- September 21, 2026
- Posted by: Tresmark
- Category:
No Comments
Pakistan’s power generation increased 5.1% year-on-year to 14,943 GWh in August 2026, compared with 14,218 GWh recorded in the same month last year.
However, generation declined around 1% month-on-month from 15,122 GWh in July 2026.
According to Arif Habib Limited, the increase in generation was supported by lower tariffs, the shift of industrial consumers toward the national grid, incremental consumption incentives for industrial and agricultural users, and improved economic activity.
Despite higher generation, the average cost of electricity generation surged 38% YoY to Rs10.01/kWh in August, compared with Rs7.27/kWh a year earlier. The increase was attributed to a higher share of RLNG and furnace oil in the generation mix, along with elevated international oil prices.
On a monthly basis, generation costs declined 7% from Rs10.75/kWh in July. Distribution companies subsequently sought a positive Fuel Charges Adjustment (FCA) of Rs1.73/kWh for August.
Hydel Leads Generation Mix
Hydropower remained the largest source of electricity generation in August, contributing 38% of total generation. Hydel output reached 5,654 GWh, up 2.5% YoY and 17% above the long-term August average of 4,846 GWh.
Coal accounted for 27% of the generation mix, followed by nuclear at 10%, gas at 9% and RLNG at 7%.
Coal-based generation jumped 53% YoY to 3,956 GWh, its highest August level on record. Imported-coal generation more than doubled, rising 105% YoY to 2,330 GWh, while local coal generation increased 13% to 1,626 GWh.
The shift toward coal generation reflects lower RLNG availability and elevated LNG costs, alongside higher electricity demand.
Renewables contributed 6% from wind power and 1% from solar generation during the month.
