PakistanS Power Generation Landscape: December 2025 Analysis
Islamabad – Pakistan’s power generation reached 8,488 gigawatt-hours in December 2025, representing a 9% increase year-over-year, according to recently released data from the National Electric Power Regulatory Authority (Nepra). While output rose 5% compared to November 2025, it remained lower than the peak generation levels observed during the summer months of the previous year. This report delves into the details of Pakistan’s December 2025 power generation, analyzing the contributing fuel sources, cost fluctuations, and potential implications for the nation’s energy sector.
Rising Electricity Costs
Despite the increase in overall generation, the average cost of electricity production experienced a notable climb in December, reaching Rs9.6 per kilowatt-hour. This figure reflects a 2% increase compared to December 2024 and a substantial 56% jump from November 2025. JS Research analysts attribute this cost escalation primarily to a marked decline in hydropower generation.
Hydropower Decline and Thermal Reliance
Hydropower output plummeted by 51% in December compared to the previous month, contributing only 18% to the national energy mix. This reduction necessitated a greater reliance on more expensive thermal power sources to meet the country’s energy demands. The seasonal decrease in hydropower is a recurring pattern during the winter months, highlighting the need for diversified energy resources.
Dominance of coal and Nuclear Power
The December 2025 energy mix was largely dominated by coal and nuclear power, accounting for 24% and 25% respectively. Regasified Liquefied Natural gas (RLNG) contributed 17% to the mix. Notably, coal-fired power generation witnessed a substantial increase of 125% year-over-year, while nuclear power output experienced a modest growth of 3%.
Shift Away from Furnace Oil
The data underscores the government’s ongoing efforts to reduce dependence on furnace oil, historically the most expensive component of Pakistan’s power generation portfolio. This strategic shift aims to lower overall energy costs and improve the efficiency of the power sector.
Limited Renewable Energy Penetration
Renewable energy sources – including wind, solar, and bagasse – continue to represent a relatively small portion of Pakistan’s energy mix. Wind power accounted for 1.9%, solar for 0.9%,and bagasse for 1.1% of total generation in December. This limited penetration highlights the potential for further investment and development in clean energy technologies to enhance the sustainability and resilience of Pakistan’s power sector.
Keywords: Pakistan power generation,Nepra,electricity cost,hydropower,thermal power,coal power,nuclear power,renewable energy,energy mix,RLNG,furnace oil,Pakistan energy sector,energy statistics,power output,energy policy.