Islamabad, Jan 20: In December 2024, Pakistan witnessed a modest 2% year-over-year increase in power generation, reaching 7,800 gigawatt-hours (GWh) compared to 7,626 GWh during the same month in the previous year. This rise marks the third consecutive year of growth, spurred by a revitalization in economic activities.
However, the first half of the fiscal year 2025 (1HFY25) saw a slight downturn, with overall power generation dropping by 3% to 66,641 GWh from 68,887 GWh in 1HFY24. This decline can be attributed to various sectoral shifts in energy production sources.
Notably, hydel power generation fell by 4% year-over-year, producing 1,778 GWh compared to 1,859 GWh previously, indicating variability in hydrological conditions.
Conversely, nuclear energy production showcased a remarkable 41% increase, highlighting advancements in nuclear technology and operational efficiency within the sector.
On the other end of the spectrum, generation from imported coal plummeted by a significant 68%, and local coal saw a 40% decrease, totaling 784 GWh.
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These declines reflect broader trends towards diversifying energy sources and potentially reducing reliance on coal due to environmental concerns and economic factors.
On a brighter note, solar power continued its upward trajectory with a commendable 23% increase in December 2024, climbing from 62 GWh to 76 GWh. This growth emphasizes the country’s ongoing efforts to harness sustainable and renewable energy sources.
In terms of fuel costs for power generation, there was a mixed picture. December 2024 saw an 11% year-over-year decrease in fuel costs, with the average price falling to Rs. 9.1 per unit from Rs. 10.3 per unit in December 2023.
Furnace oil remained the most expensive power generation source at Rs. 26.7 per unit, with re-gasified liquefied natural gas (RLNG) following closely, underscoring the ongoing challenges of managing energy costs while ensuring supply stability.
For the first half of FY25, the overall cost of power generation exhibited a slight increase of 2%, averaging Rs. 8.4 per unit. This reflects the complex interplay of factors affecting the power sector, including international market dynamics, domestic policy shifts, and technological advancements in energy production.
This nuanced view of Pakistan’s energy sector in December 2024 and the first half of FY25 provides insights into the challenges and opportunities within the evolving landscape of power generation.
