Power Generation Down 17.4% in August As Fuel Cost Continues to Fall

In August 2024, the country experienced a vast drop in  power generation, with a 17.4% decrease as compared to the same month last year. This decline has raised concerns about the capability effect on electricity capability and costs for consumers and corporations alike. Let’s delve into the factors behind this downturn and what it means for the future.

Decline in Power Generation

The general energy technology in August 2024 fell to 13,179 gigawatts in keeping with the hour (GWh), a marked reduction from the 15,925 GWh recorded in August 2023. This drop isn’t best sizable on a 12 months year-over-year basis but also displays an 11.4% lower as compared to the preceding month’s power generation of 14,880 GWh.

This lower in power output is expected to have an effect on the overall energy ability expenses for the second quarter of the fiscal year 2025 (2QFY25). The reduction in power generation ought to result in extended expenses for capability costs, which may, in turn, effect power payments for both families and groups.

Fuel Costs and Their Impact

Interestingly, at the same time as electricity technology has dropped, the value of gasoline used for producing energy has also seen a decline. In August 2024, the common value of gasoline fell by 9.3% year-over-year, coming right down to Rs. 7.49 per unit from Rs. 8.27 per unit in August 2023. This lower represents a 16.4% drop from the preceding month’s common of Rs. 8.96 according to unit.

Despite the general fall in gas costs, the consequences for power generation remain complicated. The cost of furnace oil, that’s one of the extra costly gas sorts, stood at Rs. 30.32 per unit in August 2024. Conversely, nuclear fuel, that’s less costly, was a few of the cheaper alternatives during the same period.

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Breakdown of Power Generation Sources

Hydel Power

Hydel power, which constitutes a huge portion of the country’s electricity generation, reduced through 10.7% year-over-year. In August 2024, hydel-primarily based generation totaled 5,362 GWh, down from 6,006 GWh in August 2023. On a month-over-month basis, hydel generation saw a moderate increase of 0.4% from July 2024’s 5,341 GWh.

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Nuclear Power

Nuclear energy generation, on the other hand, experienced a nice shift. It increased by 7.3% year-over-12 months, reaching 2,190 GWh in August 2024 in comparison to 2,040 GWh in August 2023. Month-over-month, nuclear strength output rose by 10.2% from July 2024’s 1,988 GWh.

RLNG and Coal Power

The Regasified Liquefied Natural Gas (RLNG) power era saw a great drop, down 23.2% year-over-year to 2,106 GWh in August 2024 from 2,741 GWh in August 2023. The decline became even more suggested on a month-over-month basis, with a 29.1% reduction in comparison to July 2024.

Coal (imported) electricity also fell with the aid of 20.3% year-over-year, totaling 1,306 GWh in August 2024, down from 1,638 GWh in August 2023. This represents a 13.3% decrease from the 1,506 GWh recorded the preceding month.

Looking Ahead

The decline in energy generation coupled with fluctuating gasoline prices gives a combined situation for the power quarter. While lower gas charges might appear fantastic, the reduced strength output and potential increase in ability expenses may want to pose challenges for power purchasers.

As the strength quarter navigates those changes, it’ll be essential for both policymakers and customers to stay knowledgeable about the evolving dynamics of electricity generation and gas costs. Keeping an eye fixed on those tendencies will help in making plans and adapting to the future energy landscape effectively.

This detailed evaluation aims to provide a clean expertise of the current electricity generation scenario and its implication, supporting readers who hold close the wider impact of these changes on their energy needs.