1. 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

2. Contents
• Introduction
• Bangladesh Power Scenario
• Current /On-going Initiatives
• Potential Proposals for
Joint/Multilateral Cooperation
• Policy Issues
• Concluding Remarks/Way Forward

3. 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.

4. 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.

5. 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

6. 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
 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

7. Forecasting Of Power Demand Based
Financial Growth Rate Scenarios
For 8% GDP
For 7% GDP
For 6% GDP

8. Coal as Source for Power Generation
According 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

9. 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;

10. 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.

11. Regional Inter-connection in SAARC

12. • Bhutan has hydro
power resources
Potential 30,000 MW
Proposals for
Joint/Multilateral • Nepal has hydro power
Cooperation resources 83,000 MW
• India has hydro power
resources 150,000 MW
• Pakistan hydro power
potential 54, 000 MW

13. Interconnection Voltage Remarks
Level
Bheramara - 400 KV Power Import from Eastern
Baharampur Region, India
Comilla – Palatana, 400 KV Power Import from
Tripura
Fenchugonj – 400 KV Power Import from North-
Shilchar, Assam Eastern Region including
Meghalaya
Barapukuria – 765 kV Power Import from Nepal
Purnia, Bhihar
Barapukuria – 765 kV Power Import from Arunachal
Bongaigaon, Assam and Bhutan

14. 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.

15. 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.

16. 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)

17. Bangladesh India
Friendship Power
Company
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

18. 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

19. 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.