SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY INTEGRATION (SARI/EI) Agenda Notes

Transcription

1 SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY INTEGRATION (SARI/EI) Agenda Notes 3 rd MEETING OF TASK FORCE 2 ADVANCEMENT OF TRANSMISSION SYSTEMS INTERCONNECTION 25 th 26 th February, 2015 Colombo, Sri Lanka S

2 SOUTH ASIA REGIONAL INITIATIVE FOR ENERGY INTEGRATION (SARI/EI) Agenda Notes 3 rd MEETING OF TASK FORCE 2 ON ADVANCEMENT OF TRANSMISSION SYSTEMS INTERCONNECTION 25 th 26 th February, 2015 Colombo, Sri Lanka

3 Agenda 3 rd Meeting of Task Force 2 on Advancement of Transmission Systems Interconnection 25 th -26 th February, 2015 Colombo, Sri Lanka Meeting Objectives: Review latest developments in Nepal power sector including the status of Dhalkebar (Nepal) - Muzaffarpur (India) 400 kv Transmission Line Cross-Border Interconnection Review latest updates on the planned and proposed Cross-Border Transmission lines between India - Bangladesh Present and discuss the progress and preliminary draft findings of the study on the Assessment of the Electricity Trading Potential in the South Asia region Presentation on India s Cross Border Interconnections and Power Trade Discuss and seek suggestions/recommendations from the members on the draft findings of the study Assessment of the Electricity Trading Potential in the South Asia region *To be confirmed Day 1: 25th February, 2015 INAUGURAL SESSION Welcome address: Ms. Monali Zeya Hazra, Regional Energy Manager and Clean Energy Specialist SARI/EI, USAID/India Key note address: Mr. M.M.C. Ferdinando, Secretary, Ministry of Power & 10:00 A.M. 10:30 A.M. Energy, Government of Sri Lanka* Special address: Mr. Upali Daranagama, Additional Secretary, Ministry of Power & Energy, Government of Sri Lanka Vote of Thanks: Mr. V.K. Kharbanda, Project Director, SARI/EI, IRADe 10:30 A.M. 11:00 A.M. Group Photograph and High Tea SESSION-II 11:00 A.M. 11:30 P.M. Presentation on SARI/EI Program Review: Progress of activites undertaken in and Annual Work Plan for : Mr V K Kharbanda, Project Director, SARI/EI-IRADe 11:30 P.M. 12:00 P.M. Presentation on the latest developments in Nepal Power Sector including status of the Dhalkebar-Muzaffarpur 400 kv Cross-Border Interconnection: Mr. Surendra Rajbhandari, Director, Nepal Electricity Authority 12:00 P.M. 12:30 P.M. Presentation on the latest updates of planned and proposed Cross-Border Transmission lines between India-Bangladesh: Mr. Arun Kumar Saha, Superintending Engineer, Power Grid Company Of Bangladesh Ltd 12:30 P.M. 1:00 P.M. Presentation on Cross Border Interconnection and Power Trade with Neighbouring Countries: Mr. Goutam Roy, Director, System Planning and Project Appraisal, Power Systems, CEA, India 1:00 P.M.-2:00 P.M. Lunch SESSION-III 2:00 P.M.-3:30 P.M. Presentation on the progress and preliminary findings of the study on Assessment of the Electricity Trading Potential in the South Asia region : ICF International 3:30 P.M.-4:30 P.M. Discussions followed by suggestions/recommendations from the members on the preliminary findings of the study on Assessment of the Electricity Trading Potential in the South Asia region 4:30 P.M. 4:45 P.M. Summary & the Way Forward 4:45 P.M. 5: 00 P.M. High Tea Day 2: 26th February, 2015 SITE VISIT 8.15 A.M P.M. Site Visit to Ugadanavi Power Station - 270MW Combined Power Plant, Kerawalapitiya (North of Colombo)

