POWERING SOUTH ASIA ECONOMIC COOPERATION · India –Sri Lanka In a recent meeting of JSC/ JWG, Sri Lanka has shown deep interest for Cross Border Transmission Interconnection. Accordingly,

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POWERING SOUTH ASIA ECONOMIC COOPERATION

POWER SUMMIT 2019

HELD AT

KATHMANDU ON 21 – 22 NOVEMBER, 2019

NEPAL (IPPAN)

R.V. SHAHIFormer Power Secretary,

Govt. of India

IMPORTANT INITIATIVES DURING LAST 15 YEARS

Tala (Bhutan) – Delhi Transmission System.

India – Bhutan Agreement to develop 10,000 MW HydroProjects in Bhutan.

India – Bangladesh Agreement for supply of 250 MW,subsequently enhanced to 500 MW from India.

Agreement to develop 500 MW Back-to-Back HVDCInterconnection between Behramara (BD) andBehrampur (India).

Bangladesh – India Agreement to develop a Power Plantin Joint Venture 1320 MW in Bangladesh (BPDB-NTPCJV).

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Bangladesh – India agreeing to constitute PowerSecretary level. Bi-Partite Mechanism for cooperationand development - Joint Steering Committee/JointWorking Group , and for monitoring and resolution ofpower issues.

Bangladesh – India agreeing for further expansion of500 MW HVDC System at Bheramara to 1000 MW and forsupply for additional 500 MW.

India – Bangladesh agreement to supply additional 150MW in Radial A.C. Mode from Tripura (India).

India agreeing to Bangladesh accessing Indian PowerMarket to purchase power on Competitive Bidding andusing Indian Transmission System to carry power toBangladesh.

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Investment Board of Nepal signing PowerDevelopment Agreements for two large ExportOriented Hydro Projects – Arun-3 and Upper Karnali (900 MW each).

Power Trade Agreement between India and Nepalwith provisions for mechanism of Joint SteeringCommittee, Joint Working Group and Joint TechnicalTeam (on similar line as in case of Bangladesh).

Cooperation Agreement on Energy signed inKathmandu, in SAARC Summit, in November, 2014(Only Agreement out of many which had beenplanned).


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Bangladesh – India decide in principle forsynchronous operation of Grid.

Commissioning of 400 KV Double Circuit TransmissionSystem between India and Nepal (Dhalkebar –Muzaffarpur).

Strengthening and upgradation of a number ofexisting 132 KV Interconnections between India andNepal.

Decision of Govt. of India to allow a dedicated 1600MW Power Project to be set up in the State ofJharkhand with dedicated Transmission System forsupply of power to Bangladesh and signing of PPA byBPDB.


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Comprehensive Guidelines for Cross Border PowerTrade issued by Govt. of India, in 2016. GOI amendedthese Guidelines in 2018 to address the concernsraised by neighbouring countries. These would enablepower from one country to another through IndianGrid. Power trade through Exchange also provided inthe Guidelines.

Establishment of Transmission Interconnectionbetween India and Myanmar, also putting in place theJoint Steering Committee system.

Sri Lanka and India also sign Agreement on JointSteering Committee mechanism to further enhancecooperation in the power sector.


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Champion Process with Membership of Distinguishedindividuals- World Bank Initiative.

Institutionalising the South Asia Power SecretariesRound Table - World Bank Initiative.

Bangladesh and India are working on procedures andother details of implementing Synchronous Operationsof the Grid.

The Joint Technical Team (JTT) is working on a largeTransmission Infrastructure covering North EasternStates of India, Bangladesh and Eastern Grid of India.This will open up opportunity for upscaling powertrade.

OUTCOMES OF VARIOUS INITIATIVES

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India – Bhutan

Tala – Delhi Transmission System already operational;with Tala Project (1020 MW) commissioned in 2006-07.

Dagacchu Project 126 MW J.V. with Tata PowerCommissioned in March 15, 2015.

Mangdechhu Project of 720 MW has beencommissioned. PPA with India has been finalized.

Punatsangchhu I of 1200 MW and Punatsangchhu IIof 1020 MW are at advanced stage of construction dueto be operational by December, 2022 andPunatsangchhu II by December, 2019.


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India – Bhutan

Kholongchhu Project 600 MW, J.V. with SJVNL (Govt.of India Undertaking) is under construction.

Punakha Project (180 MW) J.V. with SJVNL, WangchuProject (570 MW), J.V. with SJVNL andChamkharchhu-I Project (770 MW) J.V. with NHPC areat various stages of development.

Govt. of India has agreed to the implementation ofStorage Project Sankosh (2585 MW) under Inter-Governmental Model (IG Model).


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India – Bangladesh

First 500 MW HVDC at Bheramara (Bangladesh) withinterconnection at Behrampur in India wascommissioned in October 2013, in a record time of lessthan three years from concept level to commissioning.

Second 500 MW HVDC at Bheramara was commissionedin 2016. Synchronous Operation at 132 KV betweenSurajmaninagar, Tripura (India) and Comila(Bangladesh) in 2016, with over 150 MW of supply.

Bangladesh – India Friendship Power Company (NTPC-BPDB) J.V. is setting up 1320 MW Power Project atRampal (Khulna), Bangladesh, commissioning in June,2021.


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India – Bangladesh

Adani Group is setting up 1600 MW Project inJharkhand with dedicated Transmission System toBangladesh. Commissioning expected in December,2021 (may be earlier).

