Power Generation Slightly Up in July As Fuel Price Rises

Power generation in the country went up by 0.3 percent YoY to 14,880 gigawatts per hour (GWh) in July 2024, and up 11 percent MoM compared to 13,461 GWh the previous month. The cost of fuel for power generation increased by 7 percent YoY to an average of Rs. 9/unit in July 2024. In FY24 fuel cost was down by 6 percent to Rs. 8.8/unit. Major contributors during June 2024 were Hydel (35.9 percent), RLNG (20 percent), and Nuclear (13.4 percent). Hydel-based power generation decreased by 3 percent YoY to 5,341 GWh in July 2024 from 5,518 GWh last year. On an MoM basis, Hydel-based power output increased by 13 percent in July from 4,729 GWh in the previous month. RLNG power generation is up by 2 percent YoY from 2,918 GWh in July 2023 to 2,970 GWh in July 2024. On an MoM basis, RLNG generation is up 22 percent. Coal (imported) power generation decreased by 48 percent YoY to 1,137 GWh in July 2024 from 2,180 GWh last year, while monthly coal (imported) power generation shows an increase of 78 percent from 637 GWh observed the previous month. Nuclear-based power generation decreased by 6 percent YoY to 1,988 GWh in July 2024 from 2,107 GWh last year and down by 1 percent MoM compared to 1,998 GWh in June 2024. Solar-based generation is up 47 percent YoY from 75 GWh last year to 110 GWh in July 2024. During July 2024, fuel cost for power generation increased by 7 percent YoY and also 4 percent MoM to an average of Rs. 9/unit, compared to an average cost of Rs. 8.3/unit in July 2023 and Rs. 8.6/unit in June 2024, respectively. Furnace Oil was the priciest with a cost of Rs. 31 per unit in July 2024 while RLNG was the second priciest during the same period.