Power generation in Pakistan reached 10,262 GWh (13,793 MWh) in October 2024, representing a 7% year-on-year increase compared to October 2023, which saw 9,572 GWh.
However, on a monthly basis, electricity generation fell by 17.8% from 12,487 gigawatt hours (17,343 MW) in September 2024.
In the first four months of fiscal year 2025 (July-October), power generation fell by 5% year-on-year, reaching a total of 50,808 GWh compared to 53,709 GWh in the same period last year. Analysts have raised concerns about declining electricity consumption, driven by slowing economic growth and rising energy costs. Moreover, the increasing shift to alternative energy sources, especially solar energy, is impacting the national grid and the energy sector.
It is worth noting that actual generation exceeded reference generation by 0.7% for the first time in 13 months, Arif Habib Limited noted. The generation cost in October 2024 was Rs 9.26 per kWh, Rs 1.02 lower than the expected cost, resulting in a negative fuel charge adjustment (FCA).
However, the total cost of electricity generation rose by 10%, reaching Rs 9.06 per kWh in October 2024, compared to Rs 8.26 per kWh in the same period last year. This increase was mainly due to higher imported coal costs, which rose by over 27% to Rs 16.91 per kWh compared to Rs 13.27 per kWh in the previous year.
Hydropower led the generation mix with a 31.1% share, followed by LNG at 19.5% and domestic coal at 14.8%. Among renewable energy sources, wind, solar, and bagasse contributed 1.9%, 1%, and 0.5%, respectively. The decline in nuclear power generation by 21% year-on-year and increasing reliance on expensive imported coal were the main factors in the rise in the cost of power generation.