Pakistan’s power generation cost sees rise in January

In the first month of the 2024, the country’s reliance on costly methods of electricity production has seen increased, reported 24NewsHD TV channel on Tuesday.

According to the National Electric Power Regulatory Authority’s (Nepra) documents, among the various sources, diesel emerged as the most expensive means of energy production, with each unit costing approximately Rs 45.61.

Throughout January, approximately 1.22% of the total electricity was generated through diesel.

Additionally, electricity generated from furnace oil incurred a cost of Rs 35.44 per unit, constituting around 9.03% of the total energy generated for the month.

Imported electricity from Iran incurred a cost of Rs 32.80 per unit, while electricity produced from liquefied natural gas (LNG) stood at Rs 24.29 per unit during the same period.

 The expense of generating electricity from imported coal surpassed Rs 21 per unit, according to Nepra documentation.

In contrast, locally sourced coal proved to be a more economical option, with the production cost amounting to Rs 11.92 per unit in January.

Gas-powered electricity production cost Rs 13.75 per unit, while electricity generated from bagasse was relatively lower, approximately Rs 6 per unit.

Nuclear power emerged as the most cost-effective energy source, with the production cost per unit standing at Rs 1.33 in January 2024.

Thus, the Central Power Purchasing Agency (CPPA) has sought approval from the Nepra to raise the tariff by Rs7.13 per unit in the January adjustment.