Pakistan’s power generation has gone down by 11.2 percent to 28,203 GWh (18,954 MW) on a year-over-year (YoY) basis in the first two months of the fiscal year 2022-23 (2MFY23) against 31,758 GWh (21,343 MW) in 2MFY22.
According to data published by Arif Habib Ltd., in August 2022, the power generation declined by 12.6 percent on a YoY basis to 14,053 GWh (or 18,888 MW) against 16,078 GWh (or 21,610 MW) during August 2021.
The report highlights that the decline in power generation during August was due to lower generation from Regassified Liquefied Natural Gas (RLNG), Furnace Oil, Wind, Coal, and Hydel by 39, 37, 29, 6, and 4 percent on a YoY basis respectively. On the flip side, Solar and Nuclear-based power generation saw a major uptick as they increased by 10 and 15 percent on a YoY basis respectively. Bagasse-based generation also increased by 38 percent on a YoY basis.
The major contributors during the month were hydel (38 percent), coal (15 percent), nuclear (13 percent), RLNG (13 percent), and gas (9 percent). The share of furnace oil stood at just 7 percent.
Fuel Cost
In August 2022, the fuel cost for power generation surged by 57 percent on a YoY basis to Rs. 10.06/KWh against Rs.6.41/KWh during August 2021. However, the fuel cost declined by 6 percent on a month-over-month basis (MoM) basis. The MoM decline was due to the following reasons.
- Decrease in RLNG-based cost of generation by 13 percent on a MoM basis to Rs. 24.7/KWh (largely due to a 2.5 percent decline in RLNG prices on a MoM basis)
- Decrease in furnace oil-based cost of generation by 0.2 percent on a MoM basis to Rs. 35.6/KWh
- Decrease in nuclear-based cost of generation by 3 percent on a MoM basis to Rs. 1/KWh
However, during August, the cost of generation of hydel and solar-based power went up by 8 and 4 percent on a MoM basis respectively.
