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The SAARC Grid:Policy, Regulatory, Infra-structure, Contractual Issues in Cross Border Trade of Electricity
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 and Regulatory Issues
• Concluding Remarks/Way Forward
3. 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.
4. 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.
5. 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.
6. 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.
7. 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
8. 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
9. Forecasting Of Power Demand Based
Financial Growth Rate Scenarios
For 8% GDP
For 7% GDP
For 6% GDP
10. 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
11. 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;
13. 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.
14. • 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
15. 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
17. 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.
18. River Basin Map of Arunachal Pradesh
With Hydro Potential
11 GW
18 GW
12 GW
8 GW
3 GW
6 GW
0.1 GW
0.25 GW
19. 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.
20. Future Plan
2010-
2012 2013 2014 2015 2016 Total
Year 2011(MW)
(MW) (MW) (MW) (MW) (MW) (MW)
commissioned
Public 1055 632 1467 1660 1410 750 6974
Private 1839 1354 1372 1637 772 1600 8574
Power
- 500 500
Import
Total 2894 1986 3339 3297 2182 2350 16048
22. 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
23. 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)
24. 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
25. Policy and Regulatory Issues:
• Absence of Regulatory Framework
• Huge Investment
• Huge Infrastructure
• Tax on dividents
• Mistrust and lack of confidence
26. 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
27. 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.
28. 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.