Electricity Production in Pakistan Slumps by 11.2% in First Two Months of 2023
In the first two months of the fiscal year 2022–2023 (2MFY23), Pakistan’s electricity production decreased by 11.2 percent to 28,203 GWh (18,954 MW), compared to 31,758 GWh (21,343 MW) in 2023.
Data from Arif Habib Ltd. show that compared to August 2021, when power generation was 16,078 GWh (or 21,610 MW), it decreased by 12.6 percent YoY to 14,053 GWh (or 18,888 MW) in August 2022.
The research emphasises that decreased generation from RLNG, furnace oil, wind, coal, and hydel by 39, 37, 29, 6, and 4 percent on a YoY basis, respectively, was the cause of the decline in power generation during August. On the other hand, nuclear and solar power generation saw a significant boost as they each saw YoY increases of 10 and 15%. On a YoY basis, generation from bagasse also went up by 38%.
Hydel (38 percent), coal (15 percent), nuclear (13 percent), RLNG (13 percent), and gas were the main contributors during the month (9 percent). The percentage of furnace oil was only 7%.
The cost of fuel for power generation increased by 57 percent YoY in August 2022 to Rs. 10.06/KWh from Rs. 6.41/KWh in August 2021. However, when compared month to month (MoM), the price of petrol decreased by 6%. The following causes contributed to the MoM drop.
- Reduced RLNG-based production costs by 13% on a monthly basis, to Rs. 24.7/KWh (largely due to a 2.5 percent decline in RLNG prices on a MoM basis)
- Reduced furnace oil-based production costs by 0.2% on a monthly basis, to Rs. 35.6/KWh
- Reduced nuclear-based energy costs by 3% on a monthly basis, to Rs. 1/KWh
However, the cost of producing hydel and solar-based power increased in August on a MoM basis, by 8 and 4 percent, respectively.