By Ijaz Kakakhel

Electricity generation from four major Thar-based power plants running on indigenous coal rose nearly 12.8% year over year in August 2026, reflecting increased use of the country’s domestic lignite resources for power generation.

According to official data available with Wealth Pakistan, the four power plants generated a combined 1,626.15 million kilowatt-hours (kWh), or about 1,626 GWh, in August 2026, compared with 1,441.21 million kWh, or 1,441 GWh, in August 2025.

The largest contribution came from the 1,320MW Shanghai Electric power project, which generated 814.05 million kWh in August 2026, up from 763.62 million kWh in August 2025, representing a year-on-year increase of about 6.6%.

Generation from the 660MW Engro Powergen Thar Limited (EPTL) rose more sharply, reaching 413.64 million kWh in August 2026 against 355.60 million kWh in the same month last year. This represented an increase of approximately 16.3%.

Similarly, the 330MW Thar Energy Limited generated 200.76 million kWh during August 2026 compared with 165.73 million kWh in August 2025, an increase of about 21.1%.

The 330MW ThalNova Power Thar Limited recorded the strongest percentage increase among the four plants. Its generation rose by around 26.5%, from 156.25 million kWh in August 2025 to 197.70 million kWh in August 2026.

The figures underscore the increasing role of indigenous coal in Pakistan’s electricity supply as the country seeks to reduce its exposure to imported fuels and associated foreign-exchange pressures.

A brief report on Thar coal development and utilization said the Sindh government, through its Energy Department, has facilitated the development of an integrated mine-to-power supply chain, allowing locally produced lignite to be supplied directly to power-generation projects.

In Thar Coal Block-I, Sino Sindh Resources Limited has developed a 7.8 million tons per annum (MTPA) open-pit mine supplying coal to the 1,320MW power plant. The integrated mining and power project achieved commercial operations in February 2023 with an investment of around $2.9 billion.

In Block-II, Sindh Engro Coal Mining Company has developed a mining capacity of around 7.6 MTPA under its first two phases and is pursuing expansion to 11.2 MTPA under Phase-III.

The report said projects based on Thar coal represent around 3,300MW of installed generation capacity, including the 660MW Lucky Electric plant at Port Qasim, while 2,640MW is located within the Thar coalfield itself.

During FY2025-26, Thar-coal-based power plants generated approximately 15,813 GWh of electricity, highlighting the growing contribution of domestic coal to Pakistan’s power-generation mix.

Credit: INP-WealthPk