Pakistan’s electricity generation dropped sharply by 15% in February 2025, reaching 6,945 GWh compared to 8,153 GWh in January. This decline reflects a slowdown in industrial and commercial activities, as lower power consumption often indicates reduced economic activity. On a year-on-year basis, power generation also fell by 3% from 7,130 GWh recorded in February 2024, highlighting an ongoing downward trend in energy demand.
Experts attribute this decline to two major factors: high electricity costs and a growing shift toward solar energy. Rising power tariffs have made grid electricity unaffordable for many businesses and households, pushing them to adopt solar solutions. In response, the government recently reduced the buyback rate for excess solar energy from Rs27 per unit to Rs10 per unit, aiming to manage the financial impact on traditional grid users.
Despite the drop in electricity production, the overall cost of power generation decreased by 30% in February, falling to Rs7.57 per kWh from Rs10.79 per kWh in January. This cost reduction can be attributed to lower reliance on expensive fuel-based power generation. Among the major contributors to the energy mix, hydropower accounted for 27.1%, followed by nuclear energy at 26.6% and locally sourced coal at 15%. Renewable sources such as wind, solar, and bagasse collectively contributed around 4.8%.
The rising adoption of renewable energy, particularly solar power, is reshaping Pakistan’s energy landscape. While this shift reduces electricity costs for many consumers, it also challenges policymakers to balance the financial sustainability of the national grid. With more people moving to solar, the government will need to address potential revenue shortfalls, grid management issues, and long-term energy planning.
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