WASHINGTON: The World Bank’s Board of Executive Directors has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project, aimed at modernising the country’s electricity transmission network and improving energy security under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) programme.
The project marks the first phase of a 10-year initiative designed to strengthen Pakistan’s power transmission infrastructure, reduce electricity outages and enable greater integration of renewable energy into the national grid.
World Bank Country Director for Pakistan Bolormaa Amgaabazar said the investment would help address Pakistan’s energy challenges by improving grid resilience, lowering electricity costs and supporting a more reliable power sector for households, businesses and industries.
Pakistan’s electricity transmission network has long faced grid instability and transmission bottlenecks, limiting reliable power supply and preventing the full utilisation of clean energy generation. The project aims to address these challenges through targeted infrastructure upgrades.
Under the initiative, advanced grid-stabilising equipment, including Static Synchronous Compensators (STATCOMs), will be installed at three major 500kV substations, while fixed reactors and capacitor banks will be added across 26 grid substations to improve electricity flow and network stability.
The upgrades are expected to enable the transmission of 640MW of currently constrained wind power, allowing the full utilisation of 1,840MW of wind energy capacity in southern Pakistan. The project will also facilitate the integration of nearly 491MW of planned private sector renewable energy projects into the national grid.
According to the World Bank, the initiative will support Pakistan’s goal of generating 60 percent of its electricity from renewable sources by 2030. Over its projected 25-year lifespan, the project is expected to reduce carbon dioxide emissions by around 832,500 tonnes annually, exceeding 20.8 million tonnes in total.
Lead Energy Specialist Waleed Saleh Alsuraih said the project would strengthen energy security, accelerate renewable energy deployment and support the development of a modern, commercially oriented transmission sector while creating conditions for future private sector investment.
The project will also support the government’s transmission sector reform agenda by facilitating the restructuring of the National Transmission and Dispatch Company (NTDC) into specialised successor entities to improve governance, accountability and operational efficiency.
Recognising Pakistan’s vulnerability to climate-related risks, the project incorporates climate-resilient standards, including flood-resistant infrastructure and equipment capable of operating in temperatures of up to 55 degrees Celsius, helping ensure reliable performance during floods and extreme heat.
