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IPPs electricity cost crosses Rs34 per unit

Details of electricity generation costs across various power plants across Pakistan have been presented in the Senate, showing a significant difference between hydropower generation costs and those of private power producers.

According to documents submitted to the Senate, electricity generated from WAPDA-operated dams costs around Rs2.70 per unit, while the generation cost of electricity from private independent power producers (IPPs) has exceeded Rs34 per unit.

The documents showed that the government paid WAPDA around Rs186 billion for 34.5 billion units of electricity during the period under review. In comparison, private IPPs received around Rs1,040 billion for generating 49.8 billion units.

The documents further revealed that more than Rs1.3 trillion was paid to IPPs in capacity charges during the ongoing financial year.

Among the country’s power generation sources, the Tarbela Hydel Power Project was listed as the cheapest, producing electricity at around Rs2.70 per unit. The Mangla Hydel Power Project generated electricity at approximately Rs3.75 per unit.

The combined average generation cost from WAPDA’s dams was recorded at Rs5.39 per unit, according to the details provided to the Senate.

Nuclear power also remained among the lower-cost sources. The Chashma Nuclear Power Plant supplied electricity at around Rs6.76 per unit.

Meanwhile, electricity generated from locally sourced Thar coal cost approximately Rs19.03 per unit.

The figures showed higher costs for plants using imported coal. The Sahiwal coal power plant generated electricity at Rs34.17 per unit, while the Port Qasim power plant recorded a cost of Rs32.16 per unit.

The data presented in the Senate highlights substantial differences in electricity generation costs depending on the source of fuel, technology and type of power plant.

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