The World Bank has approved $375.9 million in financing to help Pakistan modernize its electricity transmission network, marking the first phase of a long-term program to improve grid reliability and support the country's clean energy transition.
The funding, approved by the World Bank's Board of Executive Directors, will finance the Grid Stability Enhancement Project under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) program, the bank said in a statement Thursday.
The project is the first phase of a 10-year program designed to modernize Pakistan's electricity transmission network, reduce power outages and enable greater integration of renewable energy into the grid.
Pakistan's transmission system has long faced capacity constraints that contribute to frequent outages and limit the integration of renewable energy sources.
Under the project, advanced grid-stabilizing equipment will be installed at key substations across the country, including Static Synchronous Compensators (STATCOMs) at three 500-kilovolt substations, along with additional equipment to improve voltage stability and electricity flows.
According to the World Bank, the upgrades will enable 640 megawatts (MW) of currently curtailed wind generation to be delivered to the grid, allowing the full utilization of 1,840 MW of installed wind capacity in southern Pakistan. The strengthened transmission network is also expected to accommodate nearly 500 MW of new privately financed renewable energy projects.
The project also includes measures to improve the resilience of Pakistan's electricity grid against extreme weather events. Pakistan is among the countries most vulnerable to climate-related disasters, including floods and extreme heat.
Under the program, new transmission infrastructure will be designed to withstand flooding and temperatures of up to 55 degrees Celsius, helping maintain grid operations during monsoon seasons and heatwaves.
"Pakistan's energy challenges are deeply interconnected with its broader economic stability," said Bolormaa Amgaabazar, the World Bank's 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 Pakistan's overall economy," Amgaabazar added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
