The Asian Development Bank (ADB) has sanctioned a $200 million loan aimed at upgrading Pakistan’s power distribution infrastructure to enhance the reliability and efficiency of electricity supply across the country, according to the press release.
The Power Distribution Strengthening Project focuses on modernizing outdated electricity distribution systems to better meet Pakistan’s growing energy demands. A major goal of the project is to minimize energy losses during transmission and boost the grid’s resilience to climate-related challenges.
As per the press release, as part of the initiative, ADB will assist three key distribution companies—Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO)—with critical infrastructure upgrades. These upgrades are expected to improve energy efficiency and sustainability, providing more reliable electricity to consumers in these regions.
“This project supports ADB’s ongoing commitment to addressing the power sector challenges in Pakistan,” said Yevgeniy Zhukov, ADB’s Director General for Central and West Asia. “By reducing energy losses and improving grid performance, we will not only boost the economic outlook but also improve the quality of life for millions of people.”
Key components of the project include the installation of 332,000 advanced meters and 15,800 online transformer monitoring systems, which will improve the ability to track and manage electricity distribution. These systems will be implemented across the three distribution companies.
In addition, the project will upgrade the voltage of four grid stations in SEPCO from 66 kV to 132 kV, a significant step to mitigate transmission losses and better handle growing electricity demand. LESCO will benefit from the construction and modernization of 25 grid stations and the replacement of high-loss 11 kV feeder lines with more efficient aerial bundled conductors.
“These upgrades will reduce transmission losses, enhance real-time monitoring of grid performance, and improve revenue collection,” said Seung Duck Kim, ADB Principal Energy Specialist. “By improving the system’s ability to respond to extreme weather, this project will also minimize the time required for fault detection and recovery.”
The project will also evaluate policy reforms to improve the operational efficiency of these distribution companies and enhance the overall performance of Pakistan’s energy sector.
Since its establishment in 1966, ADB has provided Pakistan with more than $52 billion in financing to help develop its infrastructure and energy sector, contributing to the nation’s inclusive growth and economic development.
The Asian Development Bank, a key player in the region’s economic development, is committed to creating a prosperous and sustainable Asia-Pacific, with a focus on eradicating poverty and driving economic resilience.
To read more about Biomass Industry News continue reading Bioenergytimes.com
