During 7MFY19 power generation in Pakistan witnessed an increase of 4.4% YoY. The share of FO based generation has increased to 22% compared to 20% in same period last year. However, the share of RLNG based generation has declined to 15% from 20% in Jan’18.
Gas based generation down by 8% YoY
Gas based generation took a dip of 8% YoY to 1,709 GWh during Jan’19. The decline in generation was witnessed due to 18%, 8% and 33% YoY decline in generation of Engro Powergen, Foundation Power and Habibullah, respectively. In addition to this, Fauji Kabirwala and Altern generated zero electricity in Jan’19. However, generation of Uch-II increased by 2% YoY. For details of plant wise load factors, kindly refer to the next page of this report.
Fuel cost at a 4-year high; up by 20% YoY to PKR 7.3/KWh
Hydel based generation has decreased by 21% YoY to 478 GWh (642 MW) during Jan’19; this has increased the total cost of generation.
Solar based generation also declined by 21% YoY to 43 GWh compared with 55 GWh in same month last year.
Furnace oil based generation increased by 6% YoY to 1,722 GWh (2,315 MW). Average cost of generation on FO remained PKR 13.9/KWh which is 34% YoY higher from Jan’18. The rise in FO based cost is backed by 20% YoY rise in average FO prices. We also highlight that FO has the highest weight in total cost rise; 78% (PKR 0.96/KWh) rise in fuel cost has been contributed by FO based generation.
Coal based cost of generation also increased by 31% YoY to PKR 6.8/KWh. Coal contributed 43% (PKR 0.53/KWh) in total fuel cost rise compared to Jan’18.
The country did not produced any unit of electricity on HSD in Jan’18 but produced 12 GWh in Jan’19. The cost of HSD based generation is the highest among all the available sources of generation (PKR 18.5/KWh).
Decline in RLNG based generation negatively contributed to total fuel cost rise (-25%; PKR -0.31/KWh). The share of RLNG in generation declined to 15% compared to 20% in Jan’18. However, the cost of RLNG based generation has increased to PKR 10.6/KWh (+14% YoY).