Implementation of Smart Grid Technologies in Pakistan under CPEC Project: Technical and Policy Implications

Abstract

Potential implementation of smart grid technologies has been given wide attention for modernization of electrical power systems. Existing power grid infrastructure of Pakistan is ill-suited to accommodate increased renewable energy sources and poses interoperability issues for seamless transition towards decentralization and digitalization of the power grid. Modernization of power grid through realization of smart grid technologies is much needed to meet the ever-increasing energy demand of the country. The China Pakistan Economic Corridor (CPEC) is a conglomerate of multibillion dollar infrastructural projects with a major focus on energy sector which offers a great opportunity for the country to invest appropriately in the power grid transformation. This research study is focused on devising a technical and policy framework for conversion of the existing power grid into smart grid under the umbrella of CPEC. Potential key drivers are identified for the deployment of smart technologies to upgrade the power grid of Pakistan. The presented research proposes a stage-wise implementation plan to upgrade the power infrastructure of the country. In particular, this research study presents cost benefit analysis for a case study with an aim to reduce the interruption index values. Obtained values of the cost benefit analysis suggest that the investment incurred for smart grid realization can be paid back within a period of twenty months and offers a positive net present value which establishes the financial feasibility of the project. Importantly, policies and recommendations are suggested which would enable the concerned stakeholders to ensure grid modernization as per the proposed smart grid implementation plan.