Net metering only via energy communities for smaller industries

An energy ministry proposal, in ongoing consultation, calling for a drastic reduction of a net-metering upper limit to 100kW from 3 MW, was made with the grid’s capacity limits in mind after power grid operator IPTO and distribution network operator DEDDIE/HEDNO informed the ministry that the network would not be able to cope should RES self-producers simultaneously inject generation into the system during times of heightened production, a move most probable from smaller producers not equipped with energy storage units.

Energy ministry proposals included in a draft bill now undergoing consultation essentially aim to virtually eliminate small and medium-sized industries from net metering through the plan to reduce its upper limit to 100kW from 3 MW.

The prospect has sparked a reaction from industries, viewing net metering as an import tool for energy-cost reduction, especially for medium-sized industries as bigger industrial enterprises consume far greater energy quantities and seek other solutions offering more effective cost-reduction potential, such as long-term supply deals.

However, the proposed 100kW upper limit for net metering could be overcome if at least fifteen enterprises join forces to establish an energy community, according to the energy ministry proposal.