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SAARC Energy Ring - a Vision to Promote Energy Security in South Asia


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SAARC Energy Ring - a Vision to Promote Energy Security in South Asia

  2. 2. ENERGY SITUATION OF SOUTH ASIA 1.6 billion people 500 million live below $1 per day poverty line All Countries of South Asia  Oil importing  Energy deficit (except Bhutan)
  3. 3. ENERGY USE IN SOUTH ASIATOTAL ENERGY: 810 MTOE COMMERCIAL ENERGY: 606 MTOE Coal 48% Traditional Commercial 204 MTOE 606 MTOE 1% Nuclear (25%) (75%) 7% 29% 15% Hydel Oil Natural gas(MTOE - Million tonnes of oil equivalent)
  4. 4. ENERGY POVERTY OF SAARC REGION14,000 12,91412,00010,000 8,000 7,051 6,592 6,000 4,000 3,536 3,614 2,803 2,206 2,391 1,695 2,631 2,000 1,243 1,788 514 517 0 Energy Use kgoe/capita/yr Electricity Use kWh/capita/yr
  5. 5. SAARC INSTITUTIONAL MECHANISM FOR ENERGY COOPERATION  SAARC Summit of heads of States and Government  Ministerial Level Energy Forum  Inter-Governmental Working Group on Energy  Expert Groups for different energy commodities  SAARC Energy Centre
  6. 6. SAARC ENERGY CENTRE Established in 2006 at Islamabad to initiate, promote and facilitate cooperation in energy sector of SAARC Member States for the benefit of all Funded by SAARC Member States and supervised by a Governing Board comprising all Member States Professional staff selected on merit from Member States Expert services obtained through outsourcing International cooperation established with ADB, ASEAN, UN, ESCAP, Japan, US, Germany.
  7. 7. SAARC ENERGY RING - SENERING SAARC ENERGY RING: a Vision given by SAARC Leaders at the 2004 Islamabad Summit Vision translated into reality by SAARC Energy Centre Four Expert Groups engaged with way forward in: o Oil and Gas o Electricity o Renewable Energy o Technology Transfer (including Coal and Energy Efficiency)
  8. 8. STUDIES ON SENERING SAARC Regional Energy Trade Study (SRETS) identified four regional or sub-regional trade options: i. Power Market ii. Petroleum Refinery iii. LNG Terminal iv. Power Plant A recent ADB funded study on South Asia Regional Power Exchange has identified various opportunities in electricity trade
  9. 9. DRAFT INTER-GOVERNMENTAL FRAMEWORKAGREEMENT FOR COOPERATION IN ELECTRICITY Draft of a “SAARC Inter-Governmental Framework Agreement for Energy Cooperation (Electricity)” endorsed by Energy Ministers Meeting in Dhaka (15th September 2011) is under consideration of SAARC Member States Draft IGFA provides to allow for: o Unrestricted cross-border trade o Commercial negotiation of PPAs o Non-discriminatory open access o Private sector trading o Participation in power exchanges Ultimate objective is to create a SAARC Market for Electricity: SAME
  10. 10. SENERING – 1. POWER GRID • Nepal-India-Bhutan- Bangladesh • Pakistan-India-Nepal• Kyrgyzstan-Tajikistan- Afghanistan-Pakistan • India-Sri Lanka• Tajikistan-Afghanistan• Uzbekistan-Afghanistan • India-Bangladesh• Turkmenistan-Afghanistan • India-Myanmar• Iran-Afghanistan • India-Nepal• Iran-Pakistan
  11. 11. SENERING – 2. GAS GRID Qatar Arabian Sea• Turkmenistan-Afghanistan- Pakistan-India• Iran-Pakistan-India • Myanmar-Bangladesh-India• Qatar-Pakistan-India Pipelines from the west can further be extended to Nepal and Bangladesh
  12. 12. RATIONALE FOR ENERGY SECURITY (1/3)• Nepal and Bhutan together have over 100 GW of high quality (long term) hydropower potential and comparatively small local demand• Bangladesh is reliant on gas for more than 80% of its generation: – Rapidly consuming its gas reserves and yet facing serious power shortages – Power demand in Bangladesh is expected to triple over the next 10 years
  13. 13. RATIONALE FOR ENERGY SECURITY (2/3)• Pakistan is facing serious power shortages between 4000 to 6000 MW at peak demand. Hydro is seasonal, natural gas production is stagnant and oil is expensive• Sri Lankan power demand has exceeded the capacity of its viable major hydropower development options. – It is embarking on thermal power projects that run on imported coal
  14. 14. RATIONALE FOR ENERGY SECURITY (3/3)• India has a serious balancing act to play between growth, reliable power supply and emissions – The next decade presents far greater challenges particularly for provision of primary fuel• Successful development of power exchanges in India over the last three years has laid a strong platform for cross-border power trade• Transmission capability within India has improved remarkably over the last decade through an extensive expansion of the high voltage grid
  15. 15. PLANNED POWER GRID INTERCONNECTIONS Interconnection Capacity Est. Cost Annual Benefit (MW) (Million USD) (Million USD)1 India-Bhutan 2,100 140-160 18402 India-Nepal 1,000 186 1053 India-Sri Lanka 500 600 1864 India-Bangladesh 500 192-250 145-3895 India-Pakistan 250-500 50-150 335-4916 CASA 1000 1,000 970 906
  16. 16. NEXT STEPS FOR SENERING1. Detailed Scenario Analysis to identify Additional Interconnection Opportunities2. SAARC Electricity Transmission Master Plan3. Market Rules to Accommodate Cross-border Power Trade4. Regulatory Regimes for Cross-border Power Trade
  17. 17. CONCLUDING REMARKS Upgrading interconnected grid(s) and constructing additional interconnectors between India and its neighbours will promote realization of SAARC Energy Ring (SENERING) and SAARC Market for Electricity (SAME) USD 1 billion investment will be needed for 4-5 priority interconnection projects in next 5 years Many other potential interconnection possibilities exist within SAARC and beyond that provide economic dividend
  19. 19. CURRENT PROJECTS OF SEC (1/5)ENERGY EFFICIENCY 1. SAARC Action Plan on Energy Conservation & Efficiency 2. Gender-Energy nexus 3. Improved Cooking Stoves: “SAARC Chullah” 4. Energy efficiency in brick kilns 5. Capacity building of Energy Auditors
  20. 20. CURRENT PROJECTS OF SEC (2/5)ENERGY TRADE 1. Study on energy trade and power exchange 2. Study on harmonization of electricity laws 3. Study on energy pricing mechanism
  21. 21. CURRENT PROJECTS OF SEC (3/5)BEST PRACTICES 1. Lessons learnt in renewable energy technologies 2. Experience sharing of construction, operation and maintenance of LNG facilities 3. Power generation from lignite
  22. 22. CURRENT PROJECTS OF SEC (4/5)POWER 1. Promoting hydropower development 2. Feasibility Study and workshop for regional coal based power plant 3. Study on cogeneration in sugar and paper industries 4. Study on rural electrification policies
  23. 23. CURRENT PROJECTS OF SEC (5/5)ENERGY RESOURCES 1. SAARC Energy Data Bank 2. Geothermal energy potential of South Asia 3. Promoting extraction of non-conventional gas