The World Bank’s Board of Executive Directors has approved $375.9 million in financing for Pakistan’s Grid Stability Enhancement Project, marking the first phase of a 10-year program to modernize the country’s electricity transmission network. This initiative under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) program aims to reduce power outages, lower electricity costs, and enable greater integration of clean energy for millions of households and industries.
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Pakistan’s power grid has long struggled with transmission bottlenecks and instability that limit reliable electricity delivery and underutilize renewable energy generation. The project will install advanced Static Synchronous Compensators (STATCOMs) at three major 500 kV substations, along with fixed reactors and capacitor banks across 26 grid substations to stabilize and improve electricity flow. These upgrades will unlock 640 MW of currently curtailed wind energy, enabling full use of 1,840 MW of wind capacity in southern Pakistan and supporting 491 MW of planned private sector renewable projects.
“We are investing in advanced technologies for more resilient transmission infrastructure that will help lay the groundwork for a power sector that works better for Pakistan’s economy,” said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. The project is expected to avoid approximately 832,500 tons of CO₂ emissions annually, more than 20.8 million tons cumulatively over 25 years, supporting Pakistan’s commitment to achieving 60% renewable energy in its electricity mix by 2030.
The initiative also advances the government’s transmission-sector reform agenda centered on restructuring the National Transmission & Dispatch Company (NTDC) into specialized successor entities, strengthening governance and operational performance. All new installations will meet climate-resilient specifications, including elevated platforms and equipment capable of operating in temperatures up to 55°C to ensure reliable performance during floods and heatwaves.
