Power generation up 10pc in Aug

KARACHI: The electricity generation in August 2018 surged 10 percent to 14,017Gwh as compared to 12,754Gwh during the same month last year, as RLNG and coal-based plants along with higher hydropower led to the overall improvement in the generation capacity of the country.

As per the official data, coal-based power generation increased substantially to 1,344Gwh in August 2018 as compared to only 405Gwh last year.

Analyst Bilal Farooq from Pearl Securities said, “Port Qasim and Sahiwal plants, which started commercial operation in FY18, contributed 3,081Gwh to the national

grid during July and August 2018 at an average cost of Rs6.23/Kwh, lowest among other thermal sources of power generation.”

RLNG-based generation also increased to 3,187Gwh after all three plants in Punjab including Haveli Bahadur Shah, Bhikki, and Balloki with cumulative 3,730MW capacity commenced operations.

They added around 6,558Gwh during two months at an average rate of Rs10.05/Kwh, the data revealed. Share of furnace oil-based generation decreased to 1,644Gwh in August, as compared to 3,123Gwh last year in the same month.

While, overall contribution to the power mix also reduced to 12 percent in August from

24 percent last year.

Hydropower generation was recorded at 4,478Gwh in August as compared to 4,143Gwh in the same month last year.

“The Tarbela 4th extension and Neelum-Jhelum project coupled with a better water supply situation during July-September resulted in better generation from hydro sources,” Farooq added. The total average generation cost, as per Nepra, grew 24 percent during August 18 to Rs5.55/Kwh as compared to Rs4.49/Kwh last year.

“The power generation cost/Kwh has registered an upward trend for all major sources, but the major increase was witnessed in furnace oil and coal. The furnace oil cost/Kwh escalated by Rs5.07/Kwh to Rs14.47/Kwh while coal cost/Kwh increased by Rs2.13/Kwh to Rs6.42/Kwh,” a report issued by Pearl Securities noted. Going forward, RLNG and coal-based plants which are cheap and efficient will continue to dominate the overall power generation mix.

Analysts expect power generation from furnace oil to pick up in coming months as hydropower generation drops during the winter season, which will skew the mix towards furnace oil.