Enhancing Renewable Energy Integration in Developing Countries: A Policy-Oriented Analysis of Net Metering in Pakistan Amid Economic Challenges

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

In the abstract of the paper, the author should identify the specific developing country. In addition, the author should also provide some quantified important results as research results.

Comments on the Quality of English Language

NONE.

Author Response

Reviewer-1:

Reviewer-1, Comment-1: In the abstract of the paper, the author should identify the specific developing country. In addition, the author should also provide some quantified important results as research results.

 

Response to Reviewer-1, Comment-1:

The authors are grateful for the comment since it will add value to the quality of manuscript. It is stated that the comment is addressed as per reviewer’s kind comment in the modified manuscript as highlighted.

 

Net metering (NM) is among the potent regulatory tools globally for supporting distributed generation and renewable energy sources. This paper examines the trajectory of NM in a developing country such as Pakistan, analyzing impact of regulatory changes, confidence-building strategies, hindering factors, and technical/financial issues. The three-stage methodology involves three contingents such as techno-economic analysis, stakeholder engagement surveys, and impact analysis of financing mechanisms. The study emphasizes the importance of clear regulatory and financial frameworks, grid upgrades, and public-private partnerships for technology distribution in the context of a developing country with weak grid utilities and an import-export energy ratio. It also explores the role of financial incentives, such as tax breaks and subsidies, to encourage investment in NM systems from the perspective of lucrative rates, impact on paybacks and return on investments and proposes concrete solutions to enhance financial inclusion for ambitious renewable energy goals. Till April 2023, over 56,000 NM/distributed generation facilities were commissioned, with an installed capacity of 950 MW. By May 2024, the number of NM consumers reaches to ~100,000, with 1950 MW capacity, nearly doubled. However, the import and export ratio of IESCO have found most disturbed with 61% export and 39% import, directly impacting the revenue stream. 60% of banks have adopted actions linked with green banking criteria, aiming to limit their environmental impact. The change of tariff will result in reduced ROI for NM consumers to 20% and increasing the payback period from less than 4 years to 13 year, respectively. Government subsidies, tax breaks, and green financing frameworks are proposed to encourage investment have been abruptly halted which were previously at 6% interest rate. The research aims to provide insights into effective market evaluation methodologies for NM programs and offer policy recommendations to strengthen legislative and institutional frameworks governing NM.

 

 

Author Response File: Author Response.docx

Reviewer 2 Report

Comments and Suggestions for Authors

1.      The main contributions are too many, making the technical advances not concentrating.

2.      The dataset features to make the proposed methodology feasible should be explained.

3.      The detailed indices or variables to describe the three methods should be discussed in section 3.

4.      Some figures or tables to show the questionnaires are suggested to be moved to the appendix section.

5.      Section 4.4 is suggested to be moved as a separate section.

Author Response

Reviewer-2:

Reviewer-2, Comment-1: The main contributions are too many, making the technical advances not concentrating.

Response to Reviewer-2, Comment-1:

The authors are grateful for the comment since it will add value to the quality of manuscript. It is stated that the techno-economic aspect has addressed as Methodology Contingent-1: Techno-Economic Analysis in section 3, sub-section-3.1. Moreover, in the results and discussion section, the detailed results have shown in section 4, subsection 4.1.

 

Reviewer-2, Comment-2: The dataset features to make the proposed methodology feasible should be explained.

Response to Reviewer-2, Comment-2:

The authors are thankful for your kind comment. It is stated that the dataset features to make the proposed methodology feasible have explained in detail in section 3 and section 4, respectively.

 

Reviewer-2, Comment-3: The detailed indices or variables to describe the three methods should be discussed in section 3.

Response to Reviewer-2, Comment-3:

The authors are thankful for your kind comment. It is stated that the methodology has explained in detail in section 3 and results and discussions in section 4, in order to keep the discussion relevant, precise and to the point, respectively.

 

Reviewer-2, Comment-4: Some figures or tables to show the questionnaires are suggested to be moved to the appendix section.

