Power generation falls on lower demand

KARACHI: The country’s power generation dipped 2.0 per cent to 8,152 GWh (10,957 MW) in the month of January this fiscal year compared to the same month during the last fiscal, when power generation stood at 8,314 GWh (11,175 MW).

Power generation data released on Thursday indicates that power generation improved by 4.5 per cent as compared to the previous month of this fiscal. Analysts attributed the low power generation in the country during the month of January to its low demand.

In the first seven months of the current fiscal year, power generation fell by 3.2 per cent YoY to 74,794 GWh compared to 77,296 GWh in the same period during the previous fiscal year. Tahir Abbas, head of research at Arif Habib Limited attributed the reduction in generation to decreased overall demand amid drop in temperatures and increased solarisation.

He said that there is a growing shift towards alternative energy sources, especially solar, which has become increasingly popular among residential and commercial sectors. He pointed out that power generation remained 4 per cent lower than the reference generation for the month.

Nuclear power generation topped in the total generation as it contributed 26 per cent in the month of January, followed by RLNG-based power generation. RLNG, which accounted for 19 per cent of the overall generation, ahead of coal (local), which accounted for 16 per cent of the power generation share. The hydel power generation fell 6.0 per cent in the month of January due to the low inflow of water in the dams of the country and a subsequent drop in the discharge from them, a consequence of the long dry spell for the last three months.

Among renewables, wind, solar and bagasse generation amounted to 3.0 per cent, 1.0 per cent and 1.0 per cent, respectively, of the generation mix. According to the power generation, the total cost of generating electricity in Pakistan decreased by 22 per cent, clocking in at Rs10.79 KWh in January 2025 compared to Rs13.79 KWh registered in the same period of the previous year.

Analysts attributed the decline in cost to an increase in generation from nuclear, a relatively cheap energy source. The power generation cost from furnace oil plunged by 14 per cent during the month of January whereas RLNG power generation costs witnessed an 8.0 per cent drop. Power generation from gas was down by 4.0 per cent. However, nuclear power generation was up by 37 per cent during the month under review.

Nuclear power contributed 26.5 per cent in overall energy generation followed by 18.9 per cent by RLNG power. Local coal contributed 15.6 per cent in the overall power generation.