CROSS BORDER ELECTRICITY TRADE

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1 CROSS BORDER ELECTRICITY TRADE Dr. Rajiv K Mishra Executive Director

2 PILLARS OF CROSS BORDER TRADE SAARCC MARKET DESIGN Scheduling & Dispatch Energy Accounting Transmission Capacity Regulatory Framework Politicoeconomic relationship & Commercial Agreements

3 Currently with Bhutan and Nepal through PTC India Ltd. Bangladesh trade commenced in Dec MW export by NTPC and 250 MW through PTC India-Bhutan 10,000 MW Plan by 2020 Sri Lanka Transmission System proving too expensive to be commercially viable Import of electricity not under restricted category presently Bangladesh 500 Bhutan 1,400 Nepal 100 Trade with Neighboring Countries (MW) ,000 1,200 1,400 PTC INDIA CROSS BORDER TRADE 3

4 Indian Grid Capacity Expansion underway to alleviate congestion FLOWGATES Mainpuri-Hapur (765 kv) - March 2015, Mainpuri Greater Noida (765 kv) - July 2015 Bara-Mainpuri (765 kv) March 2015 Rangpo-Kishenganj 400 kv - Nov 2014 Alipurduar Salakati (220 kv) - Jan 2015 Alipurduar-Bangaigaon (400 kv) - Jan 2015 Alipurduar-Tala (400 kv) - Jan 2015 Alipurduar-Puntsangchu (Bhutan) (400 kv) - Jan 2015 Alipur Duar Siliguri (400 kv) - Jan 2015 Jaipur-Gwalior (765 kv) - Mar 2014 Upgradation of Agra- Gwalior from (400 kv to 765 kv) - Jun Gaya-Dumka (400 kv) - Nov 2018 Maithon-Dumka (400 kv) - Oct 2018 Maithon-Durgapur (400 kv) Gaya-Nabinagar (400 kv) - Nov 2015 Purulia-Ranchi (400 kv), - Dec 2015 Jamshedpur Chaibasa (400 kv) -Nov 2017 Jamshedpur-Adhunik Power (400 kv) - Mar 2013 Raipur-Wardha (765 kv) - Dec 2013/Jan 2014 Vijaywada-Nellore (400 kv) - Mar 2014 Nellore-Chennai (400 kv) - Mar 2017 Almaty-Thiruvallem (400 kv) - Oct 2017 Almaty-SV Chatram (400 kv) -This year Almaty-Chennai JV (400 kv) - Oct 2014

5 DEVELOPMENT OF SAARC GRID TRANSMISSION INFRASTRUCTURE 1000 MW transmission capacity and optimal utilization 600 MW through Long Term MW through Medium/Short Term MW through Power Exchange 5

6 SAARC Power Exchange (2030) India - Hub for large thermal projects 450GW Nepal and Bhutan - Hub for hydro generation 35,000MW Bangladesh would use its gas reserve for its generation India / Pakistan / Bangladesh would be sink SAARC Regional consumption of electricity 600GW in /8/2016 6

7 SE Asian countries - most rapidly developing countries Large & growing population - Low per capita consumption Energy is fundamental to economic growth of a country Huge demand for energy - limited domestic supply Power shortages hamper growth prospects Some countries spending >10% of their forex spend on fossil fuels, hence the need for diversification Cross-border power trade, on the other hand, can be a huge revenue earner (e.g. Bhutan) NEED FOR SOUTH ASIA ENERGY COOPERATION 2/8/2016 7

8 Energy mix different for different countries India - one of the largest coal reserves in the world Bangladesh gas basins Nepal & Bhutan huge hydro potential Excellent solar and wind potential in the region Thus, tremendous possibilities for regional energy cooperation Regional integration or trade High potential but currently low Sub-regional cooperation between India, Nepal, Bhutan and Bangladesh has high prospects Sharing of land boundaries Positive response from these countries PROSPECTIVE SOUTH ASIA ENERGY COOPERATION 2/8/2016 8

9 Bhutan s Govt. policy supports hydro power development as one of the key component of economic development Ongoing Trade India purchasing power from Chukha, Kurichhu and Tala projects in Bhutan through PTC > 5000 MUs annually Most significant revenue earner for Bhutan Huge hydro potential - ~23000 MW India and Bhutan further collaborating to develop 10,000 MW aggregated capacity by year 2020 Transmission plans are already on anvil to import power for meeting Indian demand Power system integration of India, Bhutan and Bangladesh is possible depending on bilateral or tripartite agreement Transmission network through Bangladesh territory could relieve pressure on chicken-neck area and would be more economical PROSPECTIVE INTEGRATION WITH BHUTAN 9

10 Govt. has prioritized hydro power development and encourages private investment Enormous hydro potential - ~42000 MW Only 2% has been exploited Ongoing Trade Moderate level MW PTC supplies MUs annually to meet Nepal s emergent load during winter months (low hydro) Nepal expected to be surplus by year MW capacity by 2020 against demand of 2000 MW Could be a potential source of power for India and Bangladesh New 400 kv Dhalkebar-Muzaffarpur link being built up Existing India-Nepal transmission links are also being strengthened PROSPECTIVE INTEGRATION WITH NEPAL 10

11 Bangladesh heavily dependent on gas resources Further exploration (both onshore and offshore) Possibilities of supplying gas or gas-based power to India With a view to change its energy mix, Bangladesh procuring 500 MW coal based power from India HVDC power link with capacity of 500 MW has been set up Can be augmented to 1000 MW This will open new opportunity for exchange of power Bangladesh can take base-load thermal power and supply gas based power during peak hours to India Two countries may also think of jointly setting up power plant in each other s territory or in a third country (Nepal or Bhutan) E.g. A gas-based plant may be set up in Bangladesh exclusively for India or a coalbased plant in India exclusively for Bangladesh PROSPECTIVE INTEGRATION WITH BANGLADESH 11

12 SRI LANKA Power trade likely to start from after completion of 285 km high capacity transmission link (50 km submarine) Initial capacity 500 MW, can be ramped up to 1000 MW Will help Sri Lanka reduce its use of expensive fuels (gas, oil) and import cheaper power PAKISTAN Proposal aimed at setting up transmission infrastructure on a jointownership basis is being considered Will facilitate transfer of around 500 MW of electricity PROSPECTIVE INTEGRATION WITH SRI LANKA & PAKISTAN 12

13 Firm Political will PPP and Private CB Merchant Transmission Enactment of enabling provisions to permit cross border trade Harmonizing laws and regulations governing commercial cross-border energy trade Public Private partnership (PPP) for cross border energy projects Strengthening Infrastructure - Transmission interconnections upto feed points. PRIORITIES Ensuring that electricity tariffs are market driven for the region

14 Transmission Infrastructure for Cross- Border on IPTC route Infrastructure to be optimally utilized through long term power purchase/sale agreements 10-15% of the transmission capacity to be utilized on STOA may be through exchange WAY FORWARD 14

15 A PTC India Presentation Thank You