Pakistan's Power Generation Declines in March 2024

In March 2024, power generation in Pakistan recorded a total of 8,023 GWh (10,784 MW), marking an 8.2% decrease compared to the same period in the previous year when it stood at 8,741 GWh (11,749 MW). The decline was primarily attributed to lower output from Re-gasified Liquid Natural Gas (RLNG) by 7.1%, coal by 18.8%, and gas by 28.2%. However, on a monthly basis, power generation saw a 12.5% increase from February, with improved generation from hydel, nuclear, and RLNG.

Despite the monthly increase, the year-on-year (YoY) power generation for the period of July to March 2023 went down by 1.2% to 92,450 GWh compared to the same period in the previous year. This decrease was mainly due to lower generation from nuclear and gas sources. The decline in power generation during March 2024 is expected to lead to higher capacity charges for the quarterly tariff adjustment in the fourth quarter of the fiscal year.

Furthermore, the total cost of generating electricity in Pakistan slightly increased by 1.1% in March 2024, reaching Rs8.31 per KWh compared to Rs8.22 per KWh in the previous year. The rise in cost was driven by the significant increase in power generation cost from local coal, which surged to Rs16.78 per KWh, a substantial jump from Rs7.9 per KWh in the same period last year.

Hydel emerged as the primary source of power generation in March 2024, constituting 27.6% of the total generation mix, followed by nuclear at 25.8% and RLNG at 20.7%. Wind, solar, and bagasse collectively contributed 5% to the overall power generation mix.

In conclusion, while Pakistan experienced a decline in power generation in March 2024, efforts to enhance generation from renewable sources and address cost challenges remain crucial for the country's energy sector.