The cost of power generation in Pakistan experienced a significant increase of almost 20 percent in November 2023, reaching an average of Rs7.17/KWh compared to Rs5.99/KWh in the same period the previous year, marking a YoY increase of 19.7 percent, as reported by brokerage house Arif Habib Limited (AHL).
AHL noted that the yearly rise in fuel costs was primarily due to a decrease in nuclear, wind, and solar-based generation. Furthermore, the fuel cost for local coal-based generation saw a 55 percent YoY increase, while Regasified Liquid Natural Gas (RLNG) and gas-based fuel costs rose by 17 percent and 38 percent YoY, respectively.
Despite the monthly cost of power generation decreasing by 13.2 percent, compared to October’s average cost of Rs8.26, the mounting electricity bills pose a challenge for the populace already grappling with high inflation and sluggish economic activity.
In terms of power generation, November 2023 recorded 7,547 GWh (10,482 MW), a 9.8 percent decline compared to the same period in the previous year, when power generation stood at 8,367 GWh.
The YoY decrease in power generation was attributed to a decline in nuclear generation by 32.8 percent, along with reductions in RLNG (21.1pc), gas (41.5pc), and wind (6.2pc).
Hydel emerged as the leading source of power generation in November, constituting 36.5 percent of the generation mix, followed by nuclear at 20.8 percent, and local coal at 13.1 percent. Among renewables, wind, solar, and bagasse contributed 2 percent, 0.7 percent, and 0.4 percent to the overall power generation share. During the first five months of FY24, power generation increased by 1.8 percent YoY, totaling 61,258 GWh.
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