ISLAMABAD: The World Bank has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project aimed at strengthening the country’s electricity transmission network, reducing power outages and improving the integration of renewable energy into the national grid.
The project is the first phase of the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) programme, a 10-year initiative designed to modernise Pakistan’s power transmission infrastructure and improve the reliability of electricity supply for households, businesses and industries.
According to a statement by the World Bank, the project will introduce advanced grid technologies to enhance system stability, improve electricity flow at key substations and address transmission bottlenecks that have restricted the delivery of reliable power across the country.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said the country’s energy challenges were closely linked to its broader economic stability.
“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,” she said.
The World Bank said Pakistan’s electricity network had faced persistent challenges, including grid instability, transmission constraints and underutilisation of clean energy generation capacity. These issues have contributed to frequent power disruptions, increased electricity costs and economic losses.
Under the project, Pakistan will install modern equipment to stabilise the transmission system and improve electricity distribution from major substations. The upgrades are expected to enable the integration of 640 megawatts (MW) of currently curtailed wind energy into the national grid.
The improvements will allow the country to fully utilise around 1,840MW of wind power capacity in southern Pakistan by facilitating the transfer of electricity to major demand centres.
The project will also support the connection of approximately 491MW of planned private-sector renewable energy projects, helping Pakistan move closer to its target of achieving 60 per cent renewable energy in its electricity mix by 2030 under its climate commitments linked to the Paris Agreement.
The World Bank estimated that the initiative could help avoid around 832,500 tonnes of carbon dioxide emissions annually, amounting to more than 20.8 million tonnes over 25 years.
Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank’s BEST-PAK programme, said a reliable and modern transmission grid was essential for Pakistan’s energy future.
He said the project would create conditions for large-scale clean energy deployment, stronger energy security and a more commercially oriented transmission sector through infrastructure investment and institutional reforms.
The World Bank added that the project would also support Pakistan’s ongoing transmission-sector reforms, including the restructuring of the National Transmission and Dispatch Company (NTDC) into specialised successor entities.
The initiative will focus on improving governance, accountability, operational efficiency and the long-term sustainability of the power sector while encouraging greater private sector participation.
The bank also highlighted Pakistan’s vulnerability to climate-related risks, including floods and extreme heat events. It said the project’s infrastructure would be designed according to climate-resilient standards, including elevated platforms to reduce flood risks and equipment capable of operating in temperatures of up to 55 degrees Celsius.
The World Bank said these measures would help ensure more reliable electricity transmission during extreme weather conditions, including monsoon seasons and heatwaves.