Response to Reviewer-2, Comment-4:

The authors are thankful for your kind comment. It is requested to keep the format that way since it will disturb the flow of reader and the questions have kept that way along with figures as per the methodology flow to easily follow the pattern properly. The authors hope that the reviewer will allow to keep it that way.

 

Reviewer-2, Comment-5: Section 4.4 is suggested to be moved as a separate section.

Response to Reviewer-2, Comment-5:

The authors are thankful for your kind comment. It is stated that the section 4.4 has been made a separate section 5 in the modified manuscript as per your kind comments, also highlighted.

 

 

Author Response File: Author Response.docx

Reviewer 3 Report

Comments and Suggestions for Authors

Attached please find the comments.

Comments for author File: Comments.pdf

Author Response

Reviewer-3

Comments on sustainability-3050053-peer-review-v1：

This paper examines the trajectory of NM in a developing country, analyzing the impact of regulatory changes, confidence-building strategies, hindering factors, and technical/financial issues. The three-stage methodology involves three contingents such as techno-economic analysis, stakeholder engagement surveys and impact analysis of financing mechanisms. The study emphasizes the importance of clear regulatory and financial frameworks, grid upgrades and public-private partnerships for technology distribution in the context of a developing country with weak grid utilities and an import-export energy ratio. It also explores the role of financial incentives, such as tax breaks and subsidies, to encourage investment in NM systems from the perspective of lucrative rates, impact on paybacks and return on investments and proposes concrete solutions to enhance financial inclusion for ambitious renewable energy goals. My overall opinion is that this paper could be interesting valuable paper if major modifications are implemented.

1. In the introduction, net metering (NM) is not mentioned in detail and is not closely aligned with the research in this paper. Please add it.
2. In the results and discussions, regarding the analysis of influencing factors, the authors only analyzed aspects such as financial preparation and this study would have been more complete, if consumer aspects such as business and industry had been included.
3. The graphs associated with this paper are not very aesthetically pleasing. It would be perfect if it could be beautified. It also helps the reader to understand the research.
4. In the conclusions and policy implications, the authors have elaborated on the findings of this paper but it would have taken this paper to a new level, if the effects of the practical application of this research had been more visually expressed.
5. The formatting of the references in this paper is rather confusing. Please revise it.
6. The references should be expanded. Some new literatures might be help the authors to further deepen the understanding of reaction mechanism as well as newest developing in this field (Journal of Environmental Management, 2023, 326: 116790 Regeneration mechanism of a novel high-performance biochar mercury adsorbent directionally modified by multilayer loading).

The authors are grateful for your time and efforts and will address each point separately.

 

Reviewer-3, Comment-1:

In the introduction, net metering (NM) is not mentioned in detail and is not closely aligned with the research in this paper. Please add it.

Response to Reviewer-3, Comment-1:

The authors are grateful for the comment since it will add value to the quality of manuscript. It is stated that in order to keep the introduction crisp and to the point, the review literature is closely aligned. In the initial paragraph, NM approach has properly described in context of global context. Later from the developing countries perspective and considering Pakistan as a case study, encountered distinct challenges in RES integration, impeding enthusiastic NM adoption due to constraints such as limited resources, inadequate grid infrastructure, and regulatory complexities have been mentioned. Particularly later across economic downturn, Pakistan's NM landscape, from the perspective of regulator such as National Electric Power Regulatory Authority (NEPRA) across residential, commercial, industrial, and agricultural sectors and country's goal to develop inexpensive and environmentally sustainable renewable energy, which contributes to SDGs 7, 9, 11, and 13. Later world perspective with NM is shown across references [10] to [17]. The technoeconomic perspectives have covered from references [18]-[37]. Later from Pakistan’s perspective, the limitations have mentioned in references [38-46]. The bridging of limitations in all the previous studies and current situation with future roadmap is the very novelty of this study. It is stated that the literature review is composite and to the point and authors hope that their answer will meet the reviewer’s criteria. 

 

Reviewer-3, Comment-2:

In the results and discussions, regarding the analysis of influencing factors, the authors only analyzed aspects such as financial preparation and this study would have been more complete, if consumer aspects such as business and industry had been included.

