Pakistan’s Power Generation Rises in December 2025, But Reliance on fossil Fuels Persists
Islamabad – Pakistan’s power generation increased to 8,488 gigawatt-hours (GWh) in December 2025, a 9% rise compared to the same period last year, according to data released by the National Electric Power Regulatory Authority (Nepra). https://www.nepra.org.pk/ While output also saw a 5% increase from November 2025, it remained lower than the peak generation levels experienced during the summer months of the previous year. This growth, however, came at a cost, with the average electricity generation cost climbing to Rs9.6 per kilowatt-hour (kWh) – a 2% increase year-on-year and a notable 56% jump from November 2025.
The escalating cost of electricity is largely attributed to a considerable decline in hydropower generation,which fell by 51% in December compared to the previous month. This reduction forced the nation to lean more heavily on comparatively expensive thermal sources, highlighting Pakistan’s ongoing vulnerability to fluctuations in water availability and the need for a more diversified energy portfolio. Hydropower contributed just 18% to the overall energy mix in December, underscoring this dependence.
Fossil Fuels Dominate the Energy Landscape
December’s power generation mix was heavily dominated by coal and nuclear energy, accounting for 24% and 25% respectively. Coal-fired power generation experienced a dramatic 125% increase compared to December 2024, signaling a continued reliance on this fossil fuel despite global efforts to transition towards cleaner energy sources. Nuclear power output saw a more modest growth of 3%.
The data also reflects a intentional shift away from furnace oil, historically the most expensive component of Pakistan’s power generation. This move aligns with the government’s stated objectives to reduce costs and improve energy efficiency. However,the increased reliance on coal raises concerns about Pakistan’s commitment to reducing its carbon footprint and mitigating the impacts of climate change. https://www.climate.gov/news-features/understanding-climate-change/climate-change-global-temperature
Renewable Energy Remains a Marginal Player
Despite growing global momentum towards renewable energy, its penetration into Pakistan’s national grid remains limited. Wind, solar, and bagasse – derived from sugarcane processing – contributed only 1.9%, 0.9%, and 1.1% respectively to the total energy mix in December. This represents a significant gap between Pakistan’s renewable energy potential and its current utilization.
Pakistan possesses substantial renewable energy resources, especially in solar and wind power. The country’s geographical location receives abundant sunshine, and its coastal areas offer strong wind corridors. However, several factors hinder the widespread adoption of these technologies, including:
* High Initial Costs: The upfront investment required for renewable energy projects can be substantial, posing a barrier for both public and private sector developers.
* Intermittency Issues: Solar and wind power are intermittent sources, meaning their output fluctuates depending on weather conditions. this requires investments in energy storage solutions and grid infrastructure to ensure a reliable power supply.
* land Acquisition challenges: Securing suitable land for large-scale renewable energy projects can be complex and time-consuming, often involving land ownership disputes and environmental concerns.
* Regulatory Hurdles: Streamlining the regulatory processes for renewable energy projects is crucial to attract investment and accelerate deployment.
* Transmission Infrastructure: The existing transmission infrastructure is often inadequate to efficiently transport electricity generated from remote renewable energy sites to demand centers.
The Path Forward: Diversification and investment
Addressing these challenges is critical for Pakistan to achieve its energy security goals and transition towards a more sustainable energy future. Experts emphasize the need for a complete energy policy that prioritizes diversification, investment in renewable energy infrastructure, and grid modernization. https://www.irena.org/
“pakistan needs to aggressively pursue renewable energy growth to reduce its dependence on imported fossil fuels and mitigate the risks associated with climate change,” says Dr. Aisha Khan, an energy policy analyst at the Sustainable Development Policy Institute (SDPI).“This requires a concerted effort from the government,private sector,and international development partners.”
Specifically,the following steps are crucial:
* Incentivizing Renewable Energy Investment: offering tax breaks,subsidies,and feed-in tariffs can attract private sector investment in renewable energy projects.
* Developing Energy Storage Solutions: Investing in battery storage and pumped hydro storage can help address the intermittency challenges of solar and wind power.
* Upgrading grid Infrastructure: Modernizing the transmission and distribution network is essential to efficiently integrate renewable energy sources into the grid.
* Streamlining Regulatory Processes: Simplifying the permitting and approval processes for renewable energy projects can reduce project development timelines and costs.
