Viability of energy ring and energy trade in the region

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Shahiduzzaman Khan
The country's power-supply situation is yet to improve as several more power plants were shut down by the Power Development Board (PDB) for gas supply shortages that badly affected life and business. According to reports published in the media last week, the PDB had to reduce production by 728 megawatts due to short supply of gas. Actually, the PDB generated 3500MWs-plus against a demand for 4400MWs.
However, experts believe, the demand is for more than 4700MWs, but PDB officially does not admit the actual demand. The PDB had to go for load shedding of more than 1000MWs to manage the mismatch between demand and supply. This year, urban areas are experiencing relatively more power shortages as the government is pursuing a policy to give priority to rural areas to support farming activities to make up for the crop losses caused by back-to-back natural disasters.
Against the backdrop of persistent power crisis across Bangladesh, it is again a good news that creation of an energy ring is being discussed to connect all SAARC member-countries to minimise the acute power shortage faced by them. It may consist of transnational lines for trade in electricity, gas and oil. A meeting of the SAARC energy ministers held in New Delhi recently discussed the project threadbare and vowed to work towards improving the scenario to begin energy trading between the member countries.
The SAARC Energy Centre, which is now under consideration for being set up, is expected to act as a catalyst for economic growth and development in the South Asian region. It will concentrate on the sharing of information, technological expertise and hardware. All SAARC members identified facilitating and promoting trade in energy in South Asia as one of the key areas for co-operation. As such, in view of the potential for regional co-operation, an energy ring has been conceptualised in the SAARC. India has already grid interconnections with Nepal and Bhutan and technical studies were being carried out to explore the feasibility of similar transmission links with Sri Lanka and Bangladesh.
All member countries would benefit from Nepal's efforts at fuel conservation, like battery powered rickshaws and solar water heaters as well as Bangladesh's promotion of rural cooperatives for electricity generation and distribution. The South Asian Association of Regional Cooperation (SAARC) is also seeking the cooperation of the Association of South East Asian Nations (ASEAN) to learn from their experience and cooperate with them in various energy-related projects. Energy experts of all SAARC countries submitted proposals to finalise the terms of reference to appoint consultants for developing plans to establish grid stations connecting the member states.
Nepal and Bhutan generate 40,000 megawatts of hydroelectricity which can be exported to other SAARC countries through common grid stations. India is currently benefiting from the hydroelectricity generated by Nepal and Bhutan under bilateral agreements and wants to maintain this privilege. The SAARC would form an electric power regulatory body to deal with the energy trade in the region.
Under the terms of reference, a group of experts would work out sector/fuel wise options, benefits and constraints of energy trade among eight member-countries of SAARC -- Afghanistan, Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and the Maldives. Besides, a study will be carried out that would also examine the international best practices in trade and their relevance to the region and analyse various technological, financial and commercial options to promote energy trade in SAARC.
Co-operation in energy sector, including the idea of energy ring, has been identified as a key issue in the face of growing energy demand and the concerns about energy security by the working group on energy of SAARC countries. Experts have stressed the need for co-operation among the SAARC countries in energy sector for optimal utilisation of energy resources in the region. Projects concerning cooperation in energy trade, independent power producers, efficiency standards, fuel efficiency for road transport, CNG, rural electrification, micro-hydro electric and wind energy plants have thus been under discussions.
A committee, appointed by SAARC countries, has prepared a survey report on availability of surplus power and electricity demand as well as load forecast for the next 10-15 years for each of the member countries. On the basis of the report, the SAARC countries will discuss the viability of energy trade in the region. The regional infrastructure on interconnecting countries could be developed with the inclusion of SAARC and BIMSTEC (Bangladesh-India-Myanmar-Sri Lanka Thailand Economic Co-operation).
There is a large potential for energy trade, especially hydro electricity among SAARC countries. As such, all in the SAARC want to introduce energy trade in the region. In 1998, South Asian Regional Initiatives (SARI), a forum of Bangladesh, Bhutan, Nepal and India, had proposed creation of an 80,000 megawatt (MW) power reserve to ensure a dependable supply of electricity to member-nations. But it failed to implement as India wanted bilateral agreements with countries.
Recently, the government of Bangladesh had decided to initiate talks with India on interconnecting the national power grid of Bangladesh with the north-eastern power grid in India based on the feasibility study of the USAID, Asian Development Bank (ADB) and SARI-Energy co-operation. Bangladesh could bring 200 MW of electricity from Tripura or Assam, where India has hydroelectric plants.
The recent power crisis has not befallen the nation all of a sudden, but it is the natural consequence of years of negligence. The crisis has exposed the avarice and weakness of the past governments. Such a situation is bound to happen when lack of competence is complemented by greed for money. However, the present caretaker government appeared firm to eliminate controversial power projects, if they are found unnecessary. It is also expediting the implementation of small and rental power plant projects to increase power generation. Other measures are in the offing. But time is fast running out for the present caretaker government.
On its part, the nation has been expecting a short-term solution to the problems of power and energy sector on a priority basis. It is also an urgent necessity to improve image of the power and energy ministry with all their honest and sincere activities. Will this government be really able to demonstrate its earnestness to address it, before it leaves office after the general election, due for December 18 next?
szkhan@thefinancialexpress-bd.com