World Bank Approves $375.9 Million Grid Stability Project
The World Bank has approved a $375.9 million Grid Stability Project to modernise and strengthen Pakistan's national electricity transmission system, according to an official statement. The project marks the first phase of the World Bank's 10-year Best Pakistan Programme and is aimed at improving electricity transmission, enhancing grid reliability and increasing the overall efficiency of the country's power sector.
Reducing Load Shedding and Upgrading Infrastructure
According to the statement, the initiative will help reduce load shedding by upgrading the national transmission network, including the installation of modern grid control systems at three major 500kV grid stations. The upgraded infrastructure will be designed to withstand climate-related risks such as extreme heat and flooding.
Integrating Renewable Energy
The project will facilitate the integration of 640 megawatts of previously stalled wind power into the national grid and enable the full transmission of 1,840MW of wind energy generated in southern Pakistan. In addition, the upgraded transmission network will connect 491MW of new private-sector renewable energy projects to the national grid, supporting the country's transition to cleaner sources of electricity.
Environmental and Economic Benefits
The World Bank said the project is expected to reduce carbon emissions by around 832,500 tonnes annually. The modernised transmission system is also expected to lower energy costs and improve the overall reliability of electricity supply.
Supporting Reforms in the Power Sector
It will also support the government's reform agenda in the power transmission sector, including efforts to strengthen the restructuring of the National Transmission and Despatch Company (NTDC).
