Power generation slides in FY2020

By our correspondent

KARACHI: Power generation fell one percent to 121,867 gigawatt hours (23,618MW) during the last fiscal year of 2019/20 as months long lockdown upended activities in the already-ailing economy, a brokerage analyst said on Thursday.

Power generation dropped from 122,708 GWh (23,781MW) in FY2019. The decline was due to overall slow economic activities during the year and the impact of COVID-19-related lockdowns and restrictions during March-May this year, said Sunny Kumar, an analyst at Topline Research.

Hydropower contributed 32 percent in the power mix during the last fiscal year compared to 26 percent a year earlier. Coal share was 21 percent compared to 13 percent. Gas contribution was 12 percent as opposed to 18 percent. Furnace oil based generation dropped to three percent of total power compared to seven percent. Share of re-gasified liquefied natural gas (RLNG) stood at 20 percent, followed by nuclear and wind-based generation clocking in at 8 and 2 percent, respectively.

Kumar said coal power generation increased due to the commencement of China Hub Power Generation (1,220MW) and Engro Powergen Thar (660MW), while hydropower generation increased due to improved availability of water amidst higher water availability during the year.

The demand for furnace oil and gas-based power fell due to their higher cost of producing power, which resulted in their respective decline in merit order list.

The installed power generation capacity in the country touched 34,157MW in June this year compared to 30,590MW in June a year earlier.

Power generation started to decline in March, down nine percent year-on year to 6,911 GWh largely due to lockdowns.

A similar trend was also witnessed in April and May as power generation declined 14 percent and 5 percent year-on-year, respectively.