Mainstreaming Residential Prosumers in Energy Sector

Abstract

With the evolution of Solar PV technology, old paradigm of consumers being passive recipients is changing fast. Distributed generation with the help of end-users can be instrumental in realizing goals of making the energy sector more decentralized, decarbonized and democratized. Against the backdrop, residential prosumers have occupied central role in the transition debate. If adequately empowered, they can prove the change agents for facilitating integration of renewables and building a more sustainable future. However, if policy instruments fail to correspond to the needs of the newly evolving role of consumers as proactive market actors, it would stifle their participation in market. In the case of Pakistan, flawed energy pricing, provision of net-metering facility by limited DISCOs along with cumbersome procedures of availing the facility, and barring of small-scale prosumers from net-metering facilities and financial schemes indicates few major barriers in the way of PV infrastructure dissemination. A strong need exists for addressing the weaknesses in the current policy tools for mainstreaming active engagement of residential prosumers in the energy sector. A prosumer is a person who consumes as well as produces a product. On the given lines, energy prosumer refers to those customers who self-generate energy for wholly or partially meeting their own energy needs. They are energy producers and consumers at the same time, resulting in a two way or bi-directional flow of energy.