- The project will include the installation of advanced metering infrastructure.
- At least 25 network stations are to be built and upgraded in Lesco.
- The voltage of four stations on the Sepco network will be increased to 132 kV.
ISLAMABAD: The Asian Development Bank (ADB) has approved a $200 million loan to Pakistan for the modernization of the country’s power distribution infrastructure.
The grant, according to the ADB press release issued on Wednesday, will be used to improve the capacity of distribution companies (discos) to provide reliable electricity.
The lender’s ‘Power Distribution Strengthening Project’ will focus on reducing significant energy losses during transmission and improving infrastructure resilience to climate change and disaster risks.
In its initial phase, the project will support three major distribution companies, namely Lahore Electric Supply Company (Lesco), Multan Electric Power Company (Mepco) and Sukkur Electric Power Company (Sepco), for more efficient and sustainable power supply in these regions.
Additionally, this would also include the installation of at least 332,000 advanced metering infrastructure, as well as data management and communication systems, and at least 15,800 online transformer performance monitoring systems in Lesco , Mepco and Sepco.
The voltage at four stations on Sepco’s network will also be increased from 66 kilovolts (kV) to 132 kV, a key improvement that will help mitigate losses in the transmission network and meet growing demand for electricity.
In Lesco, at least 25 network stations will be built and upgraded with the provision of critical equipment. The high-loss 11 kV power lines will be replaced with bundled overhead conductor cables and the power line configuration will be improved.
In addition, the project will also study reform actions and policy recommendations that would improve the operational efficiency and overall performance of these three distribution companies.
Highlighting the importance of this initiative, ADB Director General for Central and West Asia Yevgeny Zhukov said: “Reliable electricity connected to the grid improves quality of life. The loss reduction and revenue protection measures supported by this project will also help reduce financial difficulties in the electricity sector. losses – alleviating at least one source of tension on the country’s economy.
Meanwhile, Seung Duck Kim, senior energy specialist at the ADB, noted that improvements in the electricity distribution sector would reduce losses, improve revenue collection and provide distribution companies with real-time data on electricity consumption and network performance.
“In extreme weather conditions, they can help quickly identify and isolate faults, reducing the time required for recovery and minimizing outages,” he noted.