4 South Asia Regional Initiative for Energy Integration (SARI/EI) Background The countries of South Asia (SA), comprising Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, are home to one-fifth (23 percent) of the world s population. Over the last two decades, South Asia has been one of the fastest growing regions in the world, with an average annual growth rate of six percent as measured by GDP per capita. This robust macroeconomic growth has translated into declining poverty and significant improvements in human development indexes in the region. The average annual growth rate of six to seven percent is expected to be maintained over , driven by increased export demand, policy reforms, stronger investment activity, and normal agricultural production. To sustain high-level economic growth in the long run, it is imperative that the electricity sector grows in a sustainable manner, as power is one of the fundamental inputs to the economy. However, despite this impressive macroeconomic growth, the power sector in the region has not been able to keep pace, and each of the countries continues to experience electricity shortages and poor quality of supply due to various factors such as the sub-optimal utilization of energy resources both domestic & imported and inadequate investments in the power sector. The existing power shortages and growing import of fossil fuels impose a heavy cost of energy insecurity to the region. Thereby, the need to ensure energy security in today s economic climate is imperative and urgent as the gap between the latent demand and supply of energy is a major concern for the South Asian region and the only long-term solution is the sustained increase in regional energy cooperation among South Asian nations. USAID s South Asia Regional Initiative/Energy s (SARI/E) role over the past decade in advocating energy cooperation in South Asia has transited to the next phase of advancing regional energy integration and Cross-Border Electricity Trade. This fourth and the final phase titled South Asia Regional Initiative for Energy Integration (SARI/EI) is designed to build upon SARI/Energy s successful initiatives of the past to move South Asian countries towards increased regional energy security. The program addresses policy, legal, and regulatory issues related to energy in the region; promote transmission interconnections; and work towards establishing a regional market exchange for electricity. PROGRAM MESSAGE: The main message of the program is to Promote integration of Energy Systems and enhance Cross- Border Electricity Trade (CBET) among the South Asian countries by focusing on the following three development outcomes for overall socio-economic development of the region: Coordination of Policy, Legal and Regulatory Framework The key result of the Harmonization of Policy, Legal and Regulatory Issues component is to create the enabling systemic conditions for a sustainable market for investment and implementation of Cross-Border Energy Trade. Advance Transmission Systems Interconnection The key result of the Advancement of Transmission Systems Interconnection component is to create the enabling, systemic conditions for a sustainable market for investment and implementation of sub-regional bilateral transmission interconnections beginning with the eastern sub-region of South Asia. South Asia Regional Electricity Markets The key result of this component on Establishment of South Asia Regional Energy Market is to create the enabling and systemic conditions for a sustainable market for energy trading and exchange among the South Asian countries. The overarching objective of the South Asia Regional Initiative for Energy Integration (SARI/EI) program is to develop a common template for technical and commercial aspects of power

