Significant Increase in Power Output
In May 2024, Pakistan’s power generation reached 12,617 GWh (16,958 MW), marking a 2.7% increase year-over-year (YoY) compared to May 2023’s 12,284 GWh (16,510 MW). On a monthly basis, there was a substantial 46% rise from April’s generation of 8,639 GWh. This surge was largely due to significant improvements in hydel power, which rose by 88.7%, and imported coal, which saw an increase of 1,723.8%.
Year-to-Date Decline in Power Generation
However, for the 11-month period from July 2023 to May 2024 (11MFY24), there was a 1.9% decline in power generation to 113,705 GWh, down from 115,876 GWh in the same period the previous year. This decrease was primarily driven by reduced output from nuclear sources (4.7%) and natural gas (22.8%).
May’s Generation Below Expected Levels
Arif Habib Limited (AHL), a brokerage firm, noted that actual power generation in May 2024 was 11.3% lower than the projected reference generation. This shortfall is expected to result in increased capacity charges for the second quarter of fiscal year 2025 (2QFY25).
Cost of Power Generation Falls
The cost of generating electricity in Pakistan saw a notable decline, decreasing by 10% to Rs8.74 per kWh in May 2024 from Rs9.72 per kWh in May 2023. This reduction in cost was primarily due to a decrease in the cost of power generation from regasified liquefied natural gas (RLNG), which fell nearly 2% to Rs24.01 per kWh from Rs24.46 per kWh in the same period the previous year.
Hydel Power Dominates Generation Mix
In May, hydel power emerged as the primary source of electricity, constituting 31% of the overall generation mix. RLNG followed closely, contributing 21.8%, while nuclear power made up 18.7%. Among renewable energy sources, wind, solar, and bagasse contributed 3.5%, 1%, and 0.5% respectively, to the power generation mix.
