ISLAMABAD: The Asian Development Bank (ADB) has approved a $200 million loan aimed at upgrading Pakistan’s electricity distribution network.
According to a press release issued on Wednesday, the funding will enhance the capacity of Distribution Companies (Discos) to provide consistent and reliable electricity.
The lender’s “Power Distribution Strengthening Project” will focus on reducing critical energy losses during transit and increasing infrastructure resilience against climate change and disaster-related risks.
In its initial phase, the project will support three major distribution companies namely Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MAPCO) and Sukkur Electric Power Company (SEPCO) for more efficient and sustainable transmission of energy in these areas. will provide
Additionally, it will include the installation of at least 332,000 advanced metering infrastructure, data management and communication systems, as well as at least 15,800 online transformer performance monitoring systems at LESCO, MAPCO and SEPCO.
The voltage of four grid stations at SEPCO will also be upgraded from 66 kilovolts (kV) to 132 kV, a significant increase that will reduce transmission system losses and meet increased power demand.
At least 25 grid stations will be constructed in Lesco and modernized with provision of modern equipment. High loss 11 kV feeder lines will be replaced with aerial bundle conductor cables, and feeder line configuration will be improved.
Also, the project will also study reform measures and policy recommendations that will improve the operational efficiency and overall performance of these three distribution companies.
Highlighting the importance of this initiative, Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, said: “Reliable grid-connected electricity improves quality of life. The project will reduce losses and protect revenues. The measures will also help in reducing the fiscal deficit of the power sector. Losses – reducing at least one source of pressure on the country’s economy”.
Meanwhile, ADB Principal Energy Specialist Seung Duk Kim noted that upgrades in the power distribution sector will reduce losses, increase revenue collection, and allow distribution companies to monitor power consumption and grid performance. will provide real-time data about
“In the event of severe weather, they can help identify and isolate faults quickly, reducing the time required for restoration and minimizing outages,” he remarked. is.”