5 exchange among the South Asian countries. It intends to create the right enabling environment to support the establishment of a South Asian electricity market, gain consensus and support from the key decision makers and stakeholders in the South Asia region. Importance of Task Force 2 on Advancement of Transmission Systems Interconnection Importance of Task Force 2 on Advancement of Transmission Systems Interconnection Transmission interconnection is key to Cross Border Electricity Trade (CBET) in South Asia, and is a necessary precondition to regional electricity market integration as well as advancing energy access to populations in South Asia who are underserved or un-served. South Asia is partially energy integrated region in the world comparatively. Very limited Cross-Border Transmission Interconnections and Cross Border Trading Transactions are taking place i.e., India Bhutan, India-Bangladesh and to a lesser extent between India-Nepal. The problem of regional grid integration is influenced by political, economic, technical and social considerations. Although the need for adequate transmission infrastructure to support CBET seems obvious, there are various requirements needed to ensure its timely development and construction. For the South Asia region, without additional cross-border interconnection, the business case for development of additional hydro resources in the north or wind resources in the south will be much more difficult to achieve. While there are development challenges in linking the several South Asia country electricity grids, these connections and harmonizing the systems is well within the state of art technologically. Cross-Border Electricity Trade efforts begin with the identification of bilateral objectives and an examination of how individual national planning efforts can utilize crossborder interconnection as one tool to meet unserved load across the broader region. An effective generation and transmission infrastructure is critical to support cross-border power trading. Generation development is largely driven by power purchase agreements that can support the long-term financing of this capital-intensive investment. Transmission assets are enablers and they by themselves, generate market revenues for the asset owners and are subject to competition. Transmission assets provide the means by which bottled up generation can realize its true value and efficiently serve the needs of distant customers. At the time investment decisions are being made for generation, there needs to be a clear implementable plan to assure that the necessary transmission can be constructed to maximize the output of that generation on the grid. A critical next step is to develop the operational protocols and formulate required coordination procedures for stable regional/national grid operations so as to support the effective development of several cross-border interconnection projects that are under execution in South Asia and also the ones to come up in the near future. The key intended result of the Task Force 2 on Advancement of Transmission Systems Interconnection component is to create the enabling, systemic conditions for a sustainable market for investment and implementation of bilateral transmission interconnections. It is also to identify interconnecting points for technically and economically feasible Cross-Border Interconnections considering generation capacity additions over the next years, evaluation of the electricity available for Cross Border transfer and formulation of the required operational procedures for stable regional/national grid operations. Task Force 2 will develop a road map that would give prospective investors a comfort level on a long term basis to set up power plants within the South Asia region for electricity export / import of power without congestion.

6 In view of the above, the Task Force on Advancement of Transmission Systems Interconnection comprises of the following nominated members. Task Force 2 (TF2) Members : Advancement of Transmission Systems Interconnection Name Designation Organisation Country Mobile Office Mr. Arun Kumar Saha Superintending Engineer Power Grid Company Of Bangladesh Ltd Bangladesh / arunsaha60@gmail.com Ms. Kamani Jayasekera Deputy General Manager (Transmission and Generation Planning) Ceylon Electricity Board Sri Lanka dgmtgp@ceb.lk Mr. Karma Tshewang Head/Chief Engineer Transmission & Power Systems Division The Department of Hydropower & Power Systems, Ministry of Economic Affairs Bhutan ktshewan@gmail.com, pcd.doe@gmail.com Mr. Surendra Rajbhandari Director Nepal Electricity Authority Nepal surendra13.rajbhandari@ gmail.com Mr. Shekeeb Ahmad Nessar Chief Operating Officer (COO) Da Afghanistan Breshna Sherkat(DABS) Afghanistan , shekeeb.nessar@dabs.af Mr. Goutam Roy Director, System planning and Project Appraisal, Power Systems Central Electricity Authority India goutam.roy@nic.in

7 Terms of Reference: Task Force 2: Generation and Transmission Infrastructure Planning Task Force 2 (TF2) will comprise of members engaged in the power system planning, operations and design functions of the participating South Asia nations. The key deliverables of this Task Force are as follows: Assessment of the economically feasible potential for electricity exchange / trade in the South Asian region over the next years. Development of minimum inter-country coordination procedures & standards required with respect to power system planning, design and operations, in consistent with the legal and regulatory practices that would facilitate such electricity exchange / trade. 1. Objective: TF2 will identify import-export points for technically and economically feasible Cross Border Interconnections considering generation capacity additions in the pipeline over the next years, evaluate the electricity available for Cross Border Exchange transfer and formulate required coordination procedures for stable regional/national grid operations. TF2 will develop a road map that would give prospective investors a comfort level on a long term basis to set up power plants within the South Asia region for electricity export / import with a minimum level of power flow congestion. 2. Constitution of Task Force: Task Force shall be constituted with one member from each country from their power system planning / operations / design functions. 3. Term of Reference: 3.1. Evolve a South Asia Regional Electricity Plan preferably up to the year 2035 based on country specific master plans and in consultation with country planning agencies Review generation capacity of addition program and identify the measures required to facilitate any additional corresponding infrastructure/ institutional development or augmentation required to achieve target outcomes in capacity addition up to the year Review country specific supply demand projections up to year Identify electricity that would be available for Cross Border Transfer over different time periods with technical and economic feasibility Review power system adequacy under different load flow conditions and suggest remedial measures against any congestions arising Review the extent to which Cross Border Power Transfer can be accommodated over interconnections planned and the technical improvements required to enhance such transfer Review of existing country criteria and practices on the following aspects and suggest any improvements based on proven international best practices Long term Electricity Demand Forecasting.

