Germany Adds €2.5M to Pakistan Power Grid Upgrade

Germany has pledged an additional €2.5 million to Pakistan under the Decarbonisation and Digitisation of Power Distribution Network Project. The funding will support a pilot Battery Energy Storage System (BESS) and enhance training for energy officials, advancing Pakistan’s transition to a more efficient and digital power infrastructure.

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Pakistan’s energy sector is set to benefit from a fresh €2.5 million injection from the German government, expanding the scope of the ongoing “Decarbonisation and Digitisation of Power Distribution Network Project.” The initiative, backed by German Development Cooperation (GIZ), now totals €9.5 million and aims to modernize Pakistan’s power grid through digitalisation and energy storage.

The new funding will pilot a Battery Energy Storage System (BESS) and develop a business model for its integration. “This is a critical step toward stabilizing Pakistan’s grid and embracing renewable energy,” said Jens Brinkmann, head of the DEDI project at GIZ Pakistan.

A scoping mission led by Brinkmann and renewable energy expert Ruediger Spielkamp will engage stakeholders to shape the BESS concept. The Ministry of Energy and DISCOs will collaborate with GIZ to refine the framework, ensuring local capacity is built for sustainable energy solutions.