Thursday December 08, 2022

Power generation drops as country cuts corners on costly fuels

October 18, 2022

KARACHI: Pakistan’s power generation as well as its cost decreased during the month of September this financial year due to decline in generation from expensive fuel.

Data showed that power generation went down by 8.2 percent to 12,878 GWh (17,886MW) during the month of September 2022 compared to 14,032 GWh (19,489MW) during the corresponding month of the last financial year.

On the other hand, on month-on-month (MoM) basis, power generation also decreased by 8.4 percent. In the first quarter of the current financial year, power generation also decreased by 10.3 percent year-on-year to 41,081 GWh (18,606MW) compared to 45,790 GWh (20,738MW) during the same period in the last financial year.

The hydel power generation declined by 13.4 percent in September compared to last fiscal, while during the quarter under review, hydropower generation decreased by 4.2 percent. Electricity generation from RLNG declined by 31.3 percent in the month under review, whereas it decreased 34.4 percent in the three-month period ended September 30.

Similarly, coal-based power generation also declined 39.4 percent in September this fiscal. In Q1, it dropped by 23.4 percent. Data showed an increase in the share of nuclear power generation that went up 76.7 percent in September and 34.5 percent in the quarter ended September 30.

Among renewables, wind power generation increased by 102 percent in September 2022, and went up by 3.4 percent in Q1 of this fiscal. Solar power generation was up 34.5 percent in September, whereas it increased by 19.2 percent in the quarter under review.

During the month of September 2020, the cost of power generation was down by 1.5 percent MoM and during September 2022, fuel cost for power generation decreased by 1.5 percent MoM to an average of Rs9.91/KWh compared with an average cost of Rs10.06/KWh during month of August 2022. On a YoY basis, it was up by 46 percent.

On a MoM basis, the decrease in fuel cost was witnessed mainly due to a rise in wind and solar based generation and in addition to this, coal and FO-based costs of generation declined by 12 percent MoM and 3 percent MoM, respectively.

The share of hydel in power generation was 34 percent in September of this fiscal compared to 36 percent in the same month of last fiscal. RLNG share rose to 17 percent in September compared to 9 percent in the same month last fiscal.

Power generation declined to 14 percent this September compared to 19 percent in the same month of last fiscal. Share of wind and solar increased in September 2022 against the same month last fiscal.