Karachi: Power generation in Pakistan reached a ten-month peak in June 2024, with a total output of 13,461 GWh, demonstrating a 7% increase month-over-month. This surge reflects heightened electricity demand from both domestic users, due to rising temperatures, and from the industrial sector, indicating a positive shift in economic activities despite high electricity tariffs which had previously subdued demand.

According to JS Global, the power generation mix for the month was led by Hydel at 35%, followed by RLNG at 18%, Nuclear at 15%, and Coal at 16%. Notably, Hydel's contribution increased by 4 percentage points from the previous month, underscoring its growing significance in the national energy mix. The overall performance for the fiscal year, however, was less optimistic with a year-over-year decline of 2% in total generation, totaling approximately 127,166 GWh.

This overall decline during the fiscal year was attributed to the sluggish economic activities impacting demand, exacerbated by high power tariffs. However, specific sources such as Hydel and RLNG saw an annual increase in generation by 10% and 7%, respectively, while Coal and Nuclear experienced reductions. The detailed analysis also highlights significant shifts in generation costs, which decreased by 2% year-over-year in June, driven largely by the increased share and lower production cost of hydropower.

Despite the positive monthly recovery in power generation, the annual figures reflect ongoing challenges in the energy sector, including the varying performance across different generation sources and the complex dynamics of economic and tariff impacts on overall demand.