MYANMAR future HUB for South East Asia Power Beltway

1. MYANMAR
future HUB for South East Asia Power Beltway
Harry Dhaul
Director General, IPPAI
Myanmar Electric Power Convention 2013
16 -18 Oct 2013, Yangon, Myanmar

2. UI mechanism & Indian Power Market
Northern Regional Load Despatch
Center - POSOCO
http://nrldc.org
Indian Energy Exchange – Power
Market of India
http://www.iexindia.com
Harry Dhaul - Director General, IPPAI

3. Proposed South Asia Grid And Beyond
with Myanmar as the Hub of the South East Asia Grid
Harry Dhaul - Director General, IPPAI

4. Cross Border Power Trade - Asian Developments
Pakistan to import 1,300MW power from Kyrgyzstan, Tajikistan
The News, Islamabad, September 17, 2013
Nawaz approves electricity import from India
Pakistan Today, Islamabad, Sep 22, 2013
Advisory group moots a National Power Beltway
NPB would enable a nationwide plug-and-play flexibility to generators and consumers
(Business Standard, Mumbai, May 30, 2013)
Bangladesh begins import of power from India
The Hindu, Dhaka, September 27, 2013
Thailand and China to build wind farms in Myanmar
Asian Power, Thailand, October 2, 2013
Thailand Plans to Buy More Electricity From Myanmar
Bernama, Bangkok, October 8, 2013
Tata Power to set up coal fired plant in Myanmar
Business Line, New Delhi, October 7, 2013
Harry Dhaul - Director General, IPPAI

5. Co-operation for Energy Security of South Asia
 Rapid economic development of South Asian countries not possible without
abundant, affordable power.
 It is Cost effective for countries to trade power through a common power pool
(e.g. Canada – US power trade, Existing Nord Pool, South African Power
Pool, Upcoming West African and East African Power Pools).
 Nations have different energy resources
and different load patterns.
 Required:
Fostering
energy
security
partnerships and co-operation through
pan Asian power pool.
Harry Dhaul - Director General, IPPAI

6. Cross Border Power Trade : Options
 Bulk power - long, medium and short term
 Meeting daily and/or seasonal peaking
especially when these are non coincidental
 Ancillary services
 Emergency support

Cross-country and crossregional transfers where
transit countries benefit from
wheeling charges.

Sharing electricity storage
reserves.
Harry Dhaul - Director General, IPPAI
requirements,

7. Cross Border Power Trade: Potential
Tajikistan
Per Capita Electricity
Generation (2011)
kwh/annum
2,111
Afghanistan
10
10.2
Winter
Oil, Natural Gas, Coal
Pakistan
600
3.7
Summer, Winter
Gas , Lignite, Hydro
India
700
6.6
Summer, Winter
Coal
Bhutan
Nepal
764
100
9.7
4.6
Winter
Winter
Hydro
Hydro
Sri Lanka
500
6.4
Summer
Biomass, wind
Bangladesh
200
6.1
Summer
Gas, Coal
Myanmar
116
6.3
Summer
Hydro
China
2,582
7.8
Summer, Winter
Coal, Hydro, Gas
Thailand
2,221
6.4
Summer
Natural Gas
Malaysia
3,700
5.6
Summer
Natural Gas, Coal
Singapore
8,508
1.3
Summer
Natural Gas
Iran
2,732
-5.4
Summer
Oil and Natural Gas
Country
GDP Growth %
2011
Peak Load
Energy Resources for
Power Generation
7.5
Winter
Coal and Hydro
Source: AF Mercados, Nation Master and Index Mundi.
Harry Dhaul - Director General, IPPAI

8. Cross Border Power Trade : Benefits
 Optimizing fuel mix to improve energy security and address environmental
concerns.
 Increased access to electricity in importing countries and utilization
generation assets.
 Exploiting
complementarities
and
comparative advantages :
 Primary energy endowments.
 Resource development costs.
 Complementary demand profiles.
 Larger markets – greater certainty for
investors, economies of scale.
 Manage variability of infirm power.
 Fostering cross border competition in
electricity
 Reduced cost of supply for all participants
because it is a large pool
of

9. South East Asia Power Beltway
Existing & Upcoming Grid Connectivity
 500 KV AC & DC lines from Kyrgyz Republic & Tajikistan to Afghanistan &
Pakistan are in an advanced stage of design and financing. By 2018 1,300 MW
of existing summer-time power surpluses can flow from Central Asia to South
Asia.
 Pakistan – India and Iran - Pakistan connectivity are under implementation.
 India - Bangladesh 500 MW connection is ready.
 Existing Bhutan – India connectivity needs to be expanded.
 Existing connectivity between Nepal - India is being expanded.
 Undersea grid link between Sri Lanka - India is under contemplation.
 400-500 MW Thailand - Malaysia existing connection.
 Malaysia - Singapore have plans for expanding their existing connectivity.
Harry Dhaul - Director General, IPPAI

