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Express Tribune
09-06-2025
- Business
- Express Tribune
Power capacity rises to 46,605MW
Pakistan's installed electricity generation capacity rose to 46,605 megawatts (MW) during the first nine months of the ongoing financial year 2024-25, adding further strain on consumers due to mounting capacity payments for idle plants that produce no power. According to the Economic Survey 2024-25 released on Monday, the country's generation capacity grew by 1.6% from 45,888 MW recorded during the same period last year. This increase was primarily attributed to the addition of 2,813 MW through net metering, said the government. However, this expansion has intensified capacity payments, which now stand at Rs2.5 trillion to Rs2.8 trillion annually, burdening consumers who are compelled to pay for plants that remain idle. In an effort to reduce this financial strain, the government has terminated Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs) effective October 1, 2024. These include HUB Power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power, and Atlas Power. The composition of the country's installed capacity by source stands at thermal (55.7%), hydel (24.4%), renewable (12.2%), and nuclear (7.8%). While thermal power remains the dominant source, its share has declined in recent years, reflecting a gradual shift toward indigenous and cleaner energy alternatives. Out of total electricity generation of 90,145 gigawatt-hours (GWh), the share of hydel, nuclear, and renewable energy combined reached 53.7%a significant move towards more sustainable energy sources. As of March 2025, the Private Power and Infrastructure Board (PPIB) had facilitated 88 operational IPPs with a cumulative capacity of 20,726 MW. The government's focus on renewable and local energy is further underlined by the fact that 84% of upcoming projects are in the clean energy sector. Power consumption Electricity consumption, however, showed a decline. During July-March FY2025, Pakistan's total electricity consumption stood at 80,111 GWh, down 3.6% from 83,109 GWh in the corresponding period of FY2024. This reduction is largely attributed to energy conservation measures, increased power tariffs, the growing use of off-grid solar systems, and sluggish industrial activity. The household sector accounted for 49.6% (39,728 GWh) of total consumption, up from 47.3% (39,286 GWh) the previous year. This indicates rising residential demand, likely driven by population growth, increased use of electrical appliances, and stable weather patterns. In contrast, industrial consumption fell to 21,082 GWh from 22,031 GWh, lowering its share from 26.5% to 26.3%. The agriculture sector saw the sharpest dropa 34.3% decline from 6,951 GWh to 4,566 GWhreducing its share to 5.7%. This was likely due to changing irrigation practices, rainfall variability, and a shift towards diesel-powered or solar alternatives amid high electricity prices. The commercial sector posted a slight increase in consumption, rising from 6,776 GWh to 6,898 GWh, lifting its share to 8.6%, reflecting modest improvements in retail and business activities in urban areas. Oil sector In the oil sector, total petroleum product consumption reached 13.17 million metric tonnes (MMT) during July-March FY2025, up 7.04% from 12.30 MMT in the same period last year. The transport sector remained the largest consumer, with usage increasing 7.99% to 10.54 MMT, comprising 80% of total demand. This growth reflects improved trade and logistics activity, alongside greater mobility. Industrial oil consumption fell 7.35% to 755.40 thousand tonnes due to reduced output in energy-intensive industries and fuel-switching to cheaper alternatives such as natural gas. The power sector's petroleum use plummeted 77.68% to just 116.21 thousand tonnes as reliance on furnace oil declined in favour of hydropower, coalincluding Thar coalnuclear energy, and imported LNG. The domestic sector's petroleum use rose moderately by 7.34%, while the agriculture sector posted a slight decline of 3.35%. The government sector recorded a small increase of 3.27%. During July-March FY2025, petroleum product imports climbed to 12.53 MMT, up 12.5% in volume, though the import bill remained stable at $8.4 billion due to lower global prices and improved procurement practices. Motor spirit (petrol) imports rose 11.3% in volume but fell 5.1% in value to $3.04 billion, reflecting favourable global prices. High-Octane Blending Component (HOBC) imports soared more than eightfold to 144.44 thousand tonnes, with the value rising to $108.40 million amid growing demand for premium fuels. High-speed diesel imports also increased 17.4% to 1.45 MMT, though the import bill edged lower to $1.01 billion. Crude oil imports rose by 8.8% to 6.76 MMT, but costs remained flat at $4.11 billion due to softened global prices. Higher crude imports align with increased domestic refining activity aimed at meeting local fuel demand. Jet fuel imports almost doubled to 195.67 thousand tonnes, with their value rising to $143.10 million, signalling recovery in domestic and international air travel. A small quantity of aviation gasoline (0.24 thousand tonnes) was imported, not recorded in the previous year. Gas sector Domestic natural gas met 29.3% of the country's total primary energy supply in FY2024. The country has a 14,276 km transmission network and over 200,000 km of distribution pipelines serving 10.7 million consumers. To address rising demand, the government is enhancing both local production and imports. Two Floating Storage Regasification Units (FSRUs) currently process 1,200 million cubic feet per day (MMCFD) of RLNG.
