Power consumption declines despite surge in generation capacity

ISLAMABAD: Though Pakistan’s total installed electricity generation capacity has increased by 1.6 percent to 46,605 MW, during July-March FY2025 compared to 45,888 MW recorded in the corresponding period of FY2024, the electricity consumption has reduced by 3.6 percent in the first nine months of ongoing fiscal to 80,111 GWh, compared to 83,109 GWh in the corresponding period of FY2024, says the Economic Survey 2024-25.

The increase can be attributed to the installed capacity of 2,813 MW from net metering. However, the government terminated Power Independent Power Producers (IPPs), notably HUB Power, Lalpir Power, Pakgen Power, Roush Power, Saba Power, and Atlas Power, with effect from October 1, 2024. The percentage shares of hydel, nuclear, renewable, and thermal are 24.4 percent, 7.8 percent, 12.2 percent, and 55.7 percent, respectively.

According to Economic Survey 2024-25, the share of thermal power as a dominant source of electricity supply has declined over the past few years, showing an increased reliance on indigenous sources. Out of the total electricity generation of 90,145 GWh, the share of hydel, nuclear, and renewable stands at 53.7 percent.

This shift marks a positive development of the economy, as the energy mix transitions away from thermal generation towards more sustainable and environmentally friendly alternatives. The household sector continued to dominate electricity consumption, with its share rising to 49.6 percent (39,728 GWh) during July-March FY 2025, up from 47.3 percent (39,286 GWh) in the same period of FY2024. This increase indicates a relative expansion in residential demand, possibly driven by population growth, an increased use of home appliances, and stable buildings, consumed 7,037 GWh, maintaining a stable share at 9.8 percent, broadly consistent with the previous year.

During July-March FY 2025, total electricity consumption in Pakistan stood at 80,111 GWh, compared to 83,109 GWh in the corresponding period of FY2024, reflecting a 3.6 percent decline in electricity usage. This contraction may be attributed to ongoing energy conservation measures, elevated power tariffs, off-grid solar solutions, and subdued industrial weather-related consumption patterns.

In contrast, industrial consumption slightly declined both in absolute terms and share. The sector consumed 21,082 GWh, down from 22,031 GWh, reducing its share from 26.5 percent to 26.3 percent. Electricity usage in the agriculture sector dropped significantly by 34.3 percent, falling from 6,951 GWh to 4,566 GWh, which reduced its share from 8.4 percent to 5.7 percent.