LAHORE: Power generation in Pakistan has declined by 1% YoY to 121,867 GWh (23,618 MW) during FY20 as compared to 122,708 GWh (23,781 MW) in FY19 due to overall slow economic activity during the year and the impact of COVID-19 related lockdowns and restrictions during Mar-May 2020.
According to sources, power mix during FY20 moved in favour of Hydel (32% in FY20 vs. 26% in FY19) and Coal (21% in FY20 vs. 13% in FY19), replacing gas (12% in FY20 vs. 18% in FY19) and furnace oil based generation (3% in FY20 vs. 7% in FY19). The RLNG contributed 20% to the overall power mix, with nuclear and wind-based generation clocking in at 8% and 2%, respectively, during the year.
They said the coal power generation has increased due to the commencement of China Hub Power Generation (1,220 MW) and Engro Powergen Thar (660 MW), while Hydel power generation increased due to improved availability of water amidst higher water availability during the year.
Similarly, the demand for the furnace oil and gas-based power fell due to their higher cost of producing power, which resulted in their respective decline in the merit order list.
The sources said the installed capacity in the country touched 34,157MW in Jun-2020 compared to 30,590 MW in Jun-2019. They said power generation had started to decline in Mar-2020 (down by 9% YoY to 6,911 GWh from 7,621 GWh in Mar-2019) largely due to COVID-19 related lockdowns and restrictions.
A similar trend was also witnessed in Apr-2020 and May-2020 as power generation declined by 14% YoY and 5% YoY, respectively. However, encouragingly power generation has picked up, though up 1% YoY, it is almost doubled (+92%) from the low recorded in Mar-2020. With industries opening up post-COVID-19 lockdown and subsequent pick-up in economic activity, the sources pointed out that demand for power is likely to increase from here forth. They said the average fuel cost was down by 3% YoY to Rs 5.97/KWh in FY20 compared to Rs6.13/KWh in FY19. This is mainly due to an increase in Hydel-based generation by 20% YoY (no fuel cost) and an increase in coal-based power generation at a lower cost of Rs6.1/Kwh, the sources said.
Copyright Business Recorder, 2020
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