The cost of power generation in Pakistan saw a massive jump of 23% in January 2024, while generation declined by 2% as compared to the same period of the previous year.
The cost in January stood at an average of Rs13.8/KWh compared with an average cost of Rs11.20/KWh in January 2023, an increase of 23% YoY, said brokerage house Topline Securities on Tuesday.
Data showed the increase was mainly due to a rise in the cost of power generation from gas and nuclear sources, which saw their cost increase by 43% and 24%, respectively, on a yearly basis. Additionally, the fuel cost for Furnace Oil (FO) rose by 22%, on a yearly basis, according to Topline’s data.
The increase comes as rising electricity bills have become a headache for the country’s populace, who are already feeling the pinch of high inflation and slow economic activity. On a monthly basis, the cost of power generation increased by nearly 34%, as compared to an average cost of Rs10.3 in December 2023.
Meanwhile, power generation in the country clocked in at 8,313 GWh (11,175 MW) in January 2024, over 2% lower compared to the same period last year. The year-on-year (YoY) decrease in power generation comes on the back of a decline in power generation from coal, which stood at 1,949 GWh during January 2024, down by 20% YoY, revealed Topline data.
Apart from nuclear, the YoY decrease was attributed to a decline in generation from gas (10%), and wind (55%). However, on a monthly basis, power generation increased by 9%, as compared to 7,626 GWh registered in December. During 7MFY24, power generation inched up slightly by 0.14% YoY to 77,200 GWh, compared to 77,086 GWh during 7MFY23. In January, coal was the leading source of power generation, accounting for 23.4% of the generation mix, to become the largest source of electricity generation in the country. Followed by nuclear, which accounted for 20.8% of the overall generation, followed by RLNG (re-gasified liquid natural gas) which accounted for 18.2% of the power generation share.
Among renewables, wind, bagasse and solar generation amounted to 1.5%, 1.3% and 0.6% of the generation mix.
