Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
April 23, 2019

Power generation rises to 87,232GWh in 9 months


April 23, 2019

KARACHI: Power generation slightly rose two percent to 87,232 gigawatt hours (GWh) in the first nine months of the current fiscal year of 2018/19 as RLNG- and coal-based electricity production increased during the period, brokerages reported on Monday.

Pearl Securities said regasified natural gas- (RLNG) and coal-based power generation increased 87 and 57 percent, respectively, in the July-March FY2019. In July-March, their cumulative share in the country’s power mix rose to 34 percent from 20 percent in the corresponding period a year earlier.

RFO emerged as the single most expensive source of power generation in 9MFY2019, averaging at Rs14.11/kilowatt-hour (kWh), up 44 percent year-on-year. Hydropower generation grew eight percent in the nine months period.

In March, power generation fell 13 percent year-on-year to 7,621 GWh, but it rose 14 percent month-on-month. “Lower power generation during the month was primarily due to decline in RFO (residual fuel oil) and RLNG-based generation, which plummeted 97 percent and 16 percent year-on-year to 40GWh and 1,784GWh, respectively in March,” Pearl Securities said in a report.

In March, RFO-based generation declined 97 percent year-on-year to 40GWh owing to change in government’s policy towards other sources – coal and RLNG – which are relatively cheaper and more efficient than furnace oil-based independent power producers.

“However, FO-based generation could see improvement in the coming months, with the government’s recent decision to allow import of FO to meet base-load demand,” analyst Ali Zaidi at JS Global Capital said. In March, coal-based power generation decreased 15 percent year-on-year to 1,069GWh. Hydropower generation increased 84 percent year-on-year and five percent month-on-month to 1,601GWh in March as heavy rainfall across the country restored water level in the reservoirs.

While overall cost of generation in March was down 19 percent year-on-year to Rs5/kWh, it marginally increased by two percent from the previous month. RFO was among the most expensive fuel sources at Rs11.36/kWh. Coal-based generation costs 6.97/kWh in March. Despite a 21 percent increase, gas was among the more economical sources in March at a cost of Rs5.76/kWh. Each kWh generated using RLNG cost Rs9.85, reflecting an 11 percent increase year-on-year.

In March, share of hydropower increased to 21 percent, up 11 percentage points year-on-year, while that of gas rose three percentage points to 24 percent. RFO’s share plunged to a meagre one percent, whereas share of RLNG and coal remained almost stagnant at 23 percent and 14 percent, respectively.

Analysts expect power generation from RFO-based plants to depict slender increase as petroleum division recently sought approval for import of 350,000 tons of furnace oil to meet higher demand in the upcoming months. RLNG-based generation is also expected to increase due to rise in LNG imports. RFO-based generation will continue to dwindle in the long run, as new LNG/coal-based power plants become operational and hydropower generation increased owing to government’s focus on improvement/addition of water reservoirs.

Topstory minus plus

Opinion minus plus

Newspost minus plus

Editorial minus plus

National minus plus

World minus plus

Sports minus plus

Business minus plus

Karachi minus plus

Lahore minus plus

Islamabad minus plus

Peshawar minus plus