The cost of power generation in Pakistan saw a jump of 23% in January 2024, while generation declined by 2% as compared to the same period of the previous year.

The cost in January stood at an average of Rs13.8/KWh compared with an average cost of Rs11.20/KWh in January 2023, an increase of 23% YoY, said brokerage house Topline Securities on Tuesday.

Data showed the increase was mainly due to a rise in the cost of power generation from gas and nuclear sources, which saw their cost increase by 43% and 24%, respectively, on a yearly basis.

Additionally, the fuel cost for Furnace Oil (FO) rose by 22%, on a yearly basis, according to Topline’s data.

Pakistan’s power generation cost jumps nearly 20% in November

The increase comes as rising electricity bills have become a headache for the country’s populace, who are already feeling the pinch of high inflation and slow economic activity.

On a monthly basis, the cost of power generation increased by nearly 34%, as compared to an average cost of Rs10.3 in December 2023.

Meanwhile, power generation in the country clocked in at 8,313 GWh (11,175 MW) in January 2024, over 2% lower compared to the same period last year.

The year-on-year (YoY) decrease in power generation comes on the back of a decline in power generation from coal, which stood at 1,949 GWh during January 2024, down by 20% YoY, revealed Topline data.

Apart from nuclear, the YoY decrease was attributed to a decline in generation from gas (10%), and wind (55%).

However, on a monthly basis, power generation increased by 9%, as compared to 7,626 GWh registered in December.

During 7MFY24, power generation inched up slightly by 0.14% YoY to 77,200 GWh, compared to 77,086 GWh during 7MFY23.

In January, coal was the leading source of power generation, accounting for 23.4% of the generation mix, to become the largest source of electricity generation in the country. Followed by nuclear, which accounted for 20.8% of the overall generation, followed by RLNG (re-gasified liquid natural gas) which accounted for 18.2% of the power generation share.

Among renewables, wind, bagasse and solar generation amounted to 1.5%, 1.3% and 0.6% of the generation mix.

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Pakistani1 Feb 20, 2024 02:03pm
The news say "a rise in the cost of power generation from gas and nuclear sources, which saw their cost increase by 43% and 24%, respectively" Why the local coal is not being used?
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Adnan Feb 20, 2024 08:04pm
Lignite, the cleaning cost rises the overall cost of local coal. So imported coal is less expensive. However, ageements mandate Chinese companies to install machinery and gradually employ local coal.
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Eman Tariq Feb 22, 2024 06:02pm
Nice
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Eman Tariq Feb 22, 2024 06:03pm
Nice
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