KARACHI: Power generation increased by 7.2 percent YoY to arrive at 10,262 GWh (13,793 MW) during October 2024, compared to 9,572 GWh (12,865MW) during the same period last year. Moreover, on a MoM basis, power generation witnessed dip of 17.8 percent.
During the first four months of FY25, power generation fell by 5.4 percent YoY to 50,808 GWh (17,211 MW) compared to 53,709 GWh (18,194 MW) in the same period last year.
During October 2024, actual generation exceeded the reference generation by 0.7 percent for the first time in 13 months. This surplus as compared to the reference is expected to positively impact the QTA for March’25 to May’25.
Hydel generation increased by 2.3 percent YoY arriving at 3,187 GWh as compared to 3,114 GWh in same period last year.
Nuclear-based power generation declined by 21.0 percent. However, this decline was already incorporated in the reference generation, which was set at the beginning of FY25.
On the other hand, power generation from imported coal rose by 2.7x YoY, to compensate for lower generation from nuclear plant. The power generation from local coal also increased by 13.8 percent YoY to 1,518 GWh.
Moreover, solar also saw a major uptick, as the generation rose from 76GWh to 99GWh (up 30.3 percent).
The cost of power generation arrived at Rs 9.06/KWh during October 2024, while including transmission losses and previous adjustments, the fuel cost increased to Rs 9.26/KWh. This actual fuel cost of Rs 9.26/KWh is less than the reference fuel cost of Rs 10.28/Kwh that was forecasted at the start of the FY25. As a result of this, there is a projected fall of Rs 1.02/KWh in fuel charge adjustment which will be refunded to customers in the December 2024 bill.
“As per our calculation, the negative FCA is expected to reduce December 2024 CPI by 12bps”, Rao Aamir Ali, at Arif Habib Limited said.
The generation for the month of October 2024 was 0.7 percent higher than the reference generation, which was set at 10,187GWh.
The primary reason for the rise in actual generation from reference generation was higher actual demand, he said.
During the first four months of FY25, this took actual generation to 50,808 GWh, a fall of 9.0 percent compared to reference generation, a short fall of 5,116 GWh.
Copyright Business Recorder, 2024