8 3.9. Long term Power Generation and Transmission Planning Open access in Power Transmission Power Transmission Congestion Management Power Transmission Pricing and Loss Sharing Balancing mechanism for unscheduled power input/output deviations Power Transmission system design, connectivity, and grid operation codes.

9 4. Time Schedule: 4.1. The task forces shall meet periodically The TF shall prioritize the various deliverables with a view to enhancing public/private investment in power system expansion and deliver them on a timely basis The activities assigned shall be completed within a period of 24 months from the date of constitution of the Task Force. 5. Program Secretariat: 5.1. The Program Secretariat shall be provided by IRADe. It would facilitate holding of Task Force meetings, prepare agenda, coordinate the meetings and provide minutes In case the Task Force finds the need for a study or assistance of an external consultant for advice, the Program Secretariat would arrange for the same from its internal resources or by engaging a consultant. 6. Working Groups: 6.1. The Task Force can set up working groups to carry out some of the functions. If a working group consists of members of two or more countries then the Program Secretariat shall formally form a working group, arrange and coordinate its meetings also If a sub group is formed within a country for facilitating the functioning of the country s Task Force member then the respective country may form such group on its own and keep the Program Secretariat informed of the same. 7. Deliverables: a) Review the supply demand scenario up to b) Review of Power generation capacity addition program for infrastructure, availability and readiness of enabling institutions required to achieve planned outcomes in capacity addition up to the year c) Assess CBET opportunities in years time frame. d) Prepare Regional Electricity plan in years time frame in periods of 5 years based on National plans. e) Check and formulate risk analysis & mitigation policies, if any. f) Standard Technical specifications for equipment of different voltage levels with parameters and list of codes to be prescribed for cross border equipment. g) Review open access and congestion management policies. h) Evolve transmission cost and loss sharing guidelines. i) Develop coordinated system operating procedures to be adopted for import export tie lines. j) Any other report to meet the objectives.

