Power generation rises by 7pc in Oct YoY

KARACHI: Power generation in Pakistan increased by 7.0 per cent in October this financial year, driven largely by a rise in coal-based generation. However, the cost of electricity generation also rose by 10 per cent due to higher costs associated with coal and nuclear power.

According to power data released on Monday, total electricity generation in October 2024 reached 10,262GWh, compared to 9,572GWh in the same month last year. On a month-to-month basis, power generation declined by 17.8 per cent, falling from 12,487GWh in September 2024.

In the first four months of the current financial year, power generation decreased by 5.0 per cent year-on-year (YoY), totalling 50,808GWh compared to 53,709GWh in the same period last year.

For the first time in 13 months, actual generation exceeded the reference generation by 0.7 per cent, noted Tahir Abbad, Head of Research at Arif Habib Limited. “The generation cost was Rs1.02/KWh lower than the actual cost of Rs 9.26/KWh (including transmission losses), resulting in a negative fuel cost adjustment (FCA),” he added.

The overall cost of power generation, which has continued to burden electricity consumers in the country, rose by 10 per cent in October 2024. The cost of generating electricity increased to Rs9.06/KWh, up from Rs8.26/KWh during the same period last year.

The breakdown of fuel sources for power generation showed that the rise in costs was mainly attributed to imported coal, whose cost increased by more than 27 per cent, reaching Rs16.91/KWh, compared to Rs13.27/KWh in October 2023. The cost of electricity generated from gas also increased by 5.0 per cent in October, while nuclear-based power saw a 23 per cent rise in costs.

During the July-October period of this fiscal year, the cost of electricity generation rose by 5.0 per cent due to the high cost of local coal and nuclear energy.

Data also revealed that hydel power remained the leading source of electricity generation in October, accounting for 31.1 per cent of the total generation mix. It was followed by RLNG (19.5 per cent) and local coal (14.8 per cent). Wind, solar, and bagasse generation contributed 1.9 per cent, 1.0 per cent, and 0.5 per cent, respectively. Over the first four months of the year, hydel power continued to lead, contributing nearly 40 per cent of the total power generation.