SAARC Framework Agreement for Energy Cooperation
This SAARC Framework Agreement for Energy Cooperation was pending since 2010, and was signed in October 2014. It was touted to be a crucial step towards a SAARC Market for Electricity (SAME) on a regional basis. The key objective of this agreement is to improve power availability in the entire region and facilitate integrated operation of the regional power grid.
Though the interlinking of electrical grids via high voltage transmission lines across the international borders is a standard practice across the world, yet it has yet to fructify in South Asia region. Currently, following are examples of such grids:
- The Union for the Coordination of the Transmission of Electricity (UCTE), which is now called “Synchronous Grid of Continental Europe”, is the largest interconnected grid around the world covering around 24 countries of Europe.
- Eastern Interconnection covers Eastern United States and Canada, while Western Interconnection covers Western US, Canada and parts of Mexico.
Analysing Rationale / Prospects of SAARC Grid
A look at important facts and figures of the countries would help us to ascertain the rationale and prospects of the grid.
Afghanistan
Afghanistan currently makes 600MW of electricity and around 2/3rd of its population is yet to have access to electivity. Most of this 600MW is hydro power, followed by fossil fuels and solar energy. It also imports energy from Uzbekistan via a 442-km high voltage transmission line with a capacity of 300 MW. By 2020, it will need 3000MW of power to meets its own demand. It intends to harness wind energy and hopes to export the same in near future. However, its political tension with Pakistan come in the way of interconnection with that country.
Bangladesh
Bangladesh produces energy using natural gas, imported oil, coal, hydro and solar energy. It has already exhausted most of its deposits of natural gas; and no new discovery has been made since long. It has good coal deposits but they are deep underground and the country does not have economically viable way to dig that out. It has already utilized its almost full hydro potential. The Bangladesh government is building large power plants to produce energy from imported coal, LNG and also nuclear energy. In some parts, solar energy is also produced for household use. The installed capacity of Bangladesh is 10800MW, which is not able to meet the peak demand. To meet the shortfall, it purchases electricity from small oil based plants and also imports 500MW from India. It also hope to import energy from Nepal and Bhutan.
Bhutan
Bhutan has neither petroleum nor natural gas reserves. But it has a hydro power potential of 30000 MW; and huge coal reserves which remain untapped. India and Bhutan are collaborating on several hydro projects. India is investing lots of funds in Bhutan’s hydropower and expects to import 10000MW of that power by 2020.
India
India has 90,000 million tonnes of coal reserves and huge hydro potential. It imports natural gas from middle east and expects to import the same in future via pipelines from Central Asia, Middle East and Myanmar. At present, it is world’s third largest producer of electricity and has installed capacity of 258000MW. It has already connected northern and southern power grids and plans to interconnect southern grid with Sri Lanka via a submarine cable. It is also investing huge amount in Nepal and Bhutan to harness their hydro power. Further, government trying to boost solar, wind and other forms of unconventional power.
Maldives
Maldives is smallest SAARC member and meets its energy requirements by imported fuel. Its geographical location makes it impossible to interconnect with any country in near future.
Pakistan
Pakistan has good deposits of natural gas and coal and also substantial hydro power. However, it struggles with power shortage, long load shedding hours etc.
Nepal
Though Nepal has huge hydropower generation potential {around 42000MW}, yet it is struggling with acute power shortage and has been importing the same from India for many years. If hydro power potential of Nepal is realized, it can be a net exporter of energy, but there are several obstacles in that direction.
Sri Lanka
Sri Lanka has no coal or natural gas but has small oil reserve. It has 2000MW hydropower potential creates 48% power of this capacity. Rest demand is met by energy production from oil, naphtha and coal. It also has nuclear energy dreams and a proposal of interconnection with India.
Analysis
The concept of a SAARC power grid had been in the minds of policy planners for many years but so far the progress is very slow. There are two main reasons for the same. First, it is obviously the lack of political will due to occasional conflicts and mistrust among SAARC members. Second and more important, almost all SAARC countries are power deficient as we studied above. How an interconnected power grid may work when all SAARC countries are power deficient? The policy makers are actually relying on tapping the untapped potential to realize such a grid. The idea is that if there is enough power generation, one region / country can fulfil demand of other country and prerequisite for that is a seamless SAARC power grid within the next few years. Secondly, SAARC countries are located in different time zones and peak demand in each of them occurs at different point of time. Thus, the seamless connectivity can also address issue of load shedding. Thirdly, Nepal has its annual peak {demand} in winter while India and other countries have the same in summer. If Nepal produces enough power, it can supply its surplus power to India and can import surplus power from India in winter.
