Electricity generation dips 4% in February as economic slowdown continues

Electricity generation in the country registered a 4% year-on-year decline, hitting 11,541 MW during February 2023, compared to 12,036 MW generated in February 2022.

The decline in the generation was owed to lower generation from furnace oil, which was down 80% YoY, as well as coal (-57% YoY), wind (-44% YoY), and gas (-7% YoY).

“This decline in power generation is triggered by the overall decline in economic activity across the country,” said Arif Habib Limited (AHL) in a report on Wednesday.

“China Power Hub Generation and Thar Energy Limited generated zero electricity during February 2023 due to the coal import issues and transmission constraints on the back of the delay in the second transmission line between Thar and Matiari Converter Station,” the brokerage house said.

During 8MFY23, power generation also decreased by 7.1% YoY to 84,840 GWh, compared to 91,281 GWh during 8MFY22.

Pakistan’s power generation cost up 59% in January

Meanwhile, the cost of power generation decreased by 10.3% YoY in February 2023, clocking it an average of Rs8.01/KWh compared with an average cost of Rs8.94/KWh during February 2022.

The decline was led by reasons including an increase in hydel and nuclear-based power generation, a relatively cheaper source of generation and a decline in FO-based electricity generation.

Power generation from hydel and nuclear sources stood at 2,052 GWh and 1,883 GWh respectively, showing an increase of 39% and 86%, respectively, on a yearly basis.

In February, hydel was the leading source of power generation, accounting for 26.5% of the generation mix, to become the largest source of electricity generation in the country. Followed by nuclear, which accounted for 24.3% of the overall generation.

Moreover, electricity generation from wind sources declined by 44% on a yearly basis to 92 GWh, while power generation from other renewable sources such as solar also witnessed a 42% increase on a yearly basis at 82 GWh.