10. Myanmar: Hub for South East Asia Power
Beltway
Recommended Grid Connectivity
 India – Myanmar connectivity is
required.
 Looking at the terrain, best connectivity
could be through Bangladesh or with
Manipur/Mizoram with India.
 Spur line from Myanmar could connect
China to the South Asian Grid.
 Spur lines from the South Asian Grid
could connect Laos to Vietnam and
Thailand to Cambodia.
Harry Dhaul - Director General, IPPAI

11. Myanmar: Hub for South East Asia Power
Beltway
Commercial Interest's
 Economic Benefits



Low cost power available for Myanmar to build a sophisticated industrial
and services economy
Cascading benefits of increase in employment, education, health and
sanitation using lower cost electricity
Financial Benefits
 Earnings from




International Investments in



Export of surplus power
Transmission /Wheeling charges
Facilitating Power Transactions
Power Generation
Transmission
Increase in Forex Inflows
Harry Dhaul - Director General, IPPAI

12. Myanmar as South Asian hub: Way Ahead
 Regulatory compliance.
 Grid connectivity and transmission charges,
congestion charges.
 Scheduling and coordination.
 Energy accounting and timely settlement.
 Dispute resolution - appropriate authority
for legal recourse and arbitration.
 Role of power exchanges.
 Sovereign
period).
payment
guarantees
(initial
 Promote
competition,
private
sector
participation in cross border power trade.
Harry Dhaul - Director General, IPPAI

13. Myanmar as South Asian hub: Way Ahead Contd..

Inter-Government Framework for Asian Energy Cooperation may be required.
Transmission planning, capacity addition studies based on load and generation
requirements can follow

Defining role of international investors, public sector/private developers in
construction, maintenance and operation of trans border power lines: Policy framework required for clarifying technical and institutional issues.


Harmonizing regulations for cross border power trade.
Issues in Financing
 Financing projects for development of the South
Asian power grid.

Financial settlement options - escrow, back stop
guarantees from governments.

Managing currency risks.

Setting up an effective payment security mechanism.
Harry Dhaul - Director General, IPPAI

14. Indian Power Sector & IPPAI
1910
Private Urban
Licensees
development
1948
Vertically
Integrated
SEBs formed
1992
1995
2003
 Competitive Bidding
Guideline
 Rural Electrification
Policy
IPPs
Development
in Sector
Generation: NTPC (1975), NHPC
(1975), NEEPCO (1976), NPCIL (1987)
Transmission & SO: PGCIL (1989),
Power Trading: PTC (1999),
Financing: REC (1969), PFC (1986),
Planning: CEA (1951 / 1975)
Regulation: CERC (1998)
2006
Electricity Act 2003
Power Trading notified
Open Access
Retail competition
Regional/national
electricity market
Independent system operator
De-licensing of Generation
activity
2008
2009-10
Power
Exchange
Setup
(IEX & PXIL)
POC Charge
in
Transmission
 Connectivity, LTA,
MTOA Regulations
 REC Regulation
(2010)
State Reform Acts
Unbundling
Independent Regulation
Financial restructuring
Institutional development
Distribution efficiency
improvement Planning
Privatization
IPPAI’s active involvement in the sector
Harry Dhaul - Director General, IPPAI
> 2011

15. About IPPAI:
 An independent body that provides a neutral platform for the discussion and
examination of issues critical to the development of the private power sector
Our Focus:
 IPPAI’s initiatives are focused on policy, strategic, financial, legal, regulatory and
technical issues in the power, oil & gas and allied sectors
Our Credentials’:
 IPPAI has, on its advisory committee, a number of experts from diverse fields
with a unique knowledge base and decades of experience in the Indian energy
sector. IPPAI interacts with Indian and International Organizations
 i.e. Ministries of Power, Petroleum, Finance, the Planning Commission, state
governments and trade associations
Harry Dhaul - Director General, IPPAI

16. Energy Independence is not Energy Security…..
Contact us:
Ms. Nayyara Houssian
Independent Power Producers Association of
India (IPPAI)
Shubhanchal Hostel Building,Near Vikas Sadan,
INA Colony,New Delhi - 110023Tel: +91-11-495
56600Fax: +91-11-495 56677Email:
nayyara@ippaimail.org
Harry Dhaul - Director General, IPPAI