KARACHI: Total electric power generation in January 2021 surged 4.0 percent to 8,079GWh compared with 7,794GWh in January 2020, data issued by National Electric Power Regulatory Authority (NEPRA) suggested on Monday.
“In light of the shortage of domestic natural gas and the surge in RLNG prices globally, the return of furnace oil (FO) in Pakistan’s power sector was not only expected but inevitable, as it climbed the merit order list,” Ali Zaidi at JS Global Capital said.
FO-based production jumped nearly 22 percent to 974GWh in January 2021 from 801GWh in January 2020. “In terms of contribution to total power generated, FO’s share saw an increase of nearly 2.0 percentage points to 12 percent during the month,” Zaidi added.
On the other hand, gas-based generation saw the greatest dip during January as it fell 19 percent to 1,334 GWh. Similarly, RLNG-based generation also declined 4.0 percent to 916GWh. As generation from all other major fuel sources saw an uptick, the respective contributions of gas and RLNG in total power generation contracted by as much as 5.0 percent and 1.0 percent during the month.
“Given the change in the fuel mix, one could have reasonably expected the fuel cost per unit to increase drastically. However, a 23 percent yearly rise in hydel generation limited this rise to 1.0 percent to Rs6.06 during January 2021,” Zaidi said.