Power generation went down by 5% YoY to 8,417 GWh (11,313 MW) during Dec’22, compared to 8,827 GWh (11,865 MW) during Dec’21. The decline in the generation was owed to lower generations from FO (-89% YoY), Coal (-28% YoY), and Hydel (-3% YoY). This decline in power generation is triggered by the overall decline in economic activity across the country.
Major contributors during Dec’22 were Nuclear (share: 27%), Hydel (share: 20%), Coal (share: 18%), Gas (share: 15%), RLNG (share: 14%), Wind (share: 3%), Bagasse (share: 1%), Solar (share: 0.8%), and FO (share: 0.5%).
Nuclear and Solar-based power generation increased by 48% and 54% YoY, respectively. The rise in Nuclear-based generation is witnessed due to the addition of KANUPP-3 to the system. The decline in Hydel-based generation was due to a 4% YoY decline from WAPDA and zero generation from Tarbela 4th extension. This decline in Hydel-based generation was despite the addition of Karot Hydro Power to the system as drag came from the unavailability of Neelam Jhelum during the period due to a technical fault, nullifying Karot Hydro Power’s contribution to the overall generation.
Fuel cost down by 14.5% YoY during Dec’22
During Dec’22, fuel cost for power generation decreased by 14.5% YoY to an average of PKR 7.04/KWh compared with an average cost of PKR 8.24/KWh during Dec’21. A YoY decline during Dec’22 was led by the following reasons;
o Nuclear-based power generation increased by 48% YoY, a relatively cheaper source of power generation.
o Solar-based generation increased by 54% YoY.
o Coal-based cost of generation declined by 14% YoY due to the addition of local coal-based power plants to the system.
o No electricity generation on HSD, the most expensive source of power generation.
Courtesy- AHL Research