Electricity generation increases by 9pc in the month of September

At the moment, Pakistan’s capacity is about 35400 MW, this includes 3,000MW of coal-based plants.

 

According to information released by the National Electric Power Regulatory Authority (NEPRA), power generation has increased by 9% during September. The increase has been from 12,552Gwh of last year to 13,621Gwh this year.

The government’s aim is to increase the power generation by 300% in the next 20 years to 111,000MW and eliminate all existing thermal power plants, so they can meet the energy demands at a low cost. Coal and hydel have shown a big increase of 94%and 18% respectively during September, on the other hand, FO (furnace oil) and power generation off of gas have decreased by 20% to 18% during the month.

At the moment, Pakistan’s capacity is about 354,000MW, this includes 3,000MW of coal-based plants, 9,700MW of hydropower plants, 20,000MW of thermal plants other than 1,345MW of nuclear and 1,900MW or renewables.

The total power generation for the Q1FY20 (July to September FY19), was 41,904MW, which is a 4% increase from last year.

“The slender rise in power generation has been led by higher coal and hydel-based generation, thereby improving their share in the country’s total power generation mix to 15 percent and 37 percent during Q1FY20 up from 10 percent and 31 percent during the same period last year,” – a report issued by Pearl Securities revealed.

As per expectations, the power generation off of FO declined 20% and other sources were being preferred that are cheaper in cost than FO based power plants. As a result, the power generation off of RFO decreased by 47%.

During September, coal-based power generation rose by 94%:

“Cumulatively during Q1FY20, a notable rise of 45 percent was witnessed in a coal-based generation, thereby highlighting the government’s resolve to increase reliance towards low-cost power generation sources,” – a report said.

The hydropower generation increased by 18% during September. But, it was an 11% decline on a consecutive basis. During Q1FY20, the hydropower generation increased by 21%.

The contribution of hydel power in overall energy production increased to 37%, while coal increased to 16% during the month of September. Analysts have said that power generation will decline during the coming months due to changes in seasons.

“Moreover, with the government’s aim to phase out inefficient generation companies, curtail generation from higher-cost FO plants and consequently, increase reliance on cheaper sources of generation, we estimate the share of coal and LNG to further rise in the country’s overall generation mix.”

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