Karachi: Amid rising electricity bills, cost of power generation registered significant decline of over 25 percent in September 2023. Electricity generation cost in September stood at an average of Rs 7.42 per KWh compared with an average cost of Rs 9.91 per KWh in same period of previous year, decline of 25.1 percent YoY, said brokerage house Arif Habib Limited.

“On YoY basis, decrease in fuel cost is witnessed mainly due to decline in coal and re-gasified liquid natural gas (RLNG) based cost of generation along with 14 percent YoY rise in hydel-based generation,” said AHL.

On monthly basis, cost of power generation saw decline of 10.3 percent as compared to average cost of Rs 8.27 in August. However, despite decline in cost of power generation, rising electricity bills have become headache for country’s populace, who are already feeling pinch of high inflation and slow economic activity.

Meanwhile, power generation in country clocked in at 13,339 GWh (18,526 MW) in September 2023, up 3.6 percent as compared to same period last year. Back in September 2022, power generation stood at 12,878 GWh (17,886 MW).

Year-on-year increase in power generation comes on back of local coal-based sources, which reached 1,479 GWh during September 2023, up by 155.6 percent YoY, said AHL.

Apart from local coal, YoY increase was attributed to improved RLNG (16.8 percent), hydel (13.7 percent) and bagasse (2.9 percent).

However, on monthly basis, power generation decreased by 16.4 percent as compared to 15,959 GWh registered in August. During 1QFY24, power generation also increased by 7.4 percent YoY to 44,138 GWh (19,990 MW) compared to 41,081 GWh (18,606 MW) during 1QFY23.

In September, hydel was leading source of power generation, accounting for 37.6 percent of generation mix, to become largest source of electricity generation in country. Followed by nuclear, which accounted for 17.1 percent of overall generation, followed by RLNG which accounted for 16 percent of power generation share.

Among renewables, wind, solar and bagasse generation amounted to 3.1 percent, 0.6 percent and 0.3 percent of generation.

Published in The Daily National Courier, October, 21 2023

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