Pakistan’s power generation decreases in January as demand dips

Power generation in Pakistan clocked in at 8,152 GWh (10,957 MW) in January 2025, a decrease of 2% YoY compared to the same period of the previous year, amid a decline in the overall demand.

Back in January 2024, power generation stood at 8,314 GWh (11,175 MW).

On a monthly basis, power generation improved by 4.5% as compared to 7,801 GWh in December.

In the first seven months of FY25 (July-January), power generation fell by 3.2% YoY to 74,794 GWh compared to 77,296 GWh in the SPLY.

Analysts have voiced concerns over Pakistan’s decline in electricity consumption, which is accompanied by sluggish economic activity and high energy costs.

“The reduction in generation is due to decreased overall demand amid drop in temperatures and increased solarization,” said Arif Habib Limited, in a note.

A growing shift towards alternative energy sources, especially solar, which has become increasingly popular among residential and commercial sectors.

Pakistan’s power generation increases in November as cost inches up

This rising trend has left decision-makers grappling with its implications for the national grid and energy sector, especially after provincial governments announced plans to distribute panels to low-income consumers free of cost or at a very low price.

Meanwhile, the total cost of generating electricity in Pakistan decreased by 22%, clocking in at Rs10.79 KWh in January 2025 compared to Rs13.79 KWh registered in the same period of the previous year.

The decline in cost is attributed to an increase in generation from nuclear, a relatively cheap energy source.

In January, nuclear emerged as the leading source of power generation, accounting for 27% of the generation mix, to become the largest source of electricity generation.

This was followed by RLNG, which accounted for 19% of the overall generation, ahead of coal (local), which accounted for 16% of the power generation share.

During the month, hydel generation reduced by 6% YoY, accounting for 11% of the generation mix.

Among renewables, wind, solar and bagasse generation amounted to 3%, 1% and 1%, respectively, of the generation mix.