ISLAMABAD: The World Bank has approved $375.9 million for upgradation of Pakistan’s electricity distribution system. This has been decided at a meeting of the World Bank’s Board of Executive Directors held in Washington.
The World Bank press released said the financing would strengthen national power transmission network under the Pakistan’s Grid Stability Enhancement Project. The Project is the first phase of a 10-year program to help Pakistan modernize its electricity transmission network, reduce power outages, and bring more clean energy to homes, businesses and industries.
The project includes Static Synchronous Compensators, or STATCOMs, at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations. These upgrades will help bring 640 MW of currently curtailed wind energy onto the grid, enabling the full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers.
In a total, these improvements will help Pakistan move toward its national commitment of achieving 60 percent renewable energy in its electricity mix by 2030, in line with the country’s Nationally Determined Contribution under the Paris Agreement. The WB’s Country Director for Pakistan Bolormaa Amgaabazar said Pakistan’s energy challenges are interconnected with its broader economic stability, adding this project will contribute to reducing electricity costs, bring more renewable energy onto the grid.
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