ADB approves $200m to upgrade Pakistan's power grid

December 11, 2024 (MLN): The Asian Development Bank (ADB) has approved a $200 million loan to modernize power distribution infrastructure in Pakistan and improve distribution companies’ ability to deliver reliable electricity.  

ADB’s Power Distribution Strengthening Project aims to upgrade and modernize distribution systems to meet the country’s rapidly growing electricity demand, as per the press release. 

The project will focus on reducing significant energy losses during transit and enhancing the resilience of infrastructure against climate change and disaster-related risks.

In its initial phase, the project will support three major distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO).

This initiative aims to pave the way for more efficient and sustainable energy delivery across these regions.

“This project is part of ADB’s ongoing efforts to address challenges in Pakistan’s power sector,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“Reliable grid-connected electricity improves the quality of life, he added.

Yevgeniy Zhukov further said, "The loss reduction and revenue protection measures supported by this project will also help reduce the power sector’s financial losses alleviating at least one source of strain on the country’s economy.”   

The project will fund the installation of at least 332,000 advanced metering infrastructure, along with data management and communication systems.

Additionally, it will support the deployment of at least 15,800 online transformer performance monitoring systems in LESCO, MEPCO, and SEPCO.

Furthermore, the voltage of four grid stations in SEPCO will also be upgraded from 66 kilovolt (kV) to 132 kV, a critical enhancement that will mitigate losses across the transmission system and address growing electricity demand.

In LESCO, at least 25 grid stations will be constructed and modernized with provision of critical equipment. High-loss 11 kV feeder lines will be replaced with aerial bundled conductor cables, and feeder line configuration will be improved.

“These upgrades will reduce losses, enhance revenue collection, and provide distribution companies with real-time data on electricity consumption and grid performance,” said ADB Principal Energy Specialist Seung Duck Kim.

“In the event of extreme weather, they can help identify and isolate faults quickly, reducing the time required for recovery and minimizing outages", Seung Duck Kim added.

The project will also study reform actions and policy recommendations that would improve the operational efficiency and overall performance of these three distribution companies.

Pakistan was a founding member of ADB. Since 1966, ADB has committed over $52 billion in public and private sector loans, grants, and other forms of financing.

These funds aim to promote inclusive economic growth in Pakistan and improve the country’s infrastructure, energy and food security, transport networks, and social services.

Copyright Mettis Link News