Pakistan power generation up by 1% in December

Pakistan's electric power generation witnessed a 1% increase in December, reaching 7,801 gigawatt-hours (GWh) compared with same month last year, according to data shared by the National Electric Power Regulatory Authority (NEPRA).

Analysts say electricity demand has remained subdued due to record-high tariffs and a general decline in industrial activity affecting both domestic and manufacturing sectors.

December saw a typical seasonal decline in power generation compared to recent months as winter weather reduced demand.

Overall, the first half of the current fiscal year recorded a 3% decline in power generation, totaling 66,642 GWh, attributed to a continued slowdown in economic activity and elevated power tariffs.

During December, the main sources of power generation were nuclear (26%), liquefied natural gas (LNG) (21%), and hydropower (23%).

Notably, the share of regasified liquefied natural gas (RLNG) in the power mix increased by 10 percentage points to 21%. The average cost of power generation for the month stood at PKR 9.4 per kilowatt-hour (kWh), marking a 15% decline.

This cost reduction is largely due to a decrease in the use of expensive fuel sources and lower coal and gas generation costs.

The government's move away from furnace oil, previously the most expensive source of power generation, is apparent as it now constitutes 0% of the energy mix.

Additionally, renewable energy sources such as wind (3.4%), solar (1.0%), and bagasse (1.3%) made up a small but significant portion of the overall power generation in December.

Looking ahead, analysts predict a rebound in power generation in the latter part of fiscal year 2025 as economic conditions improve.