Response to Reviewer-3, Comment-2:

The authors appreciate to consider consumer characteristics such as company and industry while analyzing affecting factors. We understand the significance of these elements in presenting a comprehensive picture of the effects of NM systems. It is stated that it is already addressed in section 42 Methodology Contingent-2: Stakeholder Engagement. Further in section 4.2.1, the survey across Utilities, Industries, Vendors and Consumers have been tabulated.

Reviewer-3, Comment-3:

The graphs associated with this paper are not very aesthetically pleasing. It would be perfect if it could be beautified. It also helps the reader to understand the research.

Response to Reviewer-3, Comment-3:

The authors are thankful for your kind comment. It is requested to keep the format that way since it will disturb the flow of reader and the questions have kept that way along with figures as per the methodology flow to easily follow the pattern properly. The authors understand the importance of aesthetically pleasing and clear visual representations in aiding the reader's understanding of the research. It has kept simple, to the point to easily follow for a large segment of scientific community. The authors hope that the reviewer will allow to keep it that way. The flow of the paper is simple and have shown as follows.

 

The paper is structured as follows: Besides the literature review, Section 2 outlines the NM System in Pakistan. Section 3 details the three-stage methodology. Section 4 presents result and discussions, encompassing techno-economic in-depth analysis, stakeholder engagement, and financial mechanisms. The key challenges in availing concessionary financing have mention in section 5. The paper concludes in Section 6 with policy implications.

 

Reviewer-3, Comment-4:

In the conclusions and policy implications, the authors have elaborated on the findings of this paper but it would have taken this paper to a new level, if the effects of the practical application of this research had been more visually expressed.

Response to Reviewer-3, Comment-3:

The authors are thankful for your kind comment. Your suggestion to visually express the effects of the practical application of our research in the conclusions and policy implications section is well noted. The authors have tried their best of efforts to incorporate visual aids, such as diagrams or flowcharts, to illustrate the research flow. It is stated that the authors are already working on the advance level of this paper where the practical applications with visual projections across normal metering, gross metering and net metering have shown below in figures 1(a)-(f) and figures 2(a)-(f), respectively. The aim is to mention the practical applications and potential impacts of our findings more effectively. The results are only shown here confidentially for the visual application.

 

Figure-1: (a) Import Export Variation.

Figure-1: (b) Analysis with maximum consumption.

Figure-1: (c) Import Export Variation.

Figure-1: (d) Normal Metering Analysis.

Figure-1: (e) Net Metering Analysis.

Figure-1: (f) Gross Metering Analysis.

Figure-2: (a) Comparative Analysis with Normal metering, NM and GM across Peak billing.

Figure-2: (b) Consumer segment-based classification across bill returns for utility in Million-PKR.

Figure-2: (c) No. of Licenses in IESCO with broad classification.

Figure-2: (d) No. of Licenses in IESCO with consumer capacity classification.

Figure-2: (e) Comparative Bill Analysis Capacity IESCO.

Figure-2: (f) Comparative Bill Analysis Capacity with various modes IESCO.

 

Reviewer-3, Comment-5:

The formatting of the references in this paper is rather confusing. Please revise it.

Response to Reviewer-3, Comment-5:

Thank you for the comment. It is requested that the references have followed as per the authors guideline of the prestigious journal.

 

Reviewer-3, Comment-6:

The references should be expanded. Some new literatures might be help the authors to further deepen the understanding of reaction mechanism as well as newest developing in this field (Journal of Environmental Management, 2023, 326: 116790 Regeneration mechanism of a novel high-performance biochar mercury adsorbent directionally modified by multilayer loading).

Response to Reviewer-3, Comment-6:

The authors are grateful for your kind comment and it is requested that this comment have already answered in aforementioned in “Response to Reviewer-3, Comment-1”. The authors agree that expanding the reference list with new literature will enhance the depth and context of our study, however the abovementioned reference is not relevant to the presented study.

 

 

Author Response File: Author Response.docx

Reviewer 4 Report

Comments and Suggestions for Authors

The study emphasizes the importance of clear regulatory and financial 16 frameworks, grid upgrades, and public-private partnerships for technology distribution in the context of a developing country with weak grid utilities and an import-export energy ratio. The documents provide a comprehensive and clear view of Pakistan energy sector.