10 SARI/EI Activities: Progress of and Plan for Accomplishments and Key Activities ( ): Organised high level South Asia Regional Inaugural Conference of SARI/EI on Cross-Border Electricity Trade at New Delhi, India on October 4 th -5 th, Prepared and Published a Background Paper on Prospects for Regional Cooperation on Cross-Border Electricity Trade in South Asia. Successfully obtained Government of India s nomination to the Project Steering Committee and Task Forces. Project Steering Committee: Organized the 2 nd Project Steering Committee Meeting, SARI/EI on 8 th January, 2014 at New Delhi, India. Task Force 1: Organized the 2 nd meeting of Task Force-1 on Coordination of Policy, Legal and Regulatory Framework at Colombo, Sri Lanka on 19 th & 20 th February, Organized the 3 rd meeting of Task Force 1 on Coordination of Policy, Legal and Regulatory Framework at Thimphu, Bhutan on 4 th -5 th June, Awarded the Task Force 1 study on Review of Electricity Laws, Regulations, Policies (EL&R&P) of South Asia Countries to Mercados Energy Private Limited. Task Force 2: Organized the 2 nd meeting of Task Force 2 on "Advancement of Transmission Systems Interconnection on 16 th April-17th April, 2014 at Kathmandu, Nepal. Awarded the Task Force 2 study on Assessment of the Electricity Trading Potential in the South Asian region to ICF International. Task Force 3: Constitution of Task Force 3: Formation of Task Force 3 on South Asia Regional Electricity Markets with nominations from South Asian countries. 1 st meeting of Task Force 3 on "South Asia Regional Electricity Markets" on 29 th -30 th April, 2014 at Mumbai, India. Road Map of South Asia Regional Electricity Markets Organised Study Tour to European Regional Power Markets (Amsterdam & Paris) from July 13 th 19 th, Successfully organized the South Asia Investor s Workshop on Cross-Border Electricity Trade in association with Confederation of Indian Industry (CII) on 24 th -25 th September, 2014 at New Delhi, India. Prepared and Published a Concept Paper on Cross-Border Electricity Trade in South Asia: Challenges and Investment Opportunities Task Force 2 on "Advancement of Transmission Systems Interconnection : The Task Force 2 is working on the Advancement of Transmission Systems Interconnection in South Asian countries. To meet the deliverables of the Task Force 2 as defined in the Terms of Reference, one has to create the enabling systematic conditions for a sustainable market for investment and implementation of bilateral transmission interconnections. The Task Force 2 main objective is to identify import-export points for technically and economically feasible cross border interconnections considering generation capacity additions in the pipeline over the next years, evaluate the electricity available for cross border exchange transfer and formulate required coordination procedures for stable regional/national grid operations.

11 The Task Force will develop a road map that would give prospective investors a comfort level on a long term basis to set up power plants within the South Asia region for electricity export /import with a minimum level of power flow congestion. Since Task Force 2 deals mostly with the technical and operational issues involved in the interconnection, therefore Task Force 2 meetings agenda shall be designed to address both the technical and operational issues concerning the cross border interconnections. Task Force 2 meeting shall be designed with an aim to achieve objectives and deliverables of the task forces. Task Force 2 Activities ( ): Organized the 2 nd meeting of Task Force 2 on "Advancement of Transmission Systems Interconnection (16 th April-17 th April, 2014 Kathmandu, Nepal) Awarded the Task Force 2 study on Assessment of the Electricity Trading Potential in the South Asian region to ICF International. 2nd meeting of Task Force 2 on "Advancement of Transmission Systems Interconnection (16 th April-17 th April, 2014 Kathmandu, Nepal) The 2nd Meeting of Task Force 2 on Advancement of Transmission Systems Interconnection was held from 16th 17th April, 2014 at Kathmandu, Nepal. Task Force Members from various South Asian countries along with representatives from IRADe and USAID attended the meeting. Country presentations were made by respective members on Generation & Transmission Planning, Technical & Operational issues related to Transmission Systems Interconnection and prospects &challenges as far as Cross-Border Electricity Trade infrastructure is concerned. IRADe also made presentations on Infrastructure Financing in South Asian Power Sector and Features of Indian Electricity Grid Code. Studies/Exercises in order to achieve deliverables of Task Force 2 were discussed and IRADe presented the terms of reference of the studies on Trading Potential and Harmonization of Operating Procedures such as Grid codes, protection and equipment standards, etc. The same was deliberated upon in detail during the meeting. Based on the two Day s extensive deliberation on Advancement of Transmission Systems Interconnection prevailing in South Asian countries, IRADe s Project Secretariat put up the Summary and Way Forward as follows:

