Govt to Introduce Virtual Grid System to Boost Battery Storage and Reduce Load-Shedding

The government is working on a new virtual grid system that will allow electricity consumers to generate and store power, Power Minister Awais Ahmad Khan Leghari said on Wednesday.

Speaking to the media after a meeting of a National Assembly committee, Leghari said the government had started preparing regulations for virtual grids. He added that the rules are expected to be finalised by the last quarter of the current fiscal year.

Govt to Introduce Virtual Grid System to Boost Battery Storage and Reduce Load-Shedding

The government also plans to increase the use of batteries across the power sector. Power distribution companies (Discos) have been directed to install batteries on their grids as part of efforts to improve electricity storage and strengthen the overall power system.

Leghari said Pakistan was moving towards greater use of battery technology and that the government wanted to make energy storage an important part of the electricity system.

New System to Target Load-Shedding

The minister also faced questions from members of the National Assembly Standing Committee on Power over prolonged electricity outages.

Leghari said load-shedding was currently taking place on around 3,500 of the country’s 14,500 feeders. He attributed the outages mainly to electricity theft and line losses.

According to the minister, the government plans to shift load-shedding from feeders to individual transformers within a year. This would prevent an entire feeder from being switched off when problems are limited to specific areas.

The government is also introducing an on-off control system for around 190,000 transformers. Leghari said the system would allow authorities to manage electricity supply more selectively.

The new system will protect consumers who regularly pay their electricity bills from load-shedding caused by losses in other areas.

The minister said there was currently no additional load-shedding in the country. He attributed many ongoing outages to faults caused by overloading of the power system.

Higher Fuel Costs Affect Electricity Supply

Leghari said the power system requires significant investment and that the government would seek approval from the National Electric Power Regulatory Authority (NEPRA) for the required upgrades.

He also linked the country’s electricity challenges to higher fuel costs and changes in the energy supply situation.

According to the minister, disruptions involving the Strait of Hormuz had affected the Petroleum Division’s ability to receive LNG cargoes. The government was therefore using locally produced gas for power generation.

Leghari said the cost of a gas cargo that previously stood at around $30 million had increased to more than $95 million. He argued that operating the power system during peak periods could increase electricity costs and fuel expenses.

The minister also clarified that the government had not signed any new agreement with an independent power producer (IPP), rejecting reports suggesting otherwise.

Lawmaker Raises Concerns Over Electricity Prices

During the committee meeting, PML-N MNA Rana Muhammad Hayat criticised the continued load-shedding and electricity prices.

He questioned why electricity prices had not fallen despite extensive discussions and government measures. Hayat also criticised the performance of the Discos and said policymakers and the power ministry needed to take responsibility for the current situation.

He further expressed concern that government policies appeared focused on meeting the requirements of the International Monetary Fund (IMF) rather than addressing problems faced by consumers.

Leghari rejected the criticism and described the statement as irresponsible for a formal parliamentary forum.

The government’s planned virtual grid system and increased focus on battery storage are part of broader efforts to improve electricity management. The success of these measures will depend on the final regulations, investment in the power network and the ability to reduce losses and manage electricity demand more efficiently.