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The National Electric Power Regulatory Authority (NEPRA) has unveiled its latest framework for prosumers under the National Electric Power Regulatory Authority (Prosumer) Regulations, 2026. These rules aim to streamline how consumers can generate their own electricity using renewable sources and connect to the national grid. The regulations take immediate effect, signaling a new chapter for distributed energy in Pakistan.
Under these regulations, NEPRA defines key terms to guide implementation. A “prosumer” is any domestic, commercial, industrial, agricultural, or general services consumer, including single-point bulk supply users, who wishes to generate electricity and interconnect with a licensee’s distribution system. Eligible generation must come from solar, wind, or biogas energy and cannot exceed 1 MW.
The rules also clarify the process of applying for interconnection. Consumers submit an application to the licensee, seeking formal concurrence from NEPRA. This includes signing an agreement using the Authority’s approved format. The regulations reference all applicable documents, including license terms, guidelines, codes, tariffs, and notifications issued under the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997 (XL of 1997).
A distributed generation facility, or DG facility, is defined as the equipment and infrastructure a prosumer installs to produce electricity from renewable sources. The power generated is measured through a 30-day billing cycle, ensuring proper accounting and transparency. Once interconnected, the prosumer can supply electricity to the grid while complying with the applicable tariff determined and notified by NEPRA.
These regulations provide a clear roadmap for prosumers, making it easier for Pakistan’s households and businesses to adopt renewable energy. They encourage self-generation while ensuring the safety and stability of the wider electricity network.
