Pakistan’s power generation experienced a significant decline in August 2024, dropping by 17.4 percent year-on-year to 13,179 gigawatt-hours (GWh), and down 11.4 percent month-on-month from 14,880 GWh in July. According to Arif Habib Limited, this reduction in power generation is expected to lead to higher capacity charges for the second quarter of FY25’s Quarterly Tariff Adjustment (QTA).

Despite the decrease in power generation, the cost of fuel for power production fell by 9.3 percent year-on-year, averaging Rs. 7.49 per unit in August 2024. This is a decrease from Rs. 8.27 per unit in August 2023 and Rs. 8.96 per unit in July 2024.

For the first two months of FY25, power generation dropped by 8.9 percent year-on-year to 28,059 GWh (18,857 MW), compared to 30,798 GWh (20,697 MW) in the same period last year.

In August 2024, the major contributors to power generation were Hydel (40.7 percent), Nuclear (16.6 percent), and RLNG (15 percent). Hydel-based power generation decreased by 10.7 percent year-on-year to 5,362 GWh, although it saw a slight month-on-month increase of 0.4 percent. Nuclear power generation rose by 7.3 percent year-on-year to 2,190 GWh and increased by 10.2 percent month-on-month. RLNG power generation fell by 23.2 percent year-on-year to 2,106 GWh and dropped 29.1 percent month-on-month.

Coal-based power generation from imported sources decreased by 20.3 percent year-on-year to 1,306 GWh, with a monthly decline of 13.3 percent. In contrast, solar-based generation increased by 16.6 percent year-on-year, reaching 98 GWh in August 2024.

The cost of fuel for power generation saw a notable decrease, with Furnace Oil being the most expensive at Rs. 30.32 per unit, while Nuclear fuel remained one of the cheapest options during the same period. This reduction in fuel costs provides some relief amid the overall decline in power generation.