Express Tribune
09-06-2025
- Business
- Express Tribune
Pakistan's power capacity hits 46,605 MW, idle plant costs burden consumers
The country has witnessed an increase in electricity generation installed capacity during the ongoing financial year 2024-25, placing an additional burden on consumers. The capacity payments have been a result of an increase in electricity generation installed capacity, which touched 46000 MW. The consumers have been paying Rs 2.5 to Rs 2.8 trillion every year, which they pay to idle plants that have not been producing a single unit. According to the Economic Survey 2024-25 released here on Monday, as of July–March FY2025, Pakistan's total installed electricity generation capacity stood at 46,605 MW, reflecting a 1.6 percent increase compared to 45,888 MW recorded during the corresponding period of FY2024. The government said that this increase is primarily attributed to the addition of 2,813 MW through net metering. However, the Government of Pakistan terminated Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs)—notably HUB Power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power, and Atlas Power—effective October 1, 2024. The percentage shares of generation capacity by source were: hydel (24.4%), nuclear (7.8%), renewable (12.2%), and thermal (55.7%). Although thermal power remains the dominant source, its share has declined in recent years, indicating an increasing reliance on indigenous energy sources. Out of the total electricity generation of 90,145 GWh, the combined share of hydel, nuclear, and renewable sources stood at 53.7 percent, highlighting a significant shift towards more sustainable and environmentally friendly alternatives. The energy sector remains a pivotal driver of Pakistan's economic and industrial development, influencing productivity, trade competitiveness, and quality of life. During the first nine months of FY2025 (July–March), Pakistan continued to face challenges in energy affordability, sustainability, and security. Nonetheless, key reforms, capacity enhancements, and a shifting energy mix signaled gradual progress toward a more resilient and diversified energy landscape. As of March 2025, total installed electricity generation capacity was 46,605 MW, reflecting a continued shift toward cleaner energy sources. Hydel, nuclear, and renewable sources collectively accounted for 44.3 percent of installed capacity—an improvement from previous years—while thermal power's share declined to 55.7 percent. In terms of electricity generation, Pakistan produced 90,145 GWh during July–March FY2025, with 53.7 percent generated from hydel, nuclear, and renewable sources. This transition reflects a positive move toward indigenous and environmentally friendly energy sources. Sectoral consumption patterns show the household sector remained the largest consumer, accounting for nearly half of the country's electricity usage. PPIB continued to play a critical role in enabling private sector participation in power generation and transmission. During the review period, key milestones were achieved, including the operationalization of the 884 MW Suki Kinari Hydropower Project, along with ongoing progress on new solar, wind, and bagasse-based projects. As of March 2025, PPIB had facilitated 88 operational IPPs with a cumulative capacity of 20,726 MW. The government's focus on renewable and indigenous energy is evident from the project pipeline, 84 percent of which comprises clean energy initiatives. In the petroleum sector, domestic production remained constrained, maintaining a high reliance on imports. However, stable international oil prices helped moderate the energy import bill compared to the previous year. Domestic refining capacity utilization remained suboptimal, though efforts to attract investment in refinery upgrades and new capacity continued. On the natural gas front, the depletion of indigenous reserves remains a major concern. With no major discoveries, Pakistan increasingly relied on LNG imports to meet domestic demand, especially in the power and industrial sectors. In response, initiatives are underway to improve energy efficiency and expand LNG supply chain infrastructure. Coal continues to play a significant role, especially through Thar coal-based power projects. The indigenization of coal energy is being actively pursued, with several Thar-based plants contributing to the national grid. Nonetheless, environmental concerns and the need for clean technology adoption remain key policy considerations.
