Regional Cooperation, key to ensure South Asia energy security

New Delhi, Nov 26, IRNA – Regional cooperation is key to ensure South Asia energy security, said Sudhir Vyas, Secretary (ER), Ministry of External Affairs. “With India looking at increasing power availability by 800,000 GW by 2030 to sustain GDP growth rates of 8-9 percent, the country’s demand for energy will drive the formation of the SAARC energy grid” Vyas said while releasing a report on “South Asia Energy Cooperation and Business Opportunities in the Power Sector” published by the Confederation of Indian Industry (CII) at the Round Table Session focusing on the same subject. He further stated that while initial steps have been taken, much more needs to be done to expedite regional cooperation in this space. “A lot is being done at the bilateral level but this needs to be scaled up to the regional level” he said. Focusing on the policy issues that need to be addressed for energy security through regional cooperation, Kirit Parikh, Chairman, IRADe emphasized that a competitive electricity sector with independent regulators is imperative to meet the goals of power to all and poverty alleviation. “There is clearly a strong argument for energy cooperation given the advantages of lower costs, more effective utilization of resources and an increase in capacity factor. Sudhir Kapur, Member CII National Committee on Power and Chairman and Managing Director, Country Strategy Business Consultant Pvt Ltd, in the course of his welcome remarks stated that given the growth potential in the entire south Asian region, an almost four fold increase in energy demand and also supply is expected. “Currently, thermal plants account for the bulk of the power supply in these regions at 65 per cent followed by hydro power at 20 per cent. Given the twin objectives of ensuring energy security and addressing the climate change challenge, it is important to capitalize on the over 200 GW of hydro potential in countries including India , Bhutan and Nepal. A comprehensive approach comprising an integrated policy, and integration of the grids as well as substantial investments has the potential to be a game changer in providing the countries in this region with uniform access to power,” he said. Highlighting the benefits of cross border trading Jayant Deo, Member CII National Committee on Power and Managing Director, Power Trading Corporation Ltd, said, “With key advantages including the creation of transparent & neutral platforms; savings on operating costs, utilization of cheaper generation; optimal use of resources and enhanced efficiency and reliability of power supply, cooperation among countries in the energy space is increasing globally. In India , as well, to facilitate the development of cross border power exchanges, it is important to develop mechanisms for deviation settlement, payment security and clearing and settlement. This will pave the way for a single South Asia electricity market. Assessing the business opportunities in this segment, Amulya Charan, Chief Mentor, Tata Power Company Ltd stated, “All our neighboring countries including Nepal, Bhutan, Pakistan and Sri Lanka either have the demand or the supply resources which are unfulfilled and therefore setting up a SAARC grid has huge potential. For instance, Nepal and Bhutan have adequate hydro power resources which if harnessed effectively can provide these countries with adequate national income. This has already been happening very effectively in Bhutan where hydro power exports account for a substantial portion of the country’s GDP.” Citing the example of Europe, he said, “The multiple nation grid is a well established phenomenon and needs to be replicated in South Asia. This will lead to a win-win situation for all the countries in this region./end