World Bank Approves $375.9 Million Power Grid Project for Pakistan to Reduce Load Shedding
Islamabad: The World Bank has approved a $375.9 million Grid Stability and Efficiency Improvement Project for Pakistan, aimed at modernizing the country’s electricity transmission network, reducing load shedding, and improving the overall performance of the national power system.
According to a World Bank statement, the project is part of the first phase of its 10-year Country Partnership Framework (CPF) for Pakistan and is designed to strengthen the national grid by making it more reliable, efficient, and resilient.
Under the project, advanced STATCOM (Static Synchronous Compensator) systems will be installed at three major 500-kilovolt grid stations to enhance voltage control and improve grid stability.
The initiative will also enable the integration of 640 megawatts of currently constrained wind power, including projects in Jhimpir, into the national grid. In addition, it will facilitate the uninterrupted transmission of 1,840 megawatts of wind-generated electricity from southern Pakistan to the rest of the country.
The project will further connect 491 megawatts of new privately developed renewable energy projects to the national grid, supporting Pakistan’s transition toward cleaner energy.
The World Bank estimates that increased use of renewable energy under the project could reduce annual carbon emissions by approximately 832,500 tons, contributing to Pakistan’s climate goals.
The upgraded transmission infrastructure is also expected to reduce transmission losses, lower the overall cost of electricity, and support ongoing reforms in Pakistan’s power transmission sector, including the restructuring of the National Transmission and Dispatch Company (NTDC).
Additionally, the new grid infrastructure will be designed to withstand extreme weather events such as heatwaves and floods, helping ensure a more resilient and uninterrupted electricity supply across the country.
