Pakistan's power generation mix comprises of hydro, thermal, nuclear, wind, solar and bagasse/biomass power plants. In addition, Pakistan also imports electric power from Iran. The generation market is heavily dominated by Independent Power Producers (IPPs), along with public sector power plants.
Largest share in Pakistan's power generation mix. Its' generation share clocks at 62% in fiscal year 2021 as compare to 60% in 2020.
Total power generated in the country including power plants connected with NTDC and KE system is 143,090 GWh for year 2021.
Hydel and renewable energy plants (solar, wind, bagasse) have an overall utilization rate of 41% of their dependable capacity. The utilization fluctuated beteen 15% and 67% depending on the seasonal variability.
Base load thermal and hydropower plants supply electricity on 'Take or Pay' basis, creating obligation to pay capacity charges regardless of power evacuation.
Market regulator, NEPRA has repeatedly pointed out deviation of Economic Merit Order.
Even though long term RLNG contracts have stablised power markets to some extent, spot RLNG procurement is still needed for power and other sectors. High LNG prices and technical issues pertaning to infrastructure have resulted in usage of furnace oil and costliest high speed diesel for generation.
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