Power Generation Up by 5% in March 2025

In March 2025, power generation rose by 4.8 percent year-on-year (YoY), reaching 8,409 GWh (11,302 MW), compared to 8,023 GWh (10,784 MW) in March 2024. On a month-on-month (MoM) basis, generation also saw a significant increase of 21.1 percent. However, during the first nine months of FY2025 (9MFY25), total power generation declined by 2.5 percent YoY to 90,148 GWh (13,709 MW), down from 92,449 GWh (14,007 MW) in the same period last year. According to Arif Habib Limited, the decline is primarily attributed to reduced overall demand, influenced by higher electricity tariffs and a growing shift toward solar energy adoption. For March 2025, actual power generation was 8.3 percent below the reference generation level, which may negatively affect the QTA. Local coal-based generation surged by 61.6 percent to 1,393 GWh but remained 3.8 percent below the reference generation target for FY2025. Gas-based generation increased by 23.1 percent YoY but was 21.4 percent lower than the monthly reference. Wind power generation rose by 12.4 percent YoY and exceeded its reference generation by 9.5 percent. Solar power generation grew by 9.1 percent YoY and stood 6.2 percent above its reference level. Nuclear generation improved by 7.4 percent YoY but fell short of the reference generation by 11.2 percent. RLNG-based generation declined by 7.9 percent YoY but was still 17.8 percent higher than the target set at the beginning of FY2025. Imported coal-based generation reached 545 GWh in March 2025, compared to no generation in the same month last year. Hydel generation experienced a significant YoY drop of 41.5 percent and was 22.3 percent below the reference level, mainly due to reduced water availability. The cost of power generation was Rs. 9.46/KWh in March 2025. However, when accounting for transmission losses and previous adjustments, the fuel cost increased to Rs. 9.23/KWh. This actual fuel cost of Rs. 9.23/KWh is lower than the reference fuel cost of Rs. 9.26/KWh, which was projected at the beginning of FY2025. As a result, a decrease of Rs. 0.03/KWh in the fuel charge adjustment is expected, which will be refunded to customers in the May 2025 electricity bill. Power generation for March 2025 was 8 percent lower than the reference generation, which was set at 9,168 GWh. During 9MFY25, the shortfall has accumulated to 6,741 GWh, with actual generation recorded at 90,148 GWh, reflecting a 7 percent decline compared to the reference generation.