Bangladesh has finalized Draft Agreement on PPA withUpper Karnali Project in Nepal for supply of 500 MW(First case of implementation of the India’s revisedGuidelines on Power Trade).

About 1200 MW of power supply from India toBangladesh is happening, will rise to over 2500 MW byDecember, 2021.


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India – Nepal

400 KV Double Circuit Dhalkebar (Nepal) - Muzaffarpur(India) Transmission Interconnection has facilitatedenhancing power supply to Nepal from India to about700 MW. By the end of 2019, this may increase to 900MW including 200MW through other interconnections.When fully operational and completion of severaltransmission and sub transmission projects the 400 KVInterconnection will have potential to transfer 1000MW.

In a recent bilateral Joint Steering Committee meetingit has been agreed by both the countries to moveforward on yet another Cross Border TransmissionInterconnection Bhutawal (Nepal) - Gorakhpur (India), Indian portion to be implemented by JV of NEAand Power Grid of India.


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India – Nepal

Nepal and Bangladesh have set up bi lateral JSC andJWG co chaired by Power Secretaries on similar line aswith India for cooperation in power sector. A fewmeetings have already happened and areas ofcooperation have been identified.

The two projects Arun 3 and Upper Karnali, which wereawarded to the developers on the basis of InternationalCompetitive Bidding, have started construction. In nextabout five years these will enhance cross border tradeby about 1500 MW.


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India – Sri Lanka

In a recent meeting of JSC/ JWG, Sri Lanka has showndeep interest for Cross Border TransmissionInterconnection. Accordingly, Joint Technical Team hasbeen assigned the role of evaluating various optionsand preparing Project Report. It is expected that theProject Report would be finalized by the end ofNovember, 2019. This interconnection would pave theway for power trade not only between India and SriLanka, but also, taking advantage of the amendedCross Border Power Trade Guidelines, trading of powerfrom Nepal, and Bhutan to Sri Lanka through India.


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India – Myanmar

A small Cross Border Interconnection between Indiaand Myanmar has been established between Moreh(Manipur), India to Tamu (Myanmar), and about 3 MWis being supplied.

Joint Technical Team of the Joint Steering Committee isstudying the future requirements of Cross BorderInterconnections.


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India – Pakistan

Government of India, while answering a question in theParliament, confirmed about a 500 MW power supplythrough an interconnection between Amritsar (India)and Lahore (Pakistan). Thus, an in-principle acceptanceexists, but it is waiting for further finalization betweenthe two countries.

JOINT STUDY ON FUTURE TRANSMISSION

INTERCONNECTIONS

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HOW DO WE ACCELERATE THE PACE OF REGIONAL

POWER MARKET?

Focus on BBINM (Bangladesh, Bhutan, India, Nepal,Myanmar) and Sri Lanka may help to move the processfaster as has been the experience in last few years. Takingadvantage of the Institutional Framework, viz. JointSteering Committee Mechanism, we could plan to upscalethe level of Cross Border Trade.

CASA Project is in progress. Once India – Pakistan issue ofinterconnection is resolved, CASA and BBINMS couldemerge as one integrated grid.

Technically synchronous operations exist among India,Bhutan, and Nepal. In case of Bangladesh also this hasbeen agreed in principle. The Technical Teams couldfinalize the details and move forward. Synchronousoperations among these countries would by itself raise thelevel of power exchange.

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POWER MARKET?

Strengthening of transmission infrastructure to keep pacewith the level of transactions, to match with 50,000 MW ofCross Border transfer of power in the long run.

Sri Lanka – India Transmission Interconnection could betaken up on priority.

Similarly, the 765 KV Transmission System in the NorthEastern States of India, crossing Bangladesh to connectEastern Grid of India should preferably be taken up onpriority.

Developments of Hydro Projects in Bhutan and Nepalcould be a good back up for massive expansion of SolarPower capacity in India. All these countries could benefitfrom each other.

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POWER MARKET?

While Nepal could consider streamlining variousprocedures for clearances, decision making, andfacilitation for project development, Bhutan couldconsider different institutional and financing modelsrather than excessive emphasis on Inter-GovernmentalModel.

With price of Solar Power and Wind Power becominghighly competitive, high expectation on tariff from hydroprojects appear misplaced. The approach needs to changeto long term lending, back loading of tariff, and doingaway with the practice of free power to the Government.Unless these change marketing for hydro power would bea challenge.

Multilateral Agencies could consider collaborating witheach other to finance hydro projects and cross bordertransmission infrastructure, with long term lending, andwith such set of terms that the projects becomecommercially viable.

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POWER MARKET?

Intra-Country Transmission System and DistributionInfrastructure should keep getting strengthened, so as toderive the benefit of power trade and maximize access toelectricity for people at large and for business andindustry to grow.

Regulatory Framework and Grid Management have to bealigned on a regional basis. A beginning has been madethrough the Power Secretaries Round Table, facilitated bythe World Bank in which Regulatory Commissions arebeing invited for facilitating interactions andcollaborations among them to achieve at the requiredalignments of the Regulatory codes, processes andprocedures.

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THANK YOU

Documents

POWERING SOUTH ASIA ECONOMIC COOPERATION · India –Sri Lanka In a recent meeting of JSC/ JWG, Sri Lanka has shown deep interest for Cross Border Transmission Interconnection. Accordingly,