Power generation plummets 17.4pc

KARACHI: The country’s power generation fell sharply by 17.4 per cent in August due to declines in hydel, wind, RLNG, and local sources.

The cost of power generation also significantly decreased during the month under review, driven by reductions in the costs of fuel oil and imported coal, according to power generation data released on Thursday.

Power generation declined by 17.4 per cent year-on-year, totalling 13,179GWh (17,714MW) in August 2024, compared to 15,959 GWh (21,450 MW) during the same month last year. Month-on-month, power generation experienced a dip of 11.4 per cent.

During the first two months of the current fiscal year, power generation fell by 8.9 per cent year-on-year, reaching 28,059 GWh (18,857 MW) compared to 30,798 GWh (20,697 MW) in the same period last year.

In August 2024, actual power generation was 13.1 per cent lower than the reference generation. “This decline in generation is expected to result in higher capacity charges for the second quarter of FY25’s quarterly tariff adjustment,” said Tahir Abbas, head of research at Arif Habib Limited.

Data indicated that hydel power generation dropped by around 11 per cent in August, while RLNG fell by 23 per cent. Local coal and gas saw declines of 21 per cent and 22 per cent, respectively. Wind power generation plummeted by 50 per cent, and generation from furnace oil declined almost entirely during August compared to the same month last year.

Despite the declines, hydel remained the leading source of power generation, contributing nearly 41 per cent of the country’s electricity. Nuclear power accounted for 16.6 per cent, while RLNG contributed 16 per cent. Local coal provided 10 per cent, and gas accounted for 7.2 per cent of electricity generation in August.

In terms of fuel costs, furnace oil represented 30 percent of the total fuel cost, followed by imported LNG and coal. Month-on-month, the fuel cost of power generation decreased by over 16 percent.

During the first two months of this fiscal year, the fuel cost of power generation saw a slight decline of 0.4 per cent. However, the cost of local coal increased by 61 per cent, while the cost of nuclear fuel rose by 27 per cent.