Energy trade under SAARC umbrella
Sunday, 28 October 2007
Shahiduzzaman Khan
THE SAARC Energy Centre, which is now 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 among the members of the region.
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 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 a bilateral agreement 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 seven member-countries of SAARC -- Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and the Maldives. Besides, a study will be carried out to 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 in the region by a working group on energy. Experts stressed the need for co-operation among the SAARC countries in energy sector for optimal utilisation of energy resources in the region.
The energy ministers of the member countries met in Islamabad in 2005 to discuss energy cooperation among the member states. The ministers stressed the need to accelerate the integration of energy strategies in the region. Apart from discussing the progress of initiatives, the meeting reviewed substantial progress that was achieved in materialising the SAARC Energy Ring. The SAARC energy experts also sat for a two-day meeting next year to decide the agenda of the ministerial meeting in Islamabad. 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 were discussed in the meeting.
Against the backdrop of persistent power crisis throughout Bangladesh, it is a good news that the energy ring is expected 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 discussed the project threadbare and vowed to work towards improving the scenario to begin energy trading between the member countries.
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.
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).
Energy Adviser said in a recent media briefing that there was huge 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 a bilateral agreement with countries.
Recently, Bangladesh government 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 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.
Meanwhile, on domestic front, power supply situation has aggravated further with the shutdown of some power units for their routine maintenance. The acute power shortage continues to hit the country hard with no sign of an immediate respite from load shedding. The demand for power increased significantly that increased the volume of load shedding. Scarcity of gas and coal, along with dilapidated power stations, has led to a decline in power production. Production fall in the country's lone offshore gas field Sangu is a major reason for gas crisis.
After the caretaker government took over, many irregularities centring the power sector came to limelight. In its five-year rule, the alliance government has allowed dishonesty to dominate various executive decisions in the power sector. As a result, the regime has failed miserably in the power sector and the nation is bearing the brunt of it. The demand-supply disparity widened mainly because the government, despite its failure to implement new power projects, doubled the rural power supply network. This massive expansion of network has financially benefited only the electricity pole suppliers --who are basically some political bigwigs, and the ruling party lawmakers aimed at taking political leverage of bringing power distribution lines to their constituencies.
The recent power crisis has not befallen the nation all of a sudden, but is the natural consequence of years of negligence. The present power crisis has exposed the avarice and weakness of the government. Such a situation is bound to happen when lack of competence is complemented by greed for money.
The caretaker government was visibly displeased at the way the power situation was handled during the tenure of the immediate past government. The incumbent government appeared firm to eliminate controversial power projects, if it is found necessary. It is also expediting the implementation of small power plant projects to increase power generation. Other measures are in the offing.
The nation thus expects a short-term solution to the problems of power and energy sector on a priority basis. It is also an urgent necessity to find remedies from the proposed energy centre which is being set up for the welfare of the energy-hungry region.
THE SAARC Energy Centre, which is now 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 among the members of the region.
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 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 a bilateral agreement 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 seven member-countries of SAARC -- Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka and the Maldives. Besides, a study will be carried out to 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 in the region by a working group on energy. Experts stressed the need for co-operation among the SAARC countries in energy sector for optimal utilisation of energy resources in the region.
The energy ministers of the member countries met in Islamabad in 2005 to discuss energy cooperation among the member states. The ministers stressed the need to accelerate the integration of energy strategies in the region. Apart from discussing the progress of initiatives, the meeting reviewed substantial progress that was achieved in materialising the SAARC Energy Ring. The SAARC energy experts also sat for a two-day meeting next year to decide the agenda of the ministerial meeting in Islamabad. 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 were discussed in the meeting.
Against the backdrop of persistent power crisis throughout Bangladesh, it is a good news that the energy ring is expected 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 discussed the project threadbare and vowed to work towards improving the scenario to begin energy trading between the member countries.
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.
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).
Energy Adviser said in a recent media briefing that there was huge 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 a bilateral agreement with countries.
Recently, Bangladesh government 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 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.
Meanwhile, on domestic front, power supply situation has aggravated further with the shutdown of some power units for their routine maintenance. The acute power shortage continues to hit the country hard with no sign of an immediate respite from load shedding. The demand for power increased significantly that increased the volume of load shedding. Scarcity of gas and coal, along with dilapidated power stations, has led to a decline in power production. Production fall in the country's lone offshore gas field Sangu is a major reason for gas crisis.
After the caretaker government took over, many irregularities centring the power sector came to limelight. In its five-year rule, the alliance government has allowed dishonesty to dominate various executive decisions in the power sector. As a result, the regime has failed miserably in the power sector and the nation is bearing the brunt of it. The demand-supply disparity widened mainly because the government, despite its failure to implement new power projects, doubled the rural power supply network. This massive expansion of network has financially benefited only the electricity pole suppliers --who are basically some political bigwigs, and the ruling party lawmakers aimed at taking political leverage of bringing power distribution lines to their constituencies.
The recent power crisis has not befallen the nation all of a sudden, but is the natural consequence of years of negligence. The present power crisis has exposed the avarice and weakness of the government. Such a situation is bound to happen when lack of competence is complemented by greed for money.
The caretaker government was visibly displeased at the way the power situation was handled during the tenure of the immediate past government. The incumbent government appeared firm to eliminate controversial power projects, if it is found necessary. It is also expediting the implementation of small power plant projects to increase power generation. Other measures are in the offing.
The nation thus expects a short-term solution to the problems of power and energy sector on a priority basis. It is also an urgent necessity to find remedies from the proposed energy centre which is being set up for the welfare of the energy-hungry region.