LAHORE: Pakistan’s installed power generation capacity has reached 46,605MW in FY25, yet consumers continue to bear the weight of high electricity costs due to capacity payments to idle plants—estimated at Rs12 to Rs15 per unit.
The Economic Survey revealed that while electricity demand peaks in summer, it falls sharply in winter, leaving excess capacity unused but still paid for through power purchase agreements. The government has begun addressing this by halting new power projects and ending contracts with some independent power producers (IPPs).
The energy mix is slowly shifting, with hydel, nuclear, and renewables making up 53.7 percent of power generation, while thermal sources still account for 55.7 percent of installed capacity. Total power generation stood at 90,145GWh from July to March FY25, while consumption hit 80,111GWh, with households using nearly half.
Officials expect the burden of capacity payments to ease gradually, especially as outdated plants are phased out and the grid leans more on efficient, indigenous sources.