Pakistan’s Gharo Wind Corridor gets €27 Million Clean Energy boost from Germany
Pakistan has marked a significant step towards a sustainable and climate-friendly energy future with the signing of a contract for the construction of a new substation at the Gharo Wind Corridor.
This project, a collaboration between the National Grid Company of Pakistan (NGCP) and German firm Siemens Energy, is funded by a €27 million loan from Germany’s KfW Development Bank, backed by the German Federal Ministry for Economic Cooperation and Development (BMZ).
Strengthening Pakistan’s Renewable Energy Infrastructure
The Gharo Wind Corridor, one of Pakistan’s key renewable energy hubs, will benefit from enhanced grid connectivity and capacity through this substation. Siemens Energy, acting as the general contractor, brings extensive technological expertise to the initiative, which is part of the broader Pakistan-German Climate and Energy Partnership (PGCEP) promoted by KfW on behalf of BMZ.
This infrastructure upgrade is crucial to efficiently evacuate wind-generated power and integrate it into Pakistan’s national grid, alleviating existing transmission bottlenecks. The project is expected to significantly reduce the country’s reliance on fossil fuels, decrease CO2 emissions, and foster a more stable and sustainable energy supply to meet rising demand.
Economic and Environmental Impact
Beyond environmental benefits, the substation’s construction is poised to create numerous jobs, boosting economic growth in the region. The enhanced grid capacity will support Pakistan’s expanding energy needs, thereby facilitating continued socio-economic development.
At the signing ceremony, Sebastian Jacobi, Country Director of KfW, highlighted the importance of this partnership and the support of the Government of Pakistan in achieving its climate goals.
Janine Rohwer, First Secretary of the German Embassy in Islamabad, underscored the project’s alignment with Pakistan’s IMF-backed economic reforms, saying that “Germany sees the improvement of the transmission grid as part of the cost-related reforms to which Pakistan has committed.”
In addition to the physical infrastructure, the program includes measures to strengthen the operational and maintenance capacity of the Pakistan Electricity Supply Authority. This ensures that environmental, social, and labor standards are upheld throughout the project lifecycle, safeguarding long-term sustainability and community welfare.