The SAARC Grid:Policy, Regulatory, Infra-structure,Contractual Issues in Cross BorderTrade 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 and Regulatory Issues• Concluding Remarks/Way Forward
Introduction• Electricity has made modern society what it is today. Travelling, cooking, communicating, lighting, heating …. You name it, we will tame it - with electricity.• And without electricity?• Our living would come practically to a complete halt.
Introduction• Electricity is the precondition of all development. It is really difficult to imagine a world without electricity.• We need electricity for agriculture, commercial, domestic, industrial, official, transport, and other economic activities.• But producing the ever-increasing amount of electricity in everyday life is a big challenge• At the same time, several other issues must be taken into account: – population growth, – climate change, – fuel source and – dwindling fossil fuel reserves.
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 ScenarioVision 2021-• To be a Middle-Income CountryVision for Power Sector:• To provide quality electricity to all people at a affordable price by 2021Mission• 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
Present Power Sector and Power Demand Supply SituationElectricity 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 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
Forecasting Of Power Demand Based Financial Growth Rate Scenarios For 8% GDP For 7% GDP For 6% GDP
Coal as Source for Power GenerationAccording to PSMP by Regional Grid 3500 MW 2030 6.98% 9.04% 10.34% Nuclear 4000 MW 29.07%• 50% Electricity will be 22.87% Gas/LNG 8850 MW generated from Coal 21.71% Imported Coal 8400 MW• 22% from natural gas Domestic Coal 11250 MW• 28% from other source Others 2700 MW Total Generation Capacity in 2030: 38,700 MW• 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
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 in SAARC• 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.
• Bhutan has hydro power resourcesPotential 30,000 MWProposals forJoint/Multilateral • Nepal has hydro powerCooperation resources 83,000 MW • India has hydro power resources 150,000 MW • Pakistan hydro power potential 54, 000 MW
Interconnection Voltage Remarks LevelBheramara - 400 KV Power Import from EasternBaharampur Region, IndiaComilla – Palatana, 400 KV Power Import fromTripuraFenchugonj – 400 KV Power Import from North-Shilchar, Assam Eastern Region including MeghalayaBarapukuria – 765 kV Power Import from NepalPurnia, BhiharBarapukuria – 765 kV Power Import from ArunachalBongaigaon, Assam 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.
River Basin Map of Arunachal Pradesh With Hydro Potential 11 GW 18 GW 12 GW 8 GW3 GW 6 GW 0.1 GW 0.25 GW
Hydro Potential In North Eastern IndiaMeghalaya:• 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.
Future Plan 2010- 2012 2013 2014 2015 2016 Total Year 2011(MW) (MW) (MW) (MW) (MW) (MW) (MW) commissionedPublic 1055 632 1467 1660 1410 750 6974Private 1839 1354 1372 1637 772 1600 8574 Power - 500 500 Import Total 2894 1986 3339 3297 2182 2350 16048
Policy for Investment Opportunity in Power Sector SL Name/Title of the Policy Date of No Adaption 01 National Energy Policy 1996 02 Private Sector Power Generation Policy of Bangladesh 1996 Policy Guideline for Small Power Plants (SPP) in 1998 03 Private Sector 04 Bangladesh Energy Regulatory Commission Act 2003 Policy Guidelines for Enhancing Private Participation in 2008 05 Power Sector 06 Renewable Energy Policy of Bangladesh 2008 22
Bangladesh & India• Frame-Work Agreement between India and Bangladesh at PM level• Grid Interconnection ( 500 MW)• G to G Joint Venture ( Bangladesh-India)• BIFPC in Rampal (Bagerhat) 1320 MW Coal Based Power Plant• Innovative Ideas (Tender’s Financing)
Bangladesh IndiaFriendship PowerCompany Project site to Mongla 14km (S) Port Project site to nearest 14 km (S) Sundarbans boundary Project site to Khulna City 23 km (N) Project site to Akram 67 km (S) Point Project site to nearest 76 km (S) World Heritage boundary Project site to Hiron Point 97 km (S) All distances were measured from Plant location
Policy and Regulatory Issues:• Absence of Regulatory Framework• Huge Investment• Huge Infrastructure• Tax on dividents• Mistrust and lack of confidence
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.
Way Forward• Flexibility is the key ingredient in finding a solution for the production of electricity.• It has been important in the past with example of both having it and lacking it.• We have to make sure that we will have it in future.