ISLAMABAD: The World Bank has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project to strengthen the national power transmission network, reduce outages and bring more renewable energy onto the grid, the Bank said on Thursday.
Pakistan’s grid has long struggled with instability and transmission bottlenecks that leave clean energy generation underutilized, with the upgrades expected to bring 640 megawatts of currently curtailed wind energy onto the grid and enable the full use of 1,840 megawatts (MW) of wind capacity in southern Pakistan by moving power to major demand centers.
The $375.9 million financing from the World Bank comes as the first phase of a 10-year program, Boosting Energy Security through Transmission in Pakistan (BEST-PAK), to modernize the South Asian country’s electricity transmission network.
“Pakistan’s energy challenges are deeply interconnected with its broader economic stability,” said Bolormaa Amgaabazar, the World Bank country director for Pakistan.
“By investing in advanced technologies for more resilient transmission infrastructure, this project will contribute to reducing electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan’s economy.”
The project will install Static Synchronous Compensators, or STATCOMs, at three major 500 kV substations, along with fixed reactors and capacitor banks across 26 grid substations, according to the World Bank statement.
It will also support the integration of approximately 491 MW of planned private sector-led renewable energy projects, helping Pakistan toward its national commitment of 60 percent renewable energy in its electricity mix by 2030 under the Paris Agreement.
Over its lifetime, the project is expected to avoid approximately 832,500 tons of CO2 emissions each year, or more than 20.8 million tons cumulatively over 25 years.
“A reliable and modern transmission grid is essential for Pakistan’s energy future,” said Waleed Saleh Alsuraih, lead energy specialist for the World Bank’s BEST-PAK program in Pakistan.
“As the first phase of the BEST-PAK program, it unlocks a pathway to large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector.”
The financing also supports the government’s plan to break up the National Transmission and Dispatch Company (NTDC) into separate entities, part of a wider effort to reform how the power sector is governed and run.
The World Bank said Pakistan is among the countries most exposed to climate-related risks, including river and urban flooding and extreme heat. All new installations under the project must meet climate-resilient specifications, including elevated platforms to mitigate flood exposure and equipment designed to operate in temperatures of up to 55 degrees Celsius.
Last month, a heatwave pushed temperatures in Sindh’s Sukkur and Dadu districts to 50°C.
