1. DEVELOPMENT OF SOUTH ASIAN GRID

2. WHY SOUTH ASIAN GRID ? Optimal Utilization of Natural Resources Opportunity of Energy Trading Economy of Scale Advantage of Peak diversity Minimization of Environmental Damages

3. SOUTH ASIAN COUNTRIES : COMMON FEATURES Abundant reserves of Natural resources Low per capita electricity consumption Deficit of Power & Fast Growth in Demand Common frequency of operation Similar voltage class

4. SOUTH ASIAN COUNTRIES : ENERGY RESOURCES Bangladesh – Dominated by natural gas India – Dominated by Coal Bhutan – High dependence on hydro Nepal – High dependence on hydro Pakistan – Largely petroleum and natural gas Sri Lanka – Dependence on petroleum

5. SOUTH ASIAN COUNTRIES:EXPLOITATION OF RESOURCES In order to capture the benefit of resource sharing, as experienced all over the world, SARC Countries should also move forward collectively and explore the various possibilities. Large scale trading of coal and natural gas is limited due to constraints in its handling & transportation. Hydel energy can be traded through transmission network only. Therefore for bulk exchange of energy building up of a strong transmission network is the need of the day.

6. FEASIBILITY OF INTERCONNECTION India is centrally placed sharing boundaries with SAARC Countries. Vast Interconnected transmission network. Development of Strong National Grid on the Anvil.

7. INITIATIVE FROM INDIA TOWARDS SOUTH ASIAN GRID

8. INITIATIVES FROM INDIA Initiatives/Control for Power exchanges at governmental level. Encouragement for setting up of new projects on sharing basis to harness natural resources. Continued exchange of energy based on bilateral agreements.

9. ONGOING POWER EXCHANGE : INDIA AND NEPAL Over 16 links at 132/33/11 kV level. About 50 MW of power being exchanged. Net export from INDIA to NEPAL is around 10% of total demand of Nepal. Supply of free power from Tanakpur (India) to Nepal – 70MU/annum.

10. ONGOING POWER EXCHANGE : INDIA AND BHUTAN Interconnections with Chukha HEP through 220 kV Chukha-Birpara 3 ckts and all surplus power from Chukha is exported to India. Presently, this constitutes 75% to 80% of total power generated at Chukha.(1400MU/year) Earning to Bhutan - Rs. 140 crores/Annum. Part of this power re-exported to Bhutan to meet radial loads closer to Indian border. Kurichu HEP (4x15 MW) of Bhutan is also connected to Indian Grid (Salakati) at 132 kV.

11. SOUTH ASIAN GRID THE FUTURE PROSPECTS

12. South Asian Grid - India and Nepal Nepal expected to be surplus in power by 2002 3 nos. 132kV lines under construction between India & Nepal  Butwal(Nepal) – Anandnagar(India)  Birgunj(Nepal) – Motihari(India)  Dalkebar(Nepal) – Sitamarhi(India) Large potential projects being considered for development and export of power to India  West Seti HEP 750 MW  Arun HEP 685 MW  Pancheshwar HEP6,500 MW EHV links planned for evacuation of power to India  West Seti – Bareilly – Muradnagