ISLAMABAD: Pakistan’s overall electricity consumption increased by 3.8 percent during the first nine months (July–March) of FY2025–26, according to the Economic Survey 2025–26. However, domestic and agriculture consumption recorded a decline, reflecting a structural shift toward alternative energy sources amid rising tariffs, affordability pressures, and energy conservation trends.
The survey reported that total electricity consumption reached 83,143 GWh compared to 80,811 GWh in the same period last year. Meanwhile, installed generation capacity rose to 49,651 MW, an increase of 8.5 percent from 45,782 MW in FY2025, supported in part by 7,319 MW of net metering additions.
The report noted that 13 independent power producers (IPPs) with a combined capacity of 5,105 MW were closed for various reasons, including fuel-based and multi-fuel plants.
The country’s energy mix continues to evolve, with hydel (23.4%), nuclear (7.1%), renewables (20.3%), and thermal (49.2%) contributing to total capacity. Hydel, nuclear, and renewable sources together accounted for 53.1 percent of total generation, highlighting a gradual shift away from thermal dependence.
Sector-wise, household electricity consumption fell to 47.5 percent from 49.6 percent a year earlier, while industrial usage rose significantly to 31.5 percent from 26.3 percent, indicating stronger industrial demand and recovery. Agricultural consumption dropped sharply by 42.3 percent to 2,636 GWh, likely due to irrigation changes, weather patterns, and a shift toward solar and diesel-based alternatives.
Commercial consumption recorded a slight increase, while the “others” category saw a marginal decline. The report attributed overall structural changes in demand to rising electricity costs and increasing adoption of alternative energy solutions.
On the supply side, key developments included the commissioning of a 32 MW bagasse-based power plant by Shahtaj Sugar Mills, expected to supply 126 million units annually, and proposed development of a 40 MW project in Gwadar.
The government is also considering a shift from net metering to net billing to better integrate distributed energy resources (DERs). Meanwhile, progress continues on Thar coal utilization and conversion projects, with multiple coal-based IPPs already operational under CPEC, aimed at reducing reliance on imported fuels.
Nuclear power plants, with a combined capacity of 3,530 MW across Karachi and Chashma sites, maintained an average capacity factor of around 80 percent, remaining among the most efficient segments of Pakistan’s power sector.
Story by Mushtaq Ghumman
