Washington: The World Bank has sanctioned $375.9 million in financing to enhance Pakistan’s electricity distribution system, a move aimed at addressing power outages and integrating more renewable energy into the national grid.
According to Radio Pakistan, the approval came during a meeting of the World Bank’s Board of Executive Directors held in Washington. The funds are earmarked for the Grid Stability Enhancement Project, the initial phase of a 10-year initiative designed to upgrade Pakistan’s power transmission network. This project is part of the Boosting Energy Security through Transmission in Pakistan Multiphase Programmatic Approach, which seeks to modernize the network and increase the supply of clean energy to various sectors.
The project will involve the installation of advanced equipment such as Static Synchronous Compensators (STATCOMs) at three 500 kV substations, along with fixed reactors and capacitor banks at 26 grid substations. These enhancements aim to stabilize the transmission grid and improve electricity flow, thereby integrating 640 MW of previously curtailed wind energy and enabling the full use of 1,840 MW of wind capacity in southern Pakistan. Additionally, the upgrades will support the integration of approximately 491 MW of forthcoming private sector-led renewable energy projects, aiding Pakistan in its goal to achieve 60 percent renewable energy in its electricity mix by 2030, in alignment with its Nationally Determined Contribution under the Paris Agreement.
Bolormaa Amgaabazar, the World Bank’s Country Director for Pakistan, emphasized that the nation’s energy challenges are closely tied to its economic stability. She stated that by investing in advanced technologies for a more resilient transmission infrastructure, the project would contribute to reducing electricity costs and increasing the grid’s capacity to accommodate renewable energy. Furthermore, the project aims to establish a power sector that benefits households, businesses, industries, and the overall economy of Pakistan.