Cost of power generation increases

Karachi, July 30, 2019: Cost of power generation also increased on a full-year basis during the last fiscal year. According to the latest data, during FY19, the average cost was Rs5.36/KWh, 4.7 percent higher than FY18.

This increase in average cost can be traced back to the energy mix where the costs of nearly all material sources increased in double digits.

During FY19, coal was 29.8 percent more expensive YoY while the cost of FO climbed 33.6 percent during the same period.

Similarly, RLNG and Gas also saw YoY increases of 21.3 percent and 16.3 percent respectively.

Power generation for Jun-19 increased by 4.4 percent MoM to 13,157GWh taking a total generation for FY19 to 122,706GWh.

During the month, Hydel energy was the most prominent source, contributing to nearly 29 percent of the electricity generated, courtesy of the monsoon season.

This was followed by RLNG, Coal, and Gas which respectively contributed 27 percent, 15 percent, and 14 percent to the aggregate generation.

During the month, 695GWh of power was generated from Furnace Oil (FO), reflecting a 74.6 percent MoM increase.

However, the government’s stance on furnace oil (FO) and the resultant shift towards alternative sources has resulted in a 40.2 percent YoY reduction in FO based generation.

As summer months pass and demand for energy decrease, so will the demand for FO. The average cost of generation during Jun-19 was Rs5.50/KWh, 8.6 percent higher than the preceding month and 7.3 percent higher YoY.