The SAARC Grid: Policy, Regulatory, Infra-structure, Contractual Issues in Cross Border Trade of Electricity

Monowar Islam, ndc

Secretary, Power Division

Bangladesh

01 March 2013

Contents

• Introduction

• Bangladesh Power Scenario

• Current /On-going Initiatives

• Potential Proposals for Joint/Multilateral Cooperation

• Policy Issues

• Concluding Remarks/Way Forward

Introduction

• The SA region is currently experiencing a rapid growth in electricity demand due to the enhanced economic growth and industrialization.

• In spite of that, the average per capita electricity consumption (about 600 kWh) in the region is far below the world average of 3000 kWh.

Introduction- Continue

• Adequate electricity supply is, therefore, a major challenge the SA economies are facing

• It is important to ensure reliable and reasonably priced electricity to the customers of this region

• Therefore, mutual co-operation in developing energy resources and electricity trade to optimize demand - supply balance is the utmost priority.

Bangladesh Scenario

Vision 2021- • To be a Middle-Income Country

Vision for Power Sector: • To provide quality electricity to all people at a affordable

price by 2021

Mission • To increase generation, transmission and distribution

• To ensure energy efficiency

• To reduce system loss

• To build public – private partnership

• To develop cooperation with regional countries

Generation : 6000 – 6350 MW (Installed Generation Capacity- 8275 MW)

So far Achieved : 6350 MW ( Aug 4, 2012)

Peak Demand : 7500 MW (with DSM)

Load shedding up to 500 MW during peak demand (with DSM)

Shortage and unreliable power supply has retarded desired economic growth

Present Power Sector and Power Demand Supply Situation

Electricity Growth : 12 % (FY- 2012) (Av. 7 % since 1990)

Installed Generation Capacity: 8,275MW (Oct, 2012)

Per Capita Generation: 272 kWh (incl. Captive)

Access to Electricity: 60 % of People

Power Demand Supply Situation

Forecasting Of Power Demand Based

Financial Growth Rate Scenarios

For 6% GDP

For 7% GDP

For 8% GDP

Coal as Source for Power Generation

According to PSMP by

2030

• 50% Electricity will be

generated from Coal

• 22% from natural gas

• 28% from other source

• As a part of the Power System Master Plan (PSMP) BPDB has planned to construct

1320 MW coal based power plant at Khulna

1320 MW coal based power plant at Chittagong

8320 MW coal and LNG based power plant at Maheshkhali

9.04% 10.34%

22.87%

21.71%

29.07%

6.98%

Regional Grid 3500 MW

Nuclear 4000 MW

Gas/LNG 8850 MW

Imported Coal 8400 MW

Domestic Coal 11250 MW

Others 2700 MW

Total Generation Capacity in 2030: 38,700 MW

Priority Issues for PS in Bangladesh • Ensure primary fuel (gas, oil, coal, etc) supply sources for

power generation; • Financing arrangement for overall power sector , special

emphasis to arrange finance for coal based power plant; • Constructing transmission backbone line (400KV level); • Strengthen distribution network, upgrade and new line

construction for more coverage; • Ensure regional interconnectivity. Regional agreement for

power trade with Nepal, Myanmar, India and Bhutan; • Development of renewable energy and energy efficiency. • Operationalization of SREDA;

On-going Initiatives

• Bhutan perhaps exports about 1200 MW power to India mainly from its Chuka and Tala hydro power projects.

• Under a framework agreement between Bhutan and India, first 10 projects were selected for the development of 10,000 MW by 2020.

Regional Inter-connection in SAARC

• Bhutan has hydro power resources 30,000 MW

• Nepal has hydro power resources 83,000 MW

• India has hydro power resources 150,000 MW

• Pakistan hydro power potential 54, 000 MW

Potential Proposals for Joint/Multilateral Cooperation

Interconnection Voltage

Level

Remarks

Bheramara -

Baharampur

400 KV Power Import from Eastern

Region, India Comilla – Palatana,

Tripura

400 KV Power Import from

Fenchugonj –

Shilchar, Assam

400 KV Power Import from North-

Eastern Region including

Meghalaya

Barapukuria –

Purnia, Bhihar

765 kV Power Import from Nepal

Barapukuria –

Bongaigaon, Assam

765 kV Power Import from Arunachal

and Bhutan

Arunachal Pradesh:

• In term of Identified Capacity (as per reassessment study) total hydro potential in Arunachal Pradesh is estimated around 50328 MW.

• Among this huge potential around 405 MW is already developed and 2710 MW is under construction.

Hydro Potential In North Eastern India

Meghalaya: • At present, total installed capacity of Meghalaya

is around 370 MW. • Electricity demand in 2011-12 was about 319

MW. • In term of Identified Capacity (as per

reassessment study) total hydro potential in Maghalaya is estimated around 2394 MW.

• Among this huge potential around 240 MW is already developed and 82 MW is under construction.

Policy and Regulatory Issues:

• Frame-Work Agreement between India and Bangladesh at PM level

• Power Policy

• Special Power Act

• G to G Joint Venture ( Bangladesh-India)

Bangladesh India Friendship Power Company

Project site to Mongla Port

14km (S)

Project site to nearest Sundarbans boundary

14 km (S)

Project site to Khulna City 23 km (N)

Project site to Akram Point

67 km (S)

Project site to nearest World Heritage boundary

76 km (S)

Project site to Hiron Point 97 km (S)

All distances were measured from Plant location

Way Forward

• Track I diplomacy may be strengthened vis-à-vis Track II diplomacy

• Open mind dialogue from policy makers

• Win-Win situation for all regional countries to benefit the people of the SAARC region

• Time is running out

Way Forward

• Political will is the key for regional electricity interconnection and establishment of power market.

• This will certainly enhance the energy security in this region and land locked countries will have the opportunity to enhance their export earnings.

• Therefore, overall socio economic condition of this region will improve significantly.