Karachi, March 24, 2023 (PPI-OT): Pakistan Power: Hydel generation makes a comeback!

Power generation for the month of February has clocked in at 7,756GWh, decreasing by 8.9%MoM while decreasing by 4.1%YoY compared to 8,088GWh generated last year. Circular debt for the power sector has crossed PkR2.6tn compared to PKR2.25tn in Jun’22.

Hydel generation for the month has clocked in at 2,052GWh, increasing substantially on a monthly basis as January is the month of least hydrology in the country historically. Meanwhile, generation from the costly RFO has decreased by 77%MoM, down to 108GWh as the country continues to reduce its dependency on the fuel.

Average cost of generation for the month has declined by 28% to PkR8.0/kWh owing to the hefty increase in generation from Hydel plants and the consequent decrease in reliance on costly thermal sources. In terms of the generation mix for February, the largest contributors are Hydel, Nuclear, RLNG, Coal and Gas contributing 26%/24%/19%/14%/11% to the mix.

HUBC has seen a significant decrease in power generation, with generation down 44%MoM and 77%YoY despite the new TEL and TNPTL plants coming online this year. KAPCO remained non-operational owing to the expiry of its PPA and is still out of the Merit Order.