The World Bank has approved funding of US$375.9 million for Pakistan’s Grid Stability Enhancement Project, marking the first phase of a 10-year project called Boosting Energy Security through Transmission in Pakistan (BEST-PAK). This development is noteworthy not simply due to the substantial amount of funding, but also because it addresses one of Pakistan’s major energy issues that usually gets neglected: the challenge of transporting electricity from the place of generation to the place where it is needed.
When Pakistan’s electricity-related issue is mentioned, the talk usually revolves around generation. Having determined that there is a strong need for a more reliable and affordable electricity supply, most discussions related to power generation focus on the development of power plants, solar parks, wind farms, hydropower plants, etc. However, this is only one element of the electricity supply system. Electricity travels through transmission lines, substations, and distribution grids after being generated. If there is a loss in the transmission network, consumers will not receive electricity properly, even if there is enough power generated. A comparison that can illustrate that matter is a situation with a motorway. As you imagine a highway with a lot of cars on it, the problem here is not the number of vehicles, but rather the width of the road.
The purpose of the first phase of BEST-PAK is to strengthen the electricity backbone of the area. The project will use Static Synchronous Compensators, or STATCOMs, at three major substations of 500 kV. In addition to these devices, fixed reactors and capacitor banks will be installed in 26 grid substations. Although these notions seem to be highly technical, their idea is rather simple. They allow regulating electricity flows and managing voltage, making the network stable.
In connection with the increased production of renewable energy, it is very important to stabilise the electricity supply grid. Wind and solar energy can change in accordance with weather conditions, which means that the grid should be flexible enough to cope with these changes. The World Bank informs that the project can allow the inclusion of 640 MW of now-curtailed wind energy into the grid and can make the use of nearly 1,840 MW of the wind energy become real.
Now, think about wind farms generating electricity during strong winds. The turbines are working well, thus producing electricity. But in case the transmission corridor gets congested, the grid may not be able to accept, as well as transport, this electricity to the users. This leads to curtailment. To put it simply, while Pakistan might possess the wind, turbines, and potential electricity, the grid can become a limiting factor. BEST-PAK tries to fix this issue. It is also predicted that the project will assist in the integration of about 491 megawatts of planned investments into renewable energy. This can provide an overall economic effect. A reliable transmission network adds appeal to investing in renewable energy since the developers need to be assured that the energy produced will be able to connect to the grid and be delivered to the customers.
From Grid Investment to a Cleaner Energy System
Pakistan must take into consideration its energy transition as a whole system. Constructing renewable energy facilities is essential, but it is equally important to connect, manage, and deliver electricity from them. This is also an opportunity in environmental terms. According to the World Bank, this project could avoid approximately 832,500 tons of CO₂ emissions annually, which adds up to more than 20.8 million tons of CO₂ emissions over a 25-year period. The project will help Pakistan reach the national goal of achieving a 60 percent share of renewable energy in its energy mix by 2030. However, to achieve such goals, there is a need not only for declarations and investment plans but also for infrastructure created for this transition.
At the same time, high temperatures can exert extra strain on electrical systems. Floods can render substations and other infrastructures susceptible to damage from water. Therefore, the electricity grid has to be designed in such a way that it continues to function under the particular weather conditions expected in the country, e.g., when a reliable electricity supply is most essential.
Pakistan has to avoid perennial reliance on foreign specialists when it concerns crucial infrastructure for the country’s energy security
BEST-PAK also comprises a component which is related to institutional reforms. The programme has been helping Pakistan in transforming the National Transmission and Despatch Company (NTDC) into specialist successors. The purpose is to enhance the overall governance, accountability, operational performance, and sustainability of the transmission system in the long term. This part of the programme is as important as the infrastructure. If a country has a lot of sophisticated facilities but weak institutions, bad maintenance, slow decision making, and vague responsibilities, nothing will be achieved. This is what Pakistan has to deal with.
Big infrastructure projects may take a lot of time, despite having a clear plan. Besides, there may be problems with procurement, expenses, coordination, and technical issues. Therefore, it is vital for Pakistan to ensure clear implementation from the beginning. Responsibilities should be equally distributed between different government agencies, transmission organisations, consultants, contractors, regulators, and project managers. The procurement process should be fair and transparent. It should not just focus on spending the money. The aim is to get maximum benefit from investment. For instance, one cannot only quantify success by looking at the number of substations restored. Pakistan needs to inquire and analyse whether renewable-energy curtailment is being reduced, if grid reliability is improving, and how transmission limits are being lessened, as well as if clients are able to receive more dependable electricity.
