KARACHI: Power generation increased by 8.8 per cent in December during the current fiscal year compared with the same month last year, driven mainly by higher output from coal- and RLNG-based plants.
Total power generation rose to 8,487 GWh in December 2025, marking the second-highest December output on record and the highest level since December 2021, according to power generation data released on Monday.
Generation during the month exceeded National Electric Power Regulatory Authority’s (Nepra) reference level of 7,965 GWh, reflecting stronger grid demand and a higher contribution from thermal and nuclear sources.
Analyst Zayan Babar Khan at Arif Habib Limited noted that generation above the reference level was supported by lower tariffs and the shift of captive consumers to the national grid following the imposition of the levy. This resulted in higher industrial demand, alongside improving economic activity, with the large-scale manufacturing sector posting 10.4 per cent growth in November of the current fiscal year.
During the first half of the fiscal year, total power generation stood at 67,356 GWh, up 1.1 per cent year-on-year (YoY), indicating broadly stable electricity demand despite ongoing efficiency and conservation measures.
Hydropower generation declined sharply on a month-on-month basis due to seasonal factors, falling to 1,534 GWh from 3,153 GWh in November. This reduced hydel’s share in the energy mix to 18.1 per cent, a decline partially offset by a sharp rise in coal-based and nuclear generation.
Generation from imported coal surged to 860 GWh, more than five times higher than a year earlier, while local coal-based generation increased 51 per cent YoY to 1,187 GWh.Nuclear power remained the largest single contributor, generating 2,126 GWh and accounting for 25.1 per cent of total output. RLNG-based generation stood at 1,464 GWh, down 9.0 per cent year-on-year, while gas-based generation was broadly flat at 951 GWh. Wind and solar power together contributed just under 3.0 per cent of total generation, reflecting limited seasonal availability.
The average fuel cost of power generation rose to Rs9.16 per unit, up 1.0 per cent YoY, largely due to a higher thermal share following the decline in hydel output. On a month-on-month (MoM) basis, fuel costs increased sharply as hydropower receded.
Despite higher fuel costs, increased generation and a favourable mix resulted in a positive fuel cost adjustment of Rs0.48 per unit, ending three consecutive months of negative FCA.Zayan Babar said power generation in January 2026 is expected to increase MoM, adding that hydel output may continue to exceed earlier expectations of weaker water flows, helping to contain fuel costs.
