In a significant development in Sindh’s energy sector, consumers in areas disconnected from the national grid, as well as those facing prolonged power outages, may soon be able to generate and distribute electricity locally through microgrid systems, particularly using renewable energy sources. The Sindh Electric Power Regulatory Authority (SEPRA) will regulate microgrid licensing and determine applicable tariffs under the proposed framework.
SEPRA, the province’s power sector regulatory authority, has completed its first public hearing on the draft Microgrid Regulations 2026, seeking stakeholder input before finalising its recommendations. The authority has also asked the Sindh government to propose four to five villages for a pilot microgrid project aimed at extending electricity access to communities not connected to the national grid.
Representatives of the Karachi Chamber of Commerce and Industry (KCCI), the Korangi Association of Trade and Industry (KATI), the Association of Builders and Developers (ABAD), civil society, the media and public sector institutions participated in the hearing, held under the chairmanship of SEPRA Chairman Rafiq Ahmed Sheikh.
The hearing provided a platform for stakeholders to offer their views on the proposed regulations, while the authority explained its mandate, the objectives behind the establishment of SEPRA and the proposed regulatory framework for microgrids.
Under the proposed system, local power generation units, microgrids and distribution networks could be established in areas where the national grid does not reach or where distribution companies are unable to provide an adequate electricity supply. The arrangement is expected to improve supply reliability, potentially reduce electricity costs and encourage investment in the power sector.
Microgrids could also help improve socioeconomic conditions in underserved areas by providing communities with access to a more reliable electricity supply. However, the effectiveness of the proposed framework will depend on the final regulations, licensing requirements, tariff arrangements and their implementation.
During the hearing, ABAD representatives called for a flexible regulatory framework that would not unnecessarily restrict the establishment of microgrids. They proposed that licensing requirements and operating rules should reflect local needs and the specific circumstances of different areas.
Participants also raised questions about investment opportunities, electricity tariffs, land requirements and the Sindh government’s land policy. Discussions highlighted concerns that existing regulatory requirements could discourage investment in microgrid projects in suburban areas.
An ABAD vice chairman disclosed that dozens of residential projects in Karachi remained uninhabitable despite being developed because electricity connections had not been provided. He also pointed out that residential schemes developed by the Malir Development Authority (MDA) remained inactive due to unresolved electricity supply issues.
The issue highlighted the potential role of decentralised power generation in addressing electricity infrastructure gaps in expanding urban and suburban areas.
Chairman Rafiq Ahmed Sheikh and the authority’s three other members said SEPRA would proceed in consultation with stakeholders while keeping consumer rights at the forefront of its regulatory approach.
In another significant step, SEPRA has asked the Sindh government to identify four to five villages where a pilot microgrid project could be launched. The project is intended to explore alternative arrangements for electricity generation and distribution in communities without access to the national grid.
The pilot is expected to move forward once the provincial government proposes suitable locations.
SEPRA is also awaiting data from the Sindh Solid Waste Management Board (SSWMB) to assess opportunities for electricity generation from municipal solid waste. The authority has already approached the board for the relevant information, which is considered necessary to evaluate potential waste-to-energy projects.
The availability of reliable municipal waste data could help determine the feasibility of projects that convert waste into energy, opening another avenue for diversifying Sindh’s energy resources.
Despite the potential of renewable energy and decentralised generation, stakeholders noted that administrative and regulatory obstacles continued to affect the implementation of various energy projects in Sindh.
SEPRA is expected to formulate its final recommendations on the proposed Microgrid Regulations 2026 after reviewing stakeholder submissions. The final regulatory framework will determine the licensing process, tariff arrangements and operational requirements governing microgrid projects across the province.