ISLAMABAD: The Asian Development Bank has approved technical assistance to support the digital transformation of Pakistan’s power distribution companies through smart technologies aimed at improving efficiency and service reliability.
The 18-month programme will help develop a strategic roadmap, conduct feasibility studies for digitalization, and enhance capacity for network planning and adoption of new technologies. It will focus on three utilities, Lahore Electric Supply Company, Multan Electric Power Company, and Sukkur Electric Power Company, which will also act as executing agencies.
According to the ADB project document, the initiative aims to modernise the operations of the distribution companies and support the integration of renewable energy systems. It will introduce a modern Distribution Management System linked with Supervisory Control and Data Acquisition, Advanced Metering Infrastructure, and an online Automated Power Management System.
The combined systems are expected to improve outage response, load forecasting, automation, and management of decentralized renewable energy sources.
Pakistan’s power distribution sector continues to face problems including high transmission and distribution losses, low recovery of electricity bills, and limited investment due to weak financial performance. These issues are made worse by governance gaps, regulatory challenges, and lack of transparency, which limit access to commercial borrowing and increase reliance on public and donor funds.
As a result, energy services for consumers remain unreliable. Meanwhile, rising electricity demand and the expansion of decentralized systems, including rooftop solar and electric vehicle charging infrastructure, have added complexity to grid operations.
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