Pakistan’s electricity generation increased 5% year-on-year (YoY) to 14,943 GWh in August 2026, marking the third-highest generation level recorded for any August.
The increase in generation, however, came alongside a sharp rise in fuel costs. Average fuel cost climbed 38% YoY to Rs10.01 per kWh from Rs7.27 per kWh in August 2025, according to data compiled by Arif Habib Limited (AHL).
Generation Slightly Lower Than July
Despite the annual increase, electricity generation declined slightly on a month-on-month basis.
Generation stood at 15,122 GWh in July and fell 1% to 14,943 GWh in August.
During the first two months of FY2027, total electricity generation reached 30,065 GWh, up 6% from 28,341 GWh recorded during the corresponding period of the previous fiscal year.
Hydel Remains Largest Source Of Power
Hydropower remained the largest contributor to Pakistan’s electricity generation mix in August.
Hydel generation increased 2% YoY to 5,654 GWh, accounting for 37.8% of total generation.
Imported coal generation more than doubled, rising 105% to 2,330 GWh from 1,138 GWh a year earlier. Its share of the generation mix increased to 15.6%.
Local coal generation also increased 13% to 1,626 GWh, representing 10.9% of total generation.
Gas And Wind Generation Increase
Gas-based electricity generation increased 27% YoY to 1,311 GWh, while wind generation jumped 63% to 833 GWh.
Generation from residual fuel oil (RFO) recorded an even sharper increase, surging 249% to 321 GWh. Despite the substantial increase, RFO accounted for only 2.1% of total generation.
Solar generation also increased 8% during the month.
RLNG And Nuclear Generation Decline
The rise in generation from several sources was partly offset by lower RLNG and nuclear output.
RLNG-based generation fell 52% YoY to 1,052 GWh from 2,180 GWh in August 2025. Its share of the overall generation mix consequently declined to 7% from 15.3%.
Nuclear generation dropped 29% to 1,528 GWh, reducing its share to 10.2% from 15.1% a year earlier.
The changing generation mix highlights the growing contribution from hydel, coal, gas and wind during the month, while RLNG and nuclear generation recorded significant declines.
Fuel Costs Rise Despite Higher Generation
The increase in electricity generation came with a significant rise in the average cost of fuel used for power production.
Average generation cost increased 38% YoY to Rs10.01 per kWh in August from Rs7.27 per kWh a year earlier. However, the cost was 7% lower than the Rs10.75 per kWh recorded in July.
RLNG recorded the highest fuel cost among the sources listed in the data. Its generation cost surged 111% YoY to Rs45.93 per kWh from Rs21.73 per kWh.
RFO generation cost increased 37% to Rs45.25 per kWh, while imported coal generation cost rose 21% to Rs17.09 per kWh.
Local Coal Offers Lower Generation Cost
While several fuel sources became more expensive, local coal generation costs moved in the opposite direction.
The cost of electricity generated from local coal fell 54% to Rs5.50 per kWh from Rs12.01 per kWh a year earlier.
Gas-based generation cost increased 6% to Rs14.22 per kWh, while bagasse generation cost rose 10% to Rs10.88 per kWh.
The divergence in fuel costs underscores the impact of the generation mix on the overall cost of electricity produced during the month.
DISCOs Seek Rs1.73 Per Unit Fuel Adjustment
The higher generation cost has also fed into the fuel charges adjustment mechanism.
Power distribution companies have sought a positive fuel charges adjustment of around Rs1.73 per kWh for August 2026.
CPPA-G has separately sought an adjustment of Rs1.7267 per unit, with NEPRA scheduled to hold a public hearing on September 29, 2026.
The proposed adjustment reflects the difference between the reference fuel charge and the applicable fuel cost for the month. The final impact on consumers will depend on NEPRA’s regulatory determination and the applicable billing framework.
Power Generation Rises Amid Higher Fuel Costs
Pakistan’s August power data presents two contrasting trends: electricity generation increased 5% YoY, while the average generation cost climbed 38%.
Hydropower remained the largest source of electricity, while imported coal, local coal, gas and wind also contributed to the increase in overall generation.
At the same time, sharply higher RLNG costs and increased reliance on some expensive generation sources kept fuel costs elevated.
The combination of higher generation and rising fuel expenses will remain important for electricity tariffs as regulators assess the August fuel charges adjustment.