Decarbonization and Digitization of Power Distribution Networks

Pakistan"s updated Nationally Determined Contribution (NDC) as of October 2021 sets a binding greenhouse gas (GHG) reduction target of 15 per cent compared to the 2015 baseline. In the energy domain, the goal is to achieve GHG reduction primarily by increasing the share of renewable energies (RE) from the current 30 per cent to 60 per cent by 2030. However, Pakistan"s targets for expanding renewable energies pose numerous technical challenges for transmission and distribution system operators regarding expansion planning. The main areas requiring expertise include developing forecasting methods for RE electricity yields across various locations and ensuring grid connections without compromising grid stability or causing large-scale power outages. The objective of the project is that key players in the power industry have implemented regulatory and digital solutions to facilitate the energy transition. The project aims to address the issue of Decarbonisation at the national planning level, at the organisational level and at the field level. At the national level, the project seeks to support the Government of Pakistan (GoP) in the Integrated Energy Planning (IEP) to develop long term carbon emission free scenario. At the organisational level the project has the objective to strengthen the network integration competencies of specialists and managers, transfer of know-how to digital solutions to reduce grid losses. The project specifically addresses the actors who play a key role in Renewable Energy integration, i.e., the transmission and distribution system operators through in-depth capacity building program. Through the further development of strategic capacities and the introduction of innovative digital solutions for power grid operation and management, the capacity of the power grid operators to actively shape the energy transition will be increased at the organisational level. At the field level, the project takes an implementation-oriented approach and develops scalable digital solutions for distribution grids to overcome energy losses, improve operational efficiencies and enhance control for managing increased RE share in the power network. Regulatory Guidelines: Efforts are underway to support Pakistan's energy sector institutions in adopting regulatory guidelines for implementing renewable energy strategy and enhancing the regulatory framework for integrating a high share of renewable energy in collaboration with key players in the electricity sector. Identification of necessary framework, guidelines, regulations, and subsequent support in formulating them is the major aim of the project. The project supports in formulation of policy instruments. Long Term Energy Planning: The project aims to assist the GoP for the Long-Term Energy Planning for Pakistan which shall provide the guidance and necessary steps to be taken for meeting the demand and supply of energy sector through low carbon intensive fuels. The project cooperates with experts from the Department of Integrated Energy Planning of the Pakistan Planning Commission and provides technical expertise for the calculation of possible energy scenarios. The scenarios depict different time horizons and options. A scenario with a time horizon up to 2050 will be developed to show the relevant actors the consequences of a largely decarbonised electricity market. Showcasing Digitalisation: The project will demonstrate the technical and financial feasibility of automation and digitalisation measures for distribution grids. It provides technical expertise to develop a concept for a holistic digitalisation concept together with the experts of the distribution system operators, which highlights the technology used and the expected effects on the reduction of grid losses and the increase in efficiency in grid operation. Building Network Integration Capacities: The focus of the project is on strengthening the capacities of transmission and distribution system operators for the integration of variable Renewable Energies. This involves both improving the skills of the experts and equipping them with the necessary digital tools through the institutionalising of the capacity building program. The project aims to develop a methodology for RE-forecasts, as a key element of operational grid operation planning, to be able to forecast the availability of wind and solar energy and to align grid operation accordingly. In addition to the introduction of digital forecasting tools, the methodology also includes recommendations for adapting or optimising dispatching (deployment planning of power plants) for the integration of wind and sun. The main objective of this assignment is to define a standard procedure for DISCOs to develop their 5 year Power Acquisition Plan using a state of the art load forecasting tool. The procedure must be in line with the requirements of NEPRA. Accurate medium-term load forecasting helps power utilities, regulators, and market participants anticipate future electricity demand, allowing them to plan power procurement, generation capacity, and infrastructure upgrades accordingly. With the transition to a competitive electricity market in Pakistan, precise forecasting is even more critical to avoiding power shortages or excess capacity, which can lead to financial and operational inefficiencies. Integrating state-of-the-art MTLF into the Power Acquisition Plan significantly enhances the accuracy, efficiency, and flexibility of power procurement strategies. By providing better demand predictions, optimizing procurement decisions, facilitating renewable energy integration, and ensuring financial sustainability, MTLF software allows utilities to craft more realistic and data-driven plans that can adapt to evolving market conditions. This integration helps ensure that PAPs are more resilient, cost-effective, and aligned with long-term energy goals, positioning the power sector for a more sustainable and efficient future.