Pakistan’s power generation increases in November as cost inches up

Updated 18 Dec, 2024

Power generation in Pakistan clocked in at 8,032 GWh (11,156 MW) in November 2024, an increase of over 6% YoY compared to the same period of the previous year, suggesting an uptick in economic activity.

Back in November 2023, power generation stood at 7,547 GWh.

On a monthly basis, power generation declined by 21.7% as compared to 10,262 GWh (13,793 MW) in October.

In the first five months of FY25 (July-November), power generation fell by 3.9% YoY to 58,840 GWh compared to 61,256 GWh in the SPLY.

Analysts have voiced concerns over Pakistan’s decline in electricity consumption, which is accompanied by sluggish economic activity and high energy costs.

Adding to the challenge is a growing shift towards alternative energy sources, especially solar, which has become increasingly popular among residential and commercial sectors.

This rising trend has left decision-makers grappling with its implications for the national grid and energy sector, especially after provincial governments announced plans to distribute panels to low-income consumers free of cost or at a very low price.

Meanwhile, power generation surpassed the reference level for the second consecutive month, noted Arif Habib Limited.

On the other hand, the total cost of generating electricity in Pakistan increased by 2%, clocking in at Rs7.29 KWh in November 2024 compared to Rs7.17 KWh registered in the same period of the previous year.

The increase in cost is attributed to the rise in power generation cost from nuclear, which increased to Rs1.73 KWh, a gain of 43%, compared to Rs1.21 KWh in SPLY.

“After adjusting for transmission losses and PYA, the effective fuel cost stands at Rs7.23/KWh compared to the reference rate of Rs7.86/KWh, resulting in a negative FCA of Re0.63/KWh for the month,” said AHL.

In November, hydel emerged as the leading source of power generation, accounting for 35.6% of the generation mix, to become the largest source of electricity generation.

This was followed by nuclear, which accounted for 20.6% of the overall generation, ahead of coal (local), which accounted for 12.7% of the power generation share.

Among renewables, wind, solar and bagasse generation amounted to 1.2%, 0.9% and 0.6%, respectively, of the generation mix.

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