The analysis is very extensive and it may be reduced in order to be better followed by the reader. Stakeholder analysis is based on very limited data (23 responders only) which can not provide a representative analysis of the market. If the authors are not able to collect more data, it is recommended to summarize the outcome of the study and to avoid a detailed analysis.

The tables and figures description should be shortened and the analysis should be moved to the main document.

Diagrams format should be uniform and to be improved. Grey background may be removed.

Paragraph 4.2.2 may be summarised and the detailed questionairre can be included as annex

Comments on the Quality of English Language

A more detailed proof reading from the authors will be enough.

Author Response

Reviewer-4

Reviewer-4, Comment-1:

The study emphasizes the importance of clear regulatory and financial 16 frameworks, grid upgrades, and public-private partnerships for technology distribution in the context of a developing country with weak grid utilities and an import-export energy ratio. The documents provide a comprehensive and clear view of Pakistan energy sector.

 

Response to Reviewer-4, Comment-1:

The authors are grateful the comment and it encourages the authors a lot.

 

Reviewer-4, Comment-2:

The analysis is very extensive and it may be reduced in order to be better followed by the reader. Stakeholder analysis is based on very limited data (23 responders only) which cannot provide a representative analysis of the market. If the authors are not able to collect more data, it is recommended to summarize the outcome of the study and to avoid a detailed analysis.

 

Response to Reviewer-4, Comment-2:

The authors are grateful for your kind comment. It is stated that the main aim of the study is to provide a comprehensive overview of current state of NM and indicates the limitations of future growth requirements It is requested that net metering regime is still in the first decade of implementation and all the responders are experts and relevant persons. In developing country like Pakistan, the authors tried their best to get the response from concerned persons in the field. The sample size of the market is although small, however it gives an accurate picture of the current status. Hence it is requested that the flow of the study as per methodology demands a proper flow and is already cut short and to the point, aiming at the full picture to the scientific community. The authors hope that their response will meet the reviewer’s criteria. 

 

Reviewer-4, Comment-3:

The tables and figures description should be shortened and the analysis should be moved to the main document.

 

Response to Reviewer-4, Comment-3:

The authors are grateful for your kind comment. It is stated that the tables and figures have been shown with all the relevant details for the easiness of the reader and to maintain the proper research flow. Also the appendix section includes the base data that has been used in the study and can be used by anyone to replicate the study, showing professional data for others to use. 

 

Reviewer-4, Comment-4:

Diagrams format should be uniform and to be improved. Grey background may be removed.

 

Response to Reviewer-4, Comment-4:

The authors are grateful for your comment. It is requested that the figures have carefully drawn since the data scale varies a lot. The normalized size may deviate the interpretation. Also, the grey highlighted areas are shown as per their difference in power and no. of consumers.

 

Reviewer-4, Comment-5:

Paragraph 4.2.2 may be summarised and the detailed questionairre can be included as annex

 

Response to Reviewer-4, Comment-5:

The authors are grateful for your comment. It is stated that banks were an important part of green mechanisms and their inputs were very vital as separate questionnaire. 

 

Reviewer-4, Comment-6:

Comments on the Quality of English Language: A more detailed proof reading from the authors will be enough.

 

Response to Reviewer-4, Comment-6:

The authors are grateful for your comment. It is stated that the authors have tried to best of efforts to improve the language and addressed the minor typo errors.

 

Author Response File: Author Response.docx

Round 2

Reviewer 2 Report

Comments and Suggestions for Authors

N/A

Author Response

The authors are grateful for your kind reviewing services. 

Reviewer 3 Report

Comments and Suggestions for Authors

All the questions have been answered satisfactorily. I think the manuscript can be published in its present form.

Author Response

The authors are grateful for your kind efforts and review time. Thank you once again. 

Reviewer 4 Report

Comments and Suggestions for Authors

Even though the comments were partially adapted, authors response to each comment is adequate and the paper can be accepted in present form.

Author Response

The authors are grateful for your kind efforts and your precious time to review the paper.