Planning maintenance should also start from the very first stage. Today’s technology always requires specialists, spare parts, monitoring systems, and regular maintenance. Pakistan has to avoid perennial reliance on foreign specialists when it concerns crucial infrastructure for the country’s energy security.
Turning BEST-PAK Into an Opportunity for Young Engineers
Pakistan has a significant number of young people skilled in engineering and industrial research who can play a vital role in energy transition. Young engineers in electrical, power, environmental, computer engineering, and other specialties should have opportunities to join BEST-PAK projects, which could involve participating in internships, graduate engineering programmes, technical fellowships, field placements, and research partnerships. Potential areas of involvement may include grid stability analysis, forecasting renewable energy supply, measuring transmission losses, assessing climate threats, monitoring substations, measuring electricity consumption, and analysing digital grid management-related activities.
For instance, young engineers can design models for predicting the amount of wind energy produced in southern Pakistan to help grid operators prepare for upstream changes in the amount of green energy generated, including producing results on how the introduction of additional solar projects may change energy consumption and transmission requirements. Environmental engineers can measure the emission benefits of the project and calculate the climate risks imposed on the infrastructure. Graduates from the computer science area can study AI applications for breakdown detection and predictive maintenance.
The universities of Pakistan can form research collaborations with governmental bodies, transmission companies, energy producers, and overseas organisations associated with BEST-PAK. The educational institutions of Sindh can conduct research related to wind energy integration in southern Pakistan. The departments of electrical engineering can develop models for grid stability. The faculties of energy and environmental engineering can carry out investigations into renewable energy integration, emission reduction, and climate adaptability. All the necessary data and real engineering challenges should be available to students to ensure the value of their research work.
International funding can offer financial and advisory help. The governmental institutions can offer strategic guidance. The industry can bring practical knowledge. The universities can provide research activities. The young engineers would introduce new competence. By working together, the partners can attain the higher national capacity. The knowledge gained with the help of BEST-PAK has to be kept in Pakistan and foster future energy programmes.
Making a $375.9 Million Investment Deliver Long-Term Results
Acquiring the approval of 375.9 million dollars is one thing, but executing the initiative is entirely another thing. Pakistan has to toughen its act and start employing BEST-PAK as a long-term strategy as opposed to a mere development programme. The first point of focus has to be project governance. Pakistan has to ensure that accountability is clearly defined for all major parts of the programme, from procurement and construction to checking and running.
The next point is that the system of procurement and implementation should be transparent. Packages of financing on a large international scale always attract public attention, and it is for good reason that people want to know what is going on, what exactly is being constructed, and how much this enterprise is going to cost. Granting the participation of independent experts is another important issue that should be addressed right away. External experts and technical audits will help in identifying risks at an early stage of the process. Regular delivery of reports to the public about the working process will help develop public confidence in the ongoing project.
The future is much bigger than just the first phase of the project. The Grid Stability Enhancement Project is described by the World Bank as the first part of a ten-year BEST-PAK project. If the first stage succeeds, it will pave the way for further investments and the engagement of the private sector into energy projects. If Pakistan can showcase its success and timely delivery of large projects with good results, this will also help to boost confidence in the energy sector as a whole. Thus, the opportunity is much wider than just $375.9 million. It is an opportunity to secure the electricity system, attract renewable energy, lower pollution, increase resilience to climate change, and restart the engineering industry in the country.
The World Bank estimates that the project will be able to unleash about 640 megawatts of wind energy and boost around 491 megawatts of any upcoming renewable projects. These numbers do not only refer to technical capacity of energy. They talk about the production of energy that can increase the energy security of Pakistan.
The BEST-PAK project should not be treated like another infrastructure investment which measures success in terms of high expenditures and the number of machines put into operation. Rather, its success should be determined by the results Pakistan may achieve following the implementation of the project—i.e. whether more renewable electricity will be able to be delivered to consumers, will the existing bottlenecks in electricity transmission be removed, will Pakistan have a reliable electricity grid in times of disasters such as heatwaves and floods, will young Pakistani engineers gain international-level experience, will universities create research that can help solve national energy issues, will the electricity transmission sector become more efficient and financially viable?
What it requires is an innovative system that can connect these elements. BEST-PAK can assist in providing that connection. The $375.9 million financing is just the start, not the end of the journey. If Pakistan ensures good governance, good project management, university research, the participation of young engineers, transfer of technology, and serious climate planning, BEST-PAK could be very beneficial to the country. The main goal must be quite simple: a stronger electricity network, a larger supply of renewable energy, fewer emissions, improved energy security, and a more reliable electricity supply for households and companies in Pakistan.