With a 6% YoY drop in power generation, Pakistan faces rising fuel costs and an increasing shift toward solar energy, as more consumers move off-grid to combat high electricity prices
Power generation in Pakistan fell to 12,487 GWh in September 2024, marking a 6% year-on-year decline compared to the 13,339 GWh produced in the same month last year.
On a monthly basis, power generation dropped 5.3% from August’s total of 13,179 GWh.
Experts attributed the drop in production to weakened economic conditions, as well as an increase in solar power and off-grid energy generation. “Solarisation and captive power solutions are gaining popularity, reducing reliance on the grid,” said energy analyst Amad Aamir.
The cost of generating electricity saw a significant rise of 12.4%, reaching Rs8.34/KWh in September 2024, compared to Rs7.42/KWh in September 2023. The surge in fuel costs, particularly from imported coal, which saw a 9% increase in price, was a major contributor to the rising costs.
Hydropower remained the largest source of energy, contributing 38.7% of the total power mix, followed by RLNG at 16.3% and nuclear energy at 12.8%. Renewables like wind, solar, and bagasse accounted for a smaller share, at 3.2%, 0.8%, and 0.3% respectively.
