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Tuesday, April 16, 2024

Electricity generation expense jumped by 131 percent

The expense of power generation in Pakistan increased by 131 percent from Rs. 5.7 kWh in May 2021 to Rs. 13.15 kWh in May 2022.

Pakistan incurred an increase of 131 percent, to Rs13.15 kWh in May 2022, compared to Rs5.7 kWh in May previous year for the total cost of electricity generation. The increase in total cost is primarily the consequence of an increase in cost of furnace oil (FO), coal, and Regasified Liquefied Natural Gas (RLNG) which increased by 178 percent and 135 percent respectively, as mentioned on a note by brokerage house Ismail Iqbal Securities Limited.

Read more: Electricity prices to increase again

The note shows the comparison of fuel cost of May 2022 with the corresponding month of 2021. Power generation from coal fell by 23% year on year (YoY) to 2,018 GWh, according to data on generation mix. With yearly increases of 67 percent, 49 percent, and 93 percent, respectively, power generation from FO, nuclear, and wind is taking up the slack.

Nuclear power generation has advanced significantly, accounting for 13% of total energy generation in May 2022, up from 10% in May 2021.

During May-22, electricity generation went up by 13% YoY to record at 14,657 GWh. Ismail Iqbal Securities said, “Higher than usual summer temperature and healthy economic activities remained major drivers behind growth.”

During May-11, 2022, power generation went up by 12 percent YoY and reached 129,317 GWh in comparison with 115,862 GWh noted during May-11, 2021.

Hydel was the dominant source of electricity generation, accounting for 24% of the total mix with 3,591 GWh generated in May 2022, up from 3,465 GWh produced in May 2021 which results in 4% increase.

Electricity generation through RLNG increased by 19 percent and touched 3,355 GWh in May 2022. However, 2892 GWh was recorded in May 2021 which reported for 23 percent of the energy mix. Moreover, electricity generation through coal totaled for 14 percent of the generation.

Read more: Energy Security key for Pakistan’s progress