Power Generation Hits Highest December Level Since 2021

Pakistan’s power generation rose to 8,487 GWh in December 2025, marking the second-highest December generation on record and the highest since December 2021, according to data compiled by Arif Habib Limited (AHL) from NEPRA.

The December output was up 8.8 percent year-on-year, exceeding NEPRA’s reference level of 7,965 GWh, reflecting stronger grid demand and a higher contribution from thermal and nuclear sources.

Total power generation during the first half of FY26 reached 67,356 GWh, posting a 1.1 percent year-on-year increase compared to the same period last year, indicating broadly stable electricity demand despite ongoing efficiency and conservation measures.

Hydel generation declined sharply on a monthly basis due to seasonal factors, falling to 1,534 GWh from 3,153 GWh in November, reducing its share in the overall energy mix to 18.1 percent. This decline was partially offset by a sharp rise in coal-based and nuclear generation.

Imported coal generation surged to 860 GWh, more than five times higher than last year, while local coal output increased 51 percent year-on-year to 1,187 GWh.

Nuclear power remained the single largest contributor, generating 2,126 GWh, accounting for 25.1 percent of total power generation.

RLNG-based generation stood at 1,464 GWh, down 9 percent year-on-year, while gas-based generation remained broadly flat at 951 GWh. Wind and solar generation together contributed just under 3 percent of total output, reflecting limited seasonal availability.

The average fuel cost of power generation rose to PKR 9.16 per unit, up 1 percent year-on-year, mainly due to a higher thermal generation mix following the decline in hydel output. Month-on-month, fuel cost jumped sharply as hydropower receded.

Despite the increase in fuel cost, the higher generation and mix adjustment resulted in a positive Fuel Cost Adjustment (FCA) of PKR 0.48 per unit, ending three consecutive months of negative FCA, analysts noted.