Power generation dips 2pc in FY24

KARACHI: Power generation in the country fell by almost 2.0 per cent during the financial year ended on June 30, 2024, which also saw the cost of electricity generation decreasing by 6.0 per cent.

According to official data, power generation stood at 127,165GWh or 170,909MW compared to the 129,591GWh or 174,170 MW produced during the previous fiscal. Power generation in the country clocked in at 13,460GWh or 8,090MW in June 2024, recording a decrease of 1.9 per cent YoY as compared to the same period last year when power generation stood at 13,715GWh or 18,433MW. On a month-on-month (MoM) basis, power generation increased by 6.7 per cent as compared to 12,617 GWh registered in May of the last financial year.

Tahir Abbas, head of research at Arif Habib Limited, attributed the monthly increase to improved generation from hydel (21.1 per cent) and coal (imported) (66.3 per cent). The decline in power generation in June of FY2024 against the same month of FY2023 has been attributed to coal (imported) (-41.1 per cent) and RLNG (-4.2 per cent).

During FY24, hydel power generation was up 10 per cent; RLNG 7.1 per cent; coal (local) 55.1 per cent whereas power generation from imported coal was down by 54 per cent and RFO 51 per cent.

The cost of power generation in the country decreased significantly by nearly 11 per cent, coming to Rs8.61KWh in June 2024 compared to Rs9.63KWh registered in the same period of the previous year.

Tahir Abbas attributed this decrease in cost to the decline in power generation cost from imported coal, which declined to Rs15.53 KWh, a fall of nearly 29 per cent, as compared to the previous price of Rs21.79 KWh.

On an MoM basis, the power generation cost decreased by 1.5 per cent on the back of the cost of electricity generation from imported and local coal. During the financial year under review, the cost of power generation also decreased by 6.0 per cent on the back of a decline in the cost of power generation from imported coal (-14.8 per cent).

In June 2024, hydel emerged as the leading source of power generation, accounting for 35.1 per cent of the generation mix, followed by RLNG, which accounted for 18.1 per cent of the overall generation; nuclear accounted for 14.8 per cent of the power generation share.

Among renewables, wind, solar and bagasse generation amounted to 3.8 per cent, 0.9 per cent and 0.4 per cent, respectively of the generation mix.