Power generation increases 8.3pc despite costly fuel

Web Desk – June 20, 2021

KARACHI: Amid hike in fuel cost, the country’s power generation in May 2021 posted growth of 8.3 per cent year-on-year (YoY) to 13,010 GWh while it rose by 24pc month-on-month (MoM) compared with 10,481 GWh in April 2021. The first 11 months of the current fiscal year (11MFY21) saw a 6.7pc jump in power generation to 115,862 GWh from 108,579 GWh during the same period in FY20.

According to a report of Arif Habib Limited (AHL), the share of hydel in power generation slightly came down in May 2020 and 11MFY2021. However, its overall share in the country’s power generation stood at 26.6pc in May 2021 as compared to 37pc in the same month in 2020.

Hydel power’s share fell to 29.8pc in 11MFY21 as compared to 31.2pc in the same period last fiscal year.

Power generation through hydel sources in May 2021 plunged by 22.2pc to 3,465 GWh from 4,457 GWh in May 2020. However, its share in 11MFY21 slightly moved up by 2.1pc to 34,581 GWh from 33,883 GWh in the same period in FY20.

The share of regasified liquefied natural gas (RLNG) in power output came down by 21.7pc in May 2021 from 22.8pc in a year ago, while in 11 months of FY21, its share inched up by 21pc from 19.2pc in the same period in FY20.

Power generation from RLNG went up by 3.5pc YoY in May 2021 to 2,619 GWh from 2,734 GWh in May 2020 while RLNG share in 11MFY21 in power generation grew by 15.4pc to 24,235 GWh from 21,005 GWh in the same period last fiscal year.

The share of coal went up by 20pc in May 2021 from 18.2pc in May 2020 while its share remained pegged at 21.5pc in 11MFY21 and 11MFY20. Power generation through gas crawled up to 11.2pc in May 2021 from 8.4pc in May 2020 but slightly dropped by 11.3pc in 11 months of FY21 from 12.6pc in the same period in FY20. Nuclear power generation surged by 9.8pc from 7.6pc in May 2020 while its share in 11MFY21 also remained unchanged at 8pc.

The share of furnace oil (FO) in power generation swelled by 5.9pc in May 2021 from 1.1pc in May 2020 while its share increased by 4.4pc in 11MFY21 from 3.3pc in the same period last fiscal year.

Power generation through FO posted a whooping jump to 771 GWh in May 2021 from 130 GWh in May 2020 while it jumped by 44pc to 5.097GHh in 11MFY21 as compared to 3,532GHh in the same period in FY20.

Analyst Shankar Talreja at Top Line Securities attributed increase in power generation in May 2021 to economic recovery and seasonal factors amidst onset of summer season.

He said nearly all the sectors of the economy had posted strong growth which helped give a jump of 6.7pc in the last 11 months. Nevertheless, he added, the cost of electricity generation has surged by 33pc in May 2021 YoY to Rs5.70 per KWh from 4.28 in May 2020 due to rising oil and coal prices. Besides, the share of hydel has declined thus contributing additional cost.

The fuel cost in 11MFY21 was Rs4.61 per KWh as compared to Rs4.82 in the same period last fiscal year.

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