Pakistan is advancing its efforts towards a sustainable energy future with the signing of a contract for a new substation in the Gharo wind corridor. This project, part of an initiative to enhance renewable energy and grid connections, involves the National Grid Company of Pakistan (NGC) as the project sponsor and German company Siemens as the general contractor. The development is financed by a 27 million euro loan from funds provided by the German Federal Ministry for Economic Cooperation and Development through KfW Development Bank. The project aligns with the broader Pakistan-German Climate and Energy Partnership.
The substation will play a critical role in transmitting energy generated from wind and integrating it into supply grids, addressing current grid restrictions. It aims to contribute to a stable, sustainable energy supply in Pakistan, reducing CO2 emissions and dependency on fossil fuels while supporting economic growth through job creation.
Sebastian Jacobi, Director of KfW Office, highlighted Pakistan's governmental support in reaching climate objectives during the signing ceremony. Janine Rohwer from the German Embassy emphasized these projects' importance within Pakistan's IMF reform programme commitments.
The programme also includes measures to aid the Pakistan Electricity Supply Authority in managing facilities properly, ensuring suitable working conditions, and implementing effective environmental and social management practices.