12 Need to build requisite transmission infrastructure for regional and bilateral power trade. Need to have Regional Transmission Master Plan for regional power trade. Transmission System Master Plan and Generation Expansion Plan related to Regional Power Trade needs to be coordinated among South Asian countries. Need to harmonize technical standards and grid codes among the South Asian nations. Need to have a holistic approach for the development of South Asian Power Sector covering Generation, Transmission and Distribution. Need to have a conducive environment for private sector participation to harness hydro potential in the South Asian region. Need to identify country wise trading potential over a typical day, week, month, season and annually for each of the years period. Trading Potential shall be assessed based on the commissioning schedules of the new generating stations and their associated transmission systems as prepared by the respective countries. Need to have an integrated and holistic road map for the development of regional optimal transmission systems. Need to review the proposed/existing transmission interconnections for import/export of electricity. Scope of Work for the studies relating to Trading Potential and Operating Procedures to be carried out was discussed and deliberated. IRADe shall initiate the process of carrying out the studies on Trading Potential and Operating Procedures either in house or through a consultant on the basis of Scope of work finalized. Progress for the studies relating to Trading Potential and Operating Procedures to be presented and deliberated before the Task Force 2 Members in the next meeting. A combined meeting of all the Task Forces was proposed to have inter se coordination activities of the respective task forces. Need to support SAARC Energy Center for Intergovernmental Agreements. Task Force 2 Studies: Study on Assessment of the Electricity Trading Potential in the South Asia region : The main objective of undertaking this study/exercise is to identify the trading potential in (MW, MWh.) of the South Asian nations (Afghanistan, Bangladesh, Bhutan, India, Pakistan, Nepal, Sri Lanka & the Maldives) over a period of next years. The trading potential will be assessed by reviewing the following: Existing long term Demand-Supply (D-S) projection scenarios of the participating countries. If long term projections are not available, study will be carried out for projecting demand supply for the South Asia nations. The above study shall also take in to account the present Demand-Supply scenario and the expected developments in the next years by taking in to account the Cross Border Electricity Trade (CBET) potential as a means to meet the additional demand of power by each country and/or by exporting surplus power through CBET to other South Asian Nations. The study shall also identify country wise trading potentials over various seasons and annually for each of the years period. The study has been awarded to ICF International and is currently under progress. The draft report is expected by July 2015.

13 Study on Harmonization of Grid Codes, Operating procedures and standards to facilitate/promote Cross Border Electricity Trade in the South Asia region : The main objective of undertaking this study is to: Review of the Grid Codes of the respective South Asia nations covering procedures/codes/ standards such as power system operating procedures, protection code, metering code, connection code, planning code, system security, demand estimation systems, outage planning, recovery procedures, etc. Identify relevant provisions in each of the above documents operating procedures/ Grid codes and standards that have the potential to impact cross border electricity trade ; and Suggest possible measures with necessary changes to be made in each of the above of the respective South Asian countries to facilitate/promote optimal and economic cross border electricity trade in the region. The study on Harmonization of Grid Codes, Operating procedures and standards to facilitate/promote Cross Border Electricity Trade in the South Asia region is expected to be awarded by February, The draft report is expected by August/September, Key Activities ( ): The year /16 will focus on Task Force meetings, finalization of the recommendations emerged from Task Forces and consensus building. By taking in to account the overall progress of the SARI/EI program so far, key lessons learnt from , inputs of Project Steering Committee, recent positive developments (like signing of Power Trade Agreement (PTA) between India and Nepal; adoption of Framework agreement on Energy (Electricity) Cooperation among SAARC member countries) and Program Implementation Plan, the essence and strategy of the Plan for is to focus on the following: Intensive task force meetings where each of the Task Forces will work to address the specific issues concerning CBET and achieve respective deliverables; Demand driven studies; Country specific consensus building for buy in of the Task Force findings; Study Tour to Regional Power Markets such as Greater Mekong Region, South African Power Pool,Nord Pool, etc. ; Analytical study on Economic Benefits of Cross-Border Electricity Trade; Technical Assistance to Nepal Tangible outputs from Task Force 2 by the end of : By the end of , Task Force 2 will produce the following outputs: Member s findings on demand-supply projections vis-a-vis trading potential for the region over a time period of years and a draft report on the same. Member s findings on Harmonization of Grid Codes, Operating procedures, standards, etc. to facilitate/promote Border Electricity Trade in the South Asia region "and a draft report on the same. Outreach /Country specific consensus building workshops/meetings (Task Force Findings/ Recommendations. Initiate the preparation of long term South Asia Electricity Master Plan.

14 Session: II Latest developments in Nepal Power Sector including status of the Dhalkebar-Muzaffarpur 400 kv Cross-Border Interconnection: Mr. Surendra Rajbhandari, Director, Nepal Electricity Authority India-Nepal has concluded a historic agreement on Electric Power Trade, cross-border transmission interconnection and grid connectivity commonly referred as the Power Trade Agreement (PTA). Some of the key provisions of the PTA are as follows: Enabling cooperation in the power sector, including developing transmission interconnections, grid connectivity, power exchange and trading through the governmental, public and private enterprises of the two countries on mutually acceptable terms. It encourages and facilitates investments including joint venture investments between the two countries in power sector on mutually agreed terms. Cooperation on various aspects of policy harmonization for the realization of cross-border interconnections, grid connectivity & power trade and shall work mutually towards resolving issues relating to barriers including tariff, fees, taxes, duties or charges of similar effects, if any, in the cross-border exchange and trade of electricity. To allow the authorized/licensed electricity producers/buyers/traders of each country to engage in cross-border electricity trade including Power Exchanges. Power Trade Agreement (PTA) has set a platform for development of large hydro-power generation and cross-border transmission infrastructures and related investments. In the year 2006, Nepal Electricity Authority, Nepal (NEA) and IL&FS Infrastructure Development Corporation (IIDC) with support from the Ministry of Water Resources (MOWR)/Ministry of Finance (MOF) Nepal and Embassy of India in Nepal took initiative to facilitate the development of transmission interconnection between India and Nepal. For exchange of power, a 400KV DC interconnection of about 145 Km, to be initially charged at 220 KV, from Muzaffarpur (in India) to Dhalkebar (in Nepal) was decided to be implemented. The presentation will cover all the latest developments/updates in Nepal Power Sector.

15 Session-II Latest updates of planned and proposed Cross-Border Transmission lines between India-Bangladesh Mr. Arun Kumar Saha, Superintending Engineer, Power Grid Company of Bangladesh Ltd Bangladesh has prominently put Cross-Border Electricity Trade in their priority to achieve energy security and is planning to procure 3500 MW power through the regional power market by The current regional power interconnection line between India-Bangladesh is from Baharampur (India) to Bheramara (Bangladesh) 400 KV line. This interconnection is 100 Km long, where 73 Km long transmission line is situated in Indian side and 27 Km in Bangladesh. The power is flowing through this regional link from October The other proposed interconnection which is under consideration is a 800 KV HVDC Transmission line from Rangia/Rowta in Assam (North East Region-India) to Barapukuria/ Jamalpur in Bangladesh and further to Western Region/Northern Region of India. The transmission capacity of this proposed interconnection is 6500 MW from Assam to Bangladesh. Bangladesh shall draw about 500/1000 MW and about 5500 MW will be transferred to the North Region/Western Region, India. This will be a win-win situation for both the countries. Apart from the above mentioned interconnection, Bangladesh has also proposed to procure power from Silchar (India-750 MW), Pallatana (India-250 MW), Myanmar 500 MW and Kishanganj (India-500 MW) by constructing suitable interconnecting lines. The presentation will cover all the latest updates of planned and proposed Cross-Border Transmission lines between India-Bangladesh.

