Power Generation Up 1% Despite Huge Decline in Fuel Cost

Power generation in May 2025 was up by 1 percent YoY to 12,755 GWh. However, output remained below reference levels. During 11MFY25 stood at 113,416 GWh, marking a slight decline of 0.3 percent YoY. The uptick in May’s generation appears to be driven by increased demand, likely supported by a reduction in electricity tariffs, according to Arif Habib Limited. The cost of power generation fell by 11 percent YoY to Rs. 7.77/KWh, yet remained marginally above the reference benchmark. Local coal-based generation surged by 3 percent to 1,413 GWh. Gas-based generation decreased by 20 percent YoY. Wind power generation declined by 3 percent YoY. Solar power generation also fell by 7 percent YoY. Nuclear generation dropped by 15 percent YoY, and RLNG-based generation fell by 21 percent during the period in review. Imported coal-based generation reached 796 GWh in May 2025, 108 percent higher than in the same month last year. The cost of power generation was Rs. 7.77/kWh in May 2025. During 11MFY25, the average fuel cost was Rs. 8.67 per kWh, down 1 percent compared to 11MFY24.