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Pakistan's power shortages ease with a rebound in hydro-generation

Pakistan's power'shortages' have decreased from six hours daily to less than three, after water release from dams almost quadrupled, pushing hydropower output to its highest level in days, said a spokesperson from the country's "power" division on Friday.

The hydropower generation jumped to 4,100 Megawatts (MW), from 1,800MW, before the dam releases. The increased output eased grid restrictions and allowed 400 MW more to be transmitted out of the south.

This improvement is a result of Pakistan's electricity shortage, which doubled to 3,400 megawatts this week. The shortfall caused six to seven hour outages across parts of northern Pakistan.

In an interview with Awais Leghari on Thursday, the shortfalls are primarily due to a decline of 48% in annual hydropower production as 'provinces have not asked for water releases from Dams due to heavy rainfall reducing irrigation needs.

The cause of the increased water release was not immediately apparent.

As the monsoon season begins, hydropower generation will likely continue to be high unless there are more rains.

No immediate plans to buy spot LNG

Pakistan, who is trying to mediate a peaceful end to the Iran War, thought that a stoppage of LNG imports would have a minimal effect compared to the "widespread power outages" which followed Russia's invasion in Ukraine in 2022. This assessment didn't take into account the decline in hydropower.

Leghari stated that Pakistan does not have immediate plans to buy LNG on the spot markets, but will instead rely upon fuel oil, as well as a recovery of hydropower, in order to ease outages. Pakistan partially offset shortfalls up to 2,500MW after Qatar suspended LNG supply by running furnace oil plants at full capacity. "The cargoes that will be offloading the LNG? and then all the expenses of the terminal... this easily adds an additional $4-$5 on the spot price." "I think furnace oil might be a bit cheaper," Leghari said in an interview with?Thursday.

He said, "We disciplined ourselves to be able bear the discomfort and not allow the prices to actually drive up inflation." Reporting by Ariba and Sudarshan Varadhan; Editing by Philippa and Toby Chopra

(source: Reuters)