The World Bank has approved 375.9 million dollars financing for improvement in Pakistan's electricity distribution system.
The approval has been given at the meeting of the World Bank's Board of Executive Directors, held in Washington.
According to a press release issued by the World Bank, the financing has been approved for Pakistan's Grid Stability Enhancement Project, aims to strengthen national power transmission network under the Boosting Energy Security through Transmission in Pakistan Multiphase Programmatic Approach.
The Project is the first phase of a 10-year program to help Pakistan modernize its electricity transmission network, reduce power outages, and bring more clean energy to homes, businesses and industries.
The project will install advanced equipment to stabilize the transmission grid and improve the flow of electricity at key substations.
This includes Static Synchronous Compensators, or STATCOMs, at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations.
These upgrades will help bring 640 MW of currently curtailed wind energy onto the grid, enabling the full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers.
They will also support the integration of approximately 491 MW of planned private sector-led renewable energy projects. In a total, these improvements will help Pakistan move toward its national commitment of achieving 60 percent renewable energy in its electricity mix by 2030, in line with the country's Nationally Determined Contribution under the Paris Agreement.
World Bank's Country Director for Pakistan Bolormaa Amgaabazar said Pakistan's energy challenges are deeply interconnected with its broader economic stability.
She said 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.
She further said the project will lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan's economy.
