Power generation records 22% surge in April after cut in tariff

• Cost of power generation in April rises by 8.0% YoY.
• "April’s power generation was highest in eight months".
• RLNG-based electricity production leads to price surge.
  

KARACHI: A 22% year-on-year (YoY) increase in April of the current fiscal year was recorded by the country's power generation, driven by higher demand following a reduction in electricity tariffs by the government, The News reported.

Generation of electricity totalled 10,513 GWh in April 2025, rising over 22% compared to the same month last year, and up 25% from March 2025. Generation levels remained aligned with the reference benchmarks despite the increase in demand.

“April’s power generation was the highest in eight months,” said analyst Mohammad Sohail of Topline Securities, attributing the surge to the government’s decision to cut electricity prices, which spurred greater consumption.

However, over the first 10 months of the current fiscal year, cumulative generation reached 100,660 GWh, slightly down from 100,980 GWh in the same period of the previous year, reflecting a marginal YoY decline.

Hydropower led the electricity mix in April, contributing 2,306 GWh, followed by RLNG-based generation at 2,157 GWh and nuclear at 1,882 GWh. 

Local and imported coal contributed 1,525 GWh and 1,054 GWh, respectively. Gas-based generation totalled 842 GWh, while wind energy contributed 478 GWh.

The cost of power generation in April rose by 8.0% YoY and 5.0% month-on-month (MoM), averaging Rs9.92 per kWh, compared to Rs9.21 per kWh in April 2024. Over the first 10 months of FY25, the average cost remained relatively flat at Rs8.8 per unit.

The rise in generation cost was largely driven by higher RLNG-based electricity production, which saw its cost increase to Rs24.26 per kWh — up 10% from Rs22.13 per kWh a year earlier.

Hydropower remained the leading contributor to the power mix in April, accounting for 21.9% of total generation, followed by RLNG (20.5%) and nuclear (17.9%). Among renewables, wind and solar contributed 4.6% and 1.1%, respectively.

For the ten-month period of the current fiscal year, hydropower continued to dominate the generation mix, maintaining a 29.5% share.