Pakistan Power Division Reports Record January Generation Performance

In a significant development for Pakistan's energy sector, the Power Division announced that the national power system achieved its highest-ever January generation performance in 2026, reaching a peak of 16,584 megawatts (MW) and an average generation of 12,239 MW. This marks a 13% increase from January 2025 and a total electricity generation of 9,106 gigawatt-hours (GWh), surpassing projections by 14%. However, the National Electric Power Regulatory Authority (NEPRA) reported that the power sector paid PKR 1.806 trillion in capacity charges during the fiscal year 2024-25, accounting for about 61% of the total power purchase cost, which stood at PKR 2,943.21 billion. This high capacity charge, driven by low utilization rates of thermal plants averaging just 43.4%, raises concerns about the sustainability of the energy sector despite operational successes. NEPRA described the per-unit Capacity Purchase Price (CPP) as 'notably high' at approximately PKR 14.3 per kilowatt-hour, contributing to elevated electricity tariffs across the country.