Regulations

Facilitating And Promoting Renewable Energy

Alternate Energy Development Board (AEDB) is The Regulatory Body For Facilitating And Promoting Renewable Energy in Pakistan. The Board has been mandated to carry out the following key functions:

Implement policies, programs, and projects through the private sector in the field of ARE
Assist and facilitate development and generation of ARE to achieve sustainable economic growth
Encourage transfer of technology and develop indigenous manufacturing base for ARE Technology
Promote the provision of energy services that are based on ARE resources
Undertake ARE projects on a commercial scale (AEDB Act 2010)

The government of Pakistan has introduced the net metering facility for small power producers who wish to establish their power-producing facility at their premises, offices, hotels, or industries. Net metering facility has been made available to residential, commercial, and industrial customers.

Under net-metering customers can EXPORT or in other words sell power generated through their system to the national grid. The system allows the use of electricity from the grid which is referred to as ÏMPORT units. At the end of the month, import and export units are netted to arrive at the billing amount. If in a given month, the customer-generated more units than they consumed, they would receive a credit bill. Import and Export units are shown on the electricity bill.

Alternative Energy Development Board (Certification) Regulations, 2018

ALTERNATIVE ENERGY DEVELOPMENT BOARD NOTIFICATION Islamabad. the 6th day of February 2018 S.R.O.

In exercise of the powers conferred by Section 19 of the Alternative Energy Development Board Act, 2010, the Alternative Energy Development Board, finding it expedient to lay down a framework for the safe, secure and quality-assured supply of solar and wind energy generation products and installation and servicing thereof for small industrial, commercial, agricultural and residential installations, is pleased to make the following regulations, namely’-

(i) These regulations may be called the Alternative Energy Development Board (Certification) Regulations, 2018

(ii) These regulations shall come into force at once

(iii) These regulations shall apply for all products, projects, and installations of solar and wind power generation facilities of installed capacity of up to one megawatt with or without net metering

(iv) Words and expressions defined in the Act and used in these regulations shall carry the meaning given in the Act

In these regulations, unless there is anything repugnant in the subject or context:

(a) “Act” means the Alternative Energy Development Board Act, 2010

(b) “AEDB” or “the Board” means the Alternative Energy Development Board established under the Act

(d) “certified installer” means an installer holding a valid certificate

(e) “installer” means a natural or juridical person who, inter alia, supplies or installs equipment and facilities for solar or wind power generation for up to one megawatt capacity for small industrial, commercial or residential premises or provides other services related thereto including aftersales services to the customers.

(f) “customer agreement” an agreement in a form approved by AEDB to be entered into by and between the certified installer and the customers before undertaking any works or providing any services in respect of installations of solar or wind systems;

(g) “NEPRA” means National Electric Power Regulatory Authority established under section 3 of NEPRA Act 1997 (XI, of I997),

(h) “secretary” means the secretary to the Board.

(1) AEDB may, from time to time, invite applications for the certification of vendors/installers/service providers by publishing the invitation in categories as stated in schedule 1.

(2) The vendors/installers/service providers qualifying as per the eligibility criteria against each of the categories as stated in schedule 2 shall apply to AEDB for certification.

(3) After inviting applications for the first time, the vendors/installers/service providers may at their own apply at any time to AEDB for certification in any of the categories, the application(s)may be considered as per standard operating procedures prepared concerning these regulations.

(4) An application for certification shall comply with the requirements stated in schedule 3.

(5) An application with incomplete information or documents will be returned and may be refiled by the applicant after removing the deficiency whereupon the date of filing shall be the date when the complete application is filed with AEDB.

(6) An application complete in all respects will be issued an application process number.

(1) A team comprising three officers of AEDB nominated by the Chief Executive Officer referred to hereinafter as the processing team shall meet periodically to process the applications to make them ready for evaluation.

(2) The processing team may require the applicant to furnish such further information as may be required to elucidate the application.

(3) Where the processing team is satisfied that the application is complete in all respects, that all elucidations as required have been furnished and that the application merits evaluation, it shall forward the application to the evaluation team formed under regulation 5.

(1) A team comprising three officers of AEDB nominated by the Chief Executive Officer, that may include two other members each nominated by the Power Division of Ministry of Energy and Ministry of Science and Technology, referred to hereinafter as the evaluation team, shall meet periodically to evaluate the applications placed before it by the processing team.

(2) The evaluation team shall evaluate the applications based on the criteria specified in schedule 4 for each of the categories separately.

(3) Where an application meets the requisite score specified in schedule 4, the application shall be placed before the Chief Executive Officer with the recommendation for issuing the certificate. The processing team shall communicate the recommendation to the applicant along with the request for deposit of the certification fee specified in schedule 10

(4) Where an application does not meet the requisite score specified in schedule 4, the applicant shall be informed accordingly along with the scorecard. The applicant shall be entitled to apply afresh for a certificate.

(1) On receipt of the recommendation according to regulation 5, and subject to receipt of the certification fee, the Chief Executive Officer shall authorize the secretary to sign and issue the certificate.

(2) Each certificate shall be valid for one year from the date it is issued and may be renewed on annual basis.

(3) A certified installer shall be deemed to be screened for compliance with good practices for the supply, installation, or servicing of wind or solar projects and products of up to one-megawatt capacity and shall also be entitled to the privileges stated in schedule 6.

(1) The application for renewal of certificate and its processing shall be governed, mutatis mutandis, by regulations 3, 4, and 5.

(2) Where an application does not meet the requisite score for renewal specified in schedule 5, the applicant shall be informed accordingly along with the scorecard with a notice to cure the deficiency, if of a kind that can be cured, within thirty days failing which the certificate shall expire. (3) Provided the application for renewal is filed thirty days before the expiry of the certificate, the certificate pending evaluation of the renewal application by AEDB shall remain valid until the communication of the outcome of the evaluation process to the certified installer.

AEDB may prepare and publish, and update from time to time, the ranking of the certified installers based on the criteria laid down by AEDB from time to time.

Each certified installer shall:

(a) enter into a customer agreement before undertaking any installation works or provision of related services to the customer. The standard format of the customer agreement is given at schedule 7. Compliance with warranties and other terms and conditions set out in the customer agreement shall be deemed to be an obligation imposed on such certified installer under the customer agreement and these regulations; and

(b) take all appropriate safety measures prescribed by AEDB or any other competent authority from time to time.

(c) undertake activities including but not limited to as stated in schedule 8 that may be amended in consultation with the stakeholders in the public and private sector and approved by the CEO. AEDB.

(d) deposit a bank guarantee as per format and amount given in schedule 9 valid for at least two years extendable for period specified by AEDB

(1) If during the validity period of the Certificate, any complaint is lodged to AEDB against a certified installer about breach of these regulations, the matter will be referred to NEPRA for further proceedings against the installer. Customers can also complain about a breach of these regulations by a certified installer directly to NEPRA.

(2) NEPRA may, as an independent arbiter, may initiate proceedings for revocation of the certificate as issued by AEDB to certified installer against a complaint/application received by NEPRA either from AEDB or directly from any of its customers regarding breach of NEPRA’s DO regulations or these regulations by a certified installer.

(3) NEPRA may add a caution notice on any database of the certified installers and communicate to AEDB that it has initiated proceedings against a certified installer that may lead to the revocation of its certificate.

(4) NEPRA through writing will provide the installer an opportunity of hearing. NEPRA being satisfied that the installer fails to justify, breach of certification regulations is established, and complaint/application of customer is genuine, issue a notice to AEDB to revoke a certificate issued to a certified installer. AEDB, upon receipt of notice from NEPRA and with the approval of the CEO AEDB, may revoke its certificate and the name of the installer may be included in a black-list.

(5) To aid assessment of NEPRA regarding any reported breach, or performance of the company, NEPRA can consider engaging a third-party auditor to carry out an independent assessment and submit its findings in the shape of a report.

(6) On revocation of a certificate: (a) the privileges set out in schedule 6 attendant to certification under these regulations shall cease forthwith and the name of certified installer whose certificate is revoked may be black-listed. (b) the bank guarantee submitted by the certified installer shall be encashed

(7) A certified installer whose certificate is revoked may apply for removal of his name from the black-list and issue of the certificate afresh after expiry of two years following the revocation of the certificate.

The Board may delegate any or all of its powers and functions under these regulations to the Chief Executive Officer or any officer of the Board. 12. Fees. All fees received according to these regulations shall be paid into the Fund constituted under section 13 of the Act. 4