KARACHI: Pakistan’s power generation recorded at 127,259 GWh (14,504MW) during FY24 down 2.0 percent on year-on-year basis primarily led by slow down in overall economic activity and lower demand amid rising power tariff, experts said.

Hydel contributed the most to power generation (31 percent in FY24 against 28 percent in FY23), followed by RLNG (19 percent FY24 against 17 percent in FY23) and Coal (16 percent in FY24 against 16 percent in FY23) based power generation. Nuclear, Gas, Wind, and Furnace Oil (FO) based generation contributed 18 percent, 9.0 percent, 3.0 percent, and 2.0 percent respectively towards country’s power generation in FY24.

In absolute terms, hydel and RLNG contributed the most to additional power generation, a research report of Topline Securities said. However, power generation from Gas and FO declined, it added.

The three new solar-based power additions to the system include Helios Power (capacity 50 MW), Meridian Energy (capacity 50 MW), and HNDS Energy (capacity 50 MW). However, Kot Addu Power (KAPCO) plant, with a power generation capacity of 1,336 MW was removed from the system after its expiry of power purchase agreement (PPA), the report said.

This takes total installed capacity to 40,281MW in FY24 compared to 41,460MW in FY23, it added.

The report said that average fuel generation cost was down by 6.0 percent YoY to Rs 8.8/KWh in FY24 compared to Rs 9.3/KWh in FY23. In the month of June 2024, fuel cost declined by 11 percent YoY and 2.0 percent MoM to Rs 8.6/unit. It is interesting to note that around 45 percent of Pakistan’s power generation is from RLNG, Coal, and Gas with an average fuel cost of Rs 17/unit in FY24.

Separately, cost of generation using coal has declined by 13 percent YoY to Rs 12.9/Kwh due to decline in international coal prices by 47 percent.

Copyright Business Recorder, 2024

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