Power generation went up by 10.3 percent year on year (YoY) to 11,296 GWh (15,183 MW) during Oct’21, compared to 10,243 GWh (13,767 MW) during Oct’20.
This rise is due to higher generations from Nuclear, FO, and Wind, according to research published by Arif Habib Limited.
Major contributors during October 2021 were RLNG (24 percent), Hydel (23 percent), Coal (17 percent), Nuclear (12 percent), FO (11 percent), Gas (10 percent), Wind (1.6 percent), and Solar (0.5 percent). During the month, Nuclear, FO, Wind, Solar, and HSD-based power generation went up by 95 percent, 8.0x, 38 percent, 0.2 percent, and 8.7x YoY, respectively.
However, RLNG, Hydel, Coal, Gas, and Bagasse-based generation declined by 5 percent, 17 percent, 2 percent, 5 percent, and 68 percent YoY, respectively. During October 2021, fuel cost for power generation increased by 126 percent YoY to PKR 9.30/KWh mainly due to a rise in FO, coal, RLNG, and gas-based cost of generation. In addition, hydel-based generation also dipped by 17 percent YoY.
The rise in fuel cost by 126 percent YoY to PKR 9.30/KWh during Oct’21 was led by the following reasons:
In order to reduce the country’s reliance on fuel during winters, the National Electric Power Regulatory Authority (NEPRA) has approved a seasonal package to encourage electricity consumers to rely more on electricity rather than gas during the winter season. The reference period for the seasonal package will be November 2020 to February 2021, and power users who would consume more electricity than the reference period will be given a discount of Rs. 12.96 on incremental consumption after 300 units.
The winter package was formulated by the Ministry of Energy and submitted to NEPRA recently. It will be applicable countrywide from 1 November 2021 till 28 February 2022.