December power output rises as fuel costs drop 11%

Pakistan’s power generation rose by 2% year-on-year (YoY) to reach 7800 GWh in December 2024, up from 7626 GWh recorded in the same month the previous year.

Topline Securities reported this as the third consecutive month of increased power generation, driven by enhanced economic activity. In the first half of FY25, total power generation declined by 3%, reaching 66641 GWh compared to 68887 GWh in the same period of FY24. Hydel power production decreased by 4% year-on-year (YoY), generating 1778 GWh compared to 1859 GWh.

Nuclear energy witnessed substantial growth, increasing by 41%, while solar energy rose by 23% in December, producing 76 GWh compared to 62 GWh in the previous year. In contrast, power generation from imported coal plummeted by 68% YoY, and local coal production fell by 40% to 784 GWh.

Fuel costs for power generation saw an 11% YoY decrease in December 2024, averaging Rs. 9.1 per unit compared to Rs10.3 per unit in December 2023. However, costs rose by 25% month-on-month (MoM) from Rs7.3 per unit in November 2024. Furnace oil remained the costliest energy source at Rs26.7 per unit, followed by RLNG.

For the first half of FY25, the average power generation cost increased by 2%, reaching Rs8.4 per unit. This reflects the challenges posed by a changing energy mix and greater reliance on higher-cost fuels.

These trends underscore the need for strategic planning to balance costs and optimize Pakistan’s energy mix to support sustainable economic growth.