ISLAMABAD: The World Bank has approved $375.9 million in financing to enhance Pakistan’s national power transmission network. This initiative, called the Grid Stability Enhancement Project, is part of a 10-year effort to modernize Pakistan’s electricity grid, reduce power outages, and increase the use of clean energy.
According to World Bank, the project marks the first phase of the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach. It aims to address Pakistan’s energy challenges, which are closely tied to the country’s economic stability. Bolormaa Amgaabazar, World Bank Country Director for Pakistan, stated that the investment in advanced technologies would reduce electricity costs and enhance the integration of renewable energy into the grid, benefiting households, businesses, and industries.
Pakistan’s electricity network has faced long-standing issues with grid instability and transmission bottlenecks, resulting in frequent outages and underutilization of clean energy. The project plans to install advanced equipment at key substations, including Static Synchronous Compensators (STATCOMs), fixed reactors, and capacitor banks, to stabilize the grid and improve electricity flow. These efforts are expected to integrate 640 MW of currently curtailed wind energy and support 491 MW of planned private sector renewable energy projects, moving Pakistan closer to its goal of achieving 60 percent renewable energy in its electricity mix by 2030.
Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank’s BEST-PAK program, emphasized that a reliable and modern transmission grid is crucial for Pakistan’s energy future. The project also supports the government’s transmission-sector reform agenda, focusing on restructuring the National Transmission & Dispatch Company (NTDC) to enhance governance and operational performance.
Given Pakistan’s vulnerability to climate-related risks, such as flooding and extreme heat, the project incorporates climate-resilient designs for new installations. These measures aim to ensure reliable performance during monsoon seasons and heatwaves, contributing to the long-term sustainability of the power sector.