Power output reaches a seven-year low.

As per the AHL Research research, Pakistan’s power generation in August 2024 was 17,714 megawatts (MW) or 13,179 gigawatt-hours (GWh), a 17.4% decrease from August 2023. When compared to the 15,959 GWh (21,450 MW) over the same period last year, this is a considerable decrease.

Power generation saw a decrease of 11.4% month over month (MoM). In comparison to the same period in the previous year, when electricity generation was 30,798 GWh (20,697 MW), power generation declined by 8.9% year-over-year (YoY) to 28,059 GWh (18,857 MW) in the first two months of the fiscal year 2025 (2MFY25).

The actual generation of power during the evaluation period was 13.1%, which was less than the reference generation. It is anticipated that this reduction will lead to increased capacity charges for the quarterly tariff adjustment (QTA) in the second quarter of the fiscal year 2025 (2QFY25).

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Compared to PKR 8.27 per KWh over the same period last year, the fuel cost for power generation decreased by 9.3% YoY in the month under review to an average of PKR 7.49 per KWh. Fuel costs have decreased due to lower generation costs from local coal (down 21.4% YoY) and residual fuel oil (down 9.0%).

In addition, the share of power generated by nuclear and hydroelectric sources in the overall generation mix rose to 16.6% and 40.7%, respectively, from 37.6% and 12.8% in the same time the previous year. Fuel expenses decreased by 11.4% on a MoM basis.

In August 2024, the combined cycle power plants’ (CPHG) load factor reached zero as a result of decreased power purchaser demand. Thar Energy Limited (TEL) and ThalNova Power Thar Private Limited (TNPL) reported load factors of 69% and 65%, respectively, while the total load factor of the region’s coal-fired power facilities was 66%.

The Water and Power Development Authority (WAPDA) reduced its capacity by 4.2% and the Tarbela and Neelum Jhelum hydel plants did not dispatch power, resulting in a 10.2% YoY decrease in hydel-based generation to 5,362 GWh in August 2024.

In August 2024, power generation costs came to PKR 7.49 per KWh. The fuel cost went up to PKR 8.81 per KWh after accounting for transmission losses and earlier adjustments. The actual fuel cost is lower than the reference fuel cost, which was predicted to be PKR 9.39 per KWh at the beginning of FY25. The fuel fee adjustment is therefore expected to decrease by PKR 0.58 per KWh, and users will receive a refund in their October 2024 bill.