Power generation picks up 11.8 percent

KARACHI: Power generation in the country grew 11.8 percent to 120,539Gwh in the last fiscal year (FY2018) compared to 107,858 Gwh generated in the previous year, official data showed on Thursday.

Electricity generation increased 12.7 percent to 12,914Gwh during June 2018 over 11,458Gwh in June 2017. Hydroelectric generation turned out to the highest contributor following the induction of Neelum Jehlum and Terbela 4th extension in the system.

Both units have a combined generation capacity of 2,447MW. Moreover, share of coal-based power generation more than doubled to 11.8 percent compared to 5.7 percent in June last year, whereas the contribution of furnace oil (FO) based generation plunged to 9.0 percent from 22.3 percent in June last year.

However, on sequential basis FO-based generation went up 6.6 percent. The share of re-gasified liquid natural gas (RLNG) increased to 25.2 percent in June 2018 compared to 12.3 percent in June last.

Rao Aamir at Arif Habib Limited said this rise was due to a higher generation from newly installed RLNG-fired plants. “The newly inducted plants witnessed a sequential growth of 15 percent to 1,677GWh, which translates into a load factor of 62.4 percent,” Aamir said.

The analyst added that Quaid-e-Azam Thermal Power operated at 80 percent load factor, Haveli Bahadur Shah at 81 percent and Baloki at 30 percent. Hub plant saw major decline as its generation dipped 53 percent to 237GWh at 26 percent load factor in June.

On the other hand, generation at Nishat Chunian Power (NCPL) took a hit of 36 percent, while KAPCO, Nishat Power (NPL), and Hub Narowal plant, faced a downfall of of 7.6 percent, 2.5 percent, and 0.9 percent, respectively.

The official statistics also revealed that average fuel cost of generation in June 2018 mounted 15.5 percent to Rs5.12/KWh in contrast to Rs4.44/KWh in June 2017. Aamir said the increase in fuel cost was due to a 38.2 percent, 10.6 percent, and 24.9 percent rise in FO, gas, and RLNG-based cost of generation, respectively. "However, on a sequential basis the cost of generation declined 18.2 percent owing to a rise in hydroelectric based generation," the analyst observed.