Power Generation Slightly Up in December 2024 Despite 11% Decline in Fuel Cost

Pakistan’s power generation increased by 2 percent on a year-on-year (YoY) basis to 7,800 GWh in December 2024, compared to 7,626 GWh during the same month of the previous year. According to Topline Securities, this is the 3rd consecutive rise and due to pickup in economic activity. In 1HFY25, it decreased by 3 percent to 66,641 GWh compared to 68,887 GWh in 1HFY24. Hydel generation decreased by 4 percent YoY arriving at 1,778 GWh as compared to 1,859 GWh. Nuclear-based power generation increased by 41 percent. On the other hand, power generation from imported coal declined by 68 percent YoY. The power generation from local coal also decreased by 40 percent YoY to 784 GWh. Moreover, solar also saw an encouraging growth in December, as the generation rose from 62 GWh to 76 GWh, an increase of 23 percent. During December 2024, fuel cost for power generation decreased by 11 percent YoY but up 25 percent MoM to an average of Rs. 9.1/unit, compared to an average cost of Rs. 10.3/unit in December 2023 and Rs. 7.3/unit in November 2024, respectively. Furnace Oil was the priciest with a cost of Rs. 26.7 per unit in December 2024 while RLNG was the second priciest during the same period. In 1HFY25, power generation cost increased by 2 percent to Rs. 8.4/unit.