· Power generation has clocked in at 8,417GWh for the month of Dec’22, remaining flat MoM while decreasing by 4.5%YoY compared to 8,815GWh generated last year. Circular debt for the power sector has crossed PkR2.5tn compared to PKR2.25tn in June.
· The significant increases in power generation have been seen from Coal fired power plants, with generation up 56%MoM. Furthermore, Nuclear plants have sustained their levels of generation, while the natural course of hydrology in winters has led to a 31%MoM decrease in generation from the Hydel source.
· Average cost of generation for the month has risen by 18% to PkR7.0/kWh owing to the decrease in generation from Hydel plants. In terms of the generation mix for 1HFY23, the largest contributors are Hydel, Nuclear, RLNG, Coal and Gas, contributing 32%/19%/14%/14%/11% to the mix.
· HUBC has seen significant decline in operations, cumulating to 94% less power purchased compared to last December while down 29%MoM. The CPHGC remains barely used with its low position in the Merit Order as the plant relies solely on the expensive imported coal. Meanwhile, the base plant remains non-operational for the last 3 months, although that is bound to increase profitability for the inefficient plant.
Courtesy- AKD Research