation. If the government was to encourage the transition to solar power, Another interesting prospect is the modular nuclear reactor. Nuclear power still proves to provide the cheapest energy, but modular reactors, which be built in a factory and then installed at the planned site, with a pating of 300 MW, are good prospects for the more inaccessible areas of Azad Kashmir and Gilgit Baltistan.
The problem may be that power producers used to thermal generation, cannot really wrap their heads around the concept of no fuel. It is understandable that producers, transporters and sellers of oil to feel threatened by solar power, but the economics is becoming too strong, even if one was to ignore the environmental benefits. The government should realize that solar power means lower tariffs, not just the lower oil import bill it knows of, and work for more adoption, not less.