16 Session III Progress and preliminary findings of the study on Assessment of the Electricity Trading Potential in the South Asia region : ICF International I. Objective of the study: The main objective of undertaking this study/exercise is to identify the trading potential in (MW, MWh.) of the South Asian nations over a period of next years. The trading potential will be assessed by reviewing the 1) Existing long term Demand-Supply (D-S) projection scenarios of the participating countries and 2) If long term projections are not available, study will be carried out for projecting demand supply for the SA nations. The above studies shall also take in to account the present D-S scenario and the expected developments in the next years by taking in to account the Cross Border Electricity Trade (CBET) potentials as a means to meet additional demand of power by each country and/or by exporting surplus power through CBET to other South Asian Nations. The study shall also identify country wise trading potentials over various seasons and annually for each of the years period. II. Terms of Reference for the study: 1. The study shall take into account all types of Generating plants viz Hydro, Thermal, Nuclear and Renewable. 2. Collect, compile, review and analyse the existing /prevailing long term D-S projections/data available in respect of each SA country. This shall include different generation capacity addition scenarios. The sources of data can be CEA (India), CEB (Sri Lanka), Bangladesh Power Development Board (Bangladesh), NEA (Nepal), WAPDA (Pakistan), MEA (Afghanistan). Data from other sources like previously conducted studies by reputed organisations such as ADB, SARRC & WB related to ascertaining the Demand-Supply forecasts, may also be utilized in consultation with IRADe. 3. To assess whether existing Demand-Supply projection have adequately been taken up and have explored the CBET potentials of each SA country from the trading perspectives and in the time horizon of years. 4. If the data including the perspective generation capacity addition projections are not available from various sources for the time horizon of years, a proper methodology needs to be adopted to arrive at reasonable D-S projections to explore the CBET potential of each SA country. The methodology to be adopted for arriving at these projections shall be finalized in consultation with the respective TF-2 country members and shall include a sensitivity analyses of the same. Based on the approved methodology, Country wise projections shall be made in respect of the various seasonal scenarios (including peak/off-peak conditions) and in terms of both MW and MWhr for the specified time horizon of next years. 5. The above D-S projections shall include the year wise trading opportunities that arise out of seasonal variations, time zone difference, difference in load curve, different weekends and holidays being followed in each SA nation.

17 III. Deliverables: 1. (a) Submit a Draft report on the findings/analysis on the existing Demand-Supply projections (MW, MWh) of each South Asian Nations. (b) Wherever the data projections are not available up to the specified time horizon, a separate draft report shall be submitted, identifying the shortcomings and the projections (including the assumptions) made in respect of the Demand-Supply (MW, MWh) in respect of each South Asian Nation for a period of next years covering plant wise break up of generation and the fuel being used etc. Both of the above draft reports shall include a brief on the Method used for the D-S projections and the Sensitivity analysis carried out on the same. Both of the Draft reports shall also include an assessment of the year wise opportunities available for meeting additional demand and exporting surplus power through Cross Border Electricity Trade by each country. 2. Make presentation(s) on the above Draft reports to the TF-2 members as and when required. 3. Submit an interim Report, incorporating all suggestions/recommendations to the respective provisions by the TF2 members and IRADe. 4. Make presentation(s) before the TF-2 members, Project Steering Committee (PSC), IRADe and USAID on the interim report, as and when required. Presentation Key Points: ICF International will provide an update of the work done till date under this assignment. A review of historical power Demand-Supply trends and Demand-Supply projections as per respective power system master-plan/expansion plan for all South Asian nations will be presented. The study has been carried out through collation of data available in public domain. In case of countries for which projections till the year 2034 are not available, an estimation based on appropriate assumptions has been developed. The methodology followed for estimation of unrestricted electricity demand, electricity supply and peak demand forecast for various countries will be shared. The power sector data gathered till date for each South Asian country will be discussed along with the information gaps that need to be filled. A coalesced qualitative-quantitative approach has been followed to capture the dynamics of power markets of all South Asian countries and address specific objectives of the study on assessment of the Electricity Trading Potential in South Asia. As a next step, ICF will develop a modeling case using ICF s I-IPM (India Integrated Planning Model) to assess the electricity trading potential in the South Asian region under different scenarios. Towards populating the modeling framework, ICF will develop assumptions on demand, supply, future generation and transmission builds, fuel supply and renewable forecasts besides other areas. Details on these assumptions, parameters on which data for member countries is needed and sample model run results for India will be discussed during the session.

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