Fuel cost component of power generation surges 85% on yearly basis

KARACHI: The fuel cost component of the power generation during November 2021 surged 85 per cent YoY to Rs6.32/kWh, mainly due to a rise in the furnace oil, coal and regasified liquefied natural gas (RLNG)-based cost of generation, official data suggests.

“[The] RLNG-based cost of generation increased 166 per cent YoY to Rs17.29/kWh due to 123 per cent YoY rise in [the] RLNG prices to Rs2,720/mmbtu ($15.68/mmbtu),” Rao Amir Ali at Arif Habib Limited noted in a report.

“[The] coal-based cost of generation went up 85 per cent YoY to Rs13.14/kWh during November 2021 due to 121 per cent YoY rise in coal prices.”

Moreover, the furnace oil-based cost of generation increased 72 per cent YoY to Rs20.27/kWh. Hydel-based generation decreased 6 per cent YoY and wind-based cost of generation decreased 5 per cent YoY.

Overall, the power generation went up 13.4 per cent YoY to 8,482GWh (11,780MW) during November 21, compared with 7,479GWh (10,388MW) during November 2020.

“The rise in [the] generation was owed to higher generation from nuclear, coal, gas, furnace oil and solar,” Rao Amir Ali said.

Major contributors by share during November 2021 were hydel (33 per cent), nuclear (18 per cent), coal (16 per cent), RLNG (14 per cent), gas (13 per cent), wind (2 per cent), furnace oil (2 per cent), and bagasse (1 per cent).

During the month, the furnace oil-based generation surged 424 per cent, gas increased 150 per cent, nuclear-based generation inched up 124 per cent and coal-based power generation went up 26 per cent. However, RLNG, hydel and wind-based generation declined 37 per cent, 6 per cent and 5 per cent, respectively.

In addition, the hydel and wind-based generation decreased 6 per cent YoY and 5 per cent YoY, respectively.

“During November 2021, the fuel cost for power generation increased 85 per cent YoY to Rs6.32/kWh, mainly due to a rise in the furnace oil, coal and RLNG-based cost of generation,” Ali added.

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