Electricity generation costs in Pakistan vary sharply across different power sources, with new details presented in the Senate showing a substantial difference between the reported cost of hydropower from WAPDA dams and electricity generated by some private power plants.
According to documents presented to the Senate, WAPDA dams generated electricity at rates as low as Rs. 2.70 per unit, while the cost at some independent power producers (IPPs) exceeded Rs. 34 per unit.
The figures provide a comparison of generation costs across several electricity sources and highlight the different costs associated with hydropower, nuclear energy, domestic coal and imported coal-based plants.
During the period covered by the documents, the government paid Rs. 186 billion to WAPDA for 34.5 billion units of electricity. In comparison, payments to private IPPs reached Rs. 1.04 trillion for 49.8 billion units.
The documents also reported that more than Rs. 1.3 trillion was paid to IPPs in capacity charges during the current fiscal year. Capacity payments are separate from the per-unit generation costs cited in the comparison.
Among the power plants listed, the Tarbela Hydel Power Project recorded the lowest generation cost at Rs. 2.70 per unit. Mangla Hydel Power Project followed with a reported cost of Rs. 3.75 per unit.
Across the WAPDA dams included in the data, the average electricity generation cost was reported at Rs. 5.39 per unit. These figures place hydropower among the lower-cost sources listed in the Senate documents.
Nuclear generation was also reported at a comparatively lower rate. The Chashma Nuclear Power Plant generated electricity at Rs. 6.76 per unit, according to the documents.
The reported cost increased for coal-based electricity. Power generated using domestic Thar coal was listed at Rs. 19.03 per unit, considerably above the reported average cost of electricity generated by the listed WAPDA dams.
Plants using imported coal recorded still higher figures. The Sahiwal Coal Power Plant had a reported generation cost of Rs. 34.17 per unit, while Port Qasim’s reported cost stood at Rs. 32.16 per unit.
The reported difference between Rs. 2.70 per unit at Tarbela and Rs. 34.17 per unit at Sahiwal illustrates the wide variation in electricity generation costs across Pakistan’s power sector.
The figures also show that comparing total payments alone does not provide a complete picture of electricity costs, because WAPDA and private IPPs supplied different quantities of electricity during the period under review.
WAPDA supplied 34.5 billion units against payments of Rs. 186 billion, while private IPPs supplied 49.8 billion units against payments of Rs. 1.04 trillion. These figures therefore need to be considered alongside the respective electricity volumes and payment structures.
The Senate data comes amid continued attention on Pakistan’s electricity costs, power-sector payments and the financial pressures associated with the country’s energy system.
For consumers and businesses, the cost of electricity generation is an important part of the broader discussion surrounding power tariffs and the overall cost of electricity. However, generation costs represent only one component of the final electricity price.
The latest figures provide a snapshot of the reported costs of different generation sources and show particularly large differences between some hydropower projects and coal-based power plants.
The data presented to the Senate is likely to remain relevant as policymakers examine Pakistan’s power generation mix, payments to power producers and ways of managing the financial costs associated with electricity generation.
