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Share of coal in power mix has reached 32 percent, as the coal based power generation went up by 72 percent YoY during January 2020 and the coal based generation was witnessed at 2,501 GWh during Jan '20, said sources.

They said the induction of China Power Hub Generation and Engro Powergen Thar in the system was the primary reason behind this surge. The coal and hydel generation have replaced furnace oil and gas.

It may be noted that the power generation remained 7,794GWh (10,475 MW) during January 2020, compared to 7,764 GWh (10,435 MW) during January 2019. Major contributors during Jan 20 remained coal, gas, hydel, furnace oil and nuclear. Hydel based power generation went up by 82 percent, followed by 72 percent YoY rise in coal based generation. However, furnace oil (FO), nuclear, RLNG and gas based generation went down by 54 percent YoY, 25 percent YoY, 16 percent YoY and 3 percent YoY, respectively. Power generation went up by 1.8 percent during 7MFY20, they added.

Sources said the fuel cost for power generation went down by 18 percent YoY to PKR5.99/KWh on the back of higher generation on hydel and coal. During 7MFY20, power generation went up by 1.8 percent YoY to settle at 74,261 GWh. Given higher generation on hydel and coal, fuel costs have shrunk by 8.5 percent YoY to an average at PKR4.99/KWh during 7MFY20.

They said the fuel cost has come down by 18.1 percent YoY during Jan '20 due to the reason that the coal-based generation cost has witnessed a decline of 12.4 percent YoY attributable to 6.3 percent YoY decline in the international coal prices.

The furnace oil-based generation cost witnessed a decline of 1.1 percent YoY; while the FO-based generation also went down by 54 percent to 801 GWh. Furnace oil is a relatively expensive source of power generation compared with coal. The hydel-based (no fuel cost) power generation witnessed an increase of 82 percent YoY to 868 GWh. Bagasse-based cost of generation went down by 3.3 percent to

PKR6.0/KWh. Wind-based power generation went up by 0.8 percent YoY to 158 GWh. Solar-based power generation also went up by 3.8 percent YoY to 45 GWh.

Copyright Business Recorder, 2020

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