World Bank approves $375.9 million grid stability project for Pakistan

ISLAMABAD: The World Bank (WB) has approved a $375.9 million Grid Stability Project for Pakistan aimed at modernising and strengthening the country’s national electricity transmission system, according to an official statement.

The project marks the launch of the first phase of the World Bank’s 10-year Best Pakistan Programme, which is expected to improve electricity transmission and enhance the overall efficiency of the power sector.

According to the statement, the initiative will help reduce load shedding and improve the performance of the national power system. Modern grid control systems will be installed at three major 500kV grid stations as part of the project.

The project will also enable the integration of 640 megawatts of stalled wind power into the national grid and facilitate the full transmission of 1,840 megawatts of wind energy from southern Pakistan.

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In addition, 491 megawatts of new renewable energy projects from the private sector will be connected to the national grid.

The World Bank said the project is expected to reduce carbon emissions by approximately 832,500 tonnes annually.

It will also support government reforms in the power transmission sector and strengthen the restructuring of the National Transmission and Despatch Company (NTDC).

The new grid infrastructure will be designed to withstand climate-related risks, including extreme heat and floods. The modern transmission system is expected to reduce energy costs and provide economic benefits, the statement added.