World Bank Approves $375.9 Million for Pakistan Power Grid

The World Bank approved $375.9 million in financing for the Grid Stability Enhancement Project to modernize Pakistan's national power transmission network. This initiative represents the first phase of the 10-year Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach, which aims to reduce chronic power outages and lower electricity costs.

Technical upgrades include installing Static Synchronous Compensators (STATCOMs) at three 500 kV substations and adding fixed reactors and capacitor banks across 26 substations. These improvements will integrate 640 MW of currently curtailed wind energy and support 491 MW of planned private sector renewable projects, aiding Pakistan in its goal to reach a 60 percent renewable energy mix by 2030.

The project also supports the restructuring of the National Transmission and Despatch Company into specialized successor entities to improve governance. To address environmental threats, the funding mandates climate-resilient specifications designed to protect equipment from flooding and heatwaves reaching 55°C.