Power Consumption Growth: How Net Metering is a Challenge for GEPCO

Gujranwala Electric Power Company (GEPCO) has shared a major investment plan for 2024–2030 to improve its electricity network and tackle challenges in the energy sector. One of the main hurdles in this plan is the increasing use of net metering. Net metering lets consumers generate their own electricity, usually through solar panels, and send extra power back to the grid. While this benefits consumers, it creates issues for power companies like GEPCO.

What is Net Metering?

Net metering is a system where consumers use solar panels or other renewable energy sources to produce electricity for their own use. When they produce extra electricity, it goes back to the main power grid, and the consumers get credit for it. This means they pay less for electricity from the company. While this is great for users and promotes clean energy, it can reduce the income of power companies like GEPCO.

Benefits for Consumers:

• Lower electricity bills
• Contribution to cleaner energy
• Energy independence

Challenges for Companies:

• Reduced sales and revenue
• Complex grid management

You may also read: Net Metering in Pakistan 2025 (Benefits, Process, and Costs)

GEPCO’s Investment Plan

GEPCO has proposed an investment of Rs. 100 billion to improve its electricity network over six years. The focus is on reducing electricity losses and increasing efficiency. They plan to lower losses from 8.85% to 8.65% and meet the 2.4% annual demand increase. Another major target is increasing net metering capacity by 1,176%. These investments aim to modernize the electricity system and make it ready for future challenges.

Challenges Due to Net Metering

Net metering brings several problems for power companies. The biggest issue is reduced income since consumers generate their own electricity. This also affects how the grid works, as managing a lot of small energy producers becomes difficult. GEPCO also needs more advanced technology to handle these changes. Moreover, the company has to recover its large investments, which might take longer with decreasing sales.

GEPCO’s Solutions to Net Metering Issues

To solve the problems caused by net metering, GEPCO has developed strategies. They plan to improve their grid infrastructure with new technologies that can handle energy from multiple sources. They also aim to create new services to support customers who generate electricity. Additionally, GEPCO is working with government bodies to make policies that benefit both consumers and the company.

How Net Metering Affects Power Consumption

Net metering changes how electricity is used. Since consumers can produce their own power, they use less electricity from the company. This reduces the overall consumption of the grid. It also shifts peak electricity usage times, as solar panels produce the most energy during the day. More people might invest in solar panels, helping the environment but reducing demand for grid electricity.

Conclusion

GEPCO’s investment plan is a step toward a better and more modern electricity system. However, net metering is a challenge that needs careful planning. By upgrading infrastructure, developing policies, and offering new services, GEPCO aims to handle the changes. This will ensure a reliable electricity supply for consumers while supporting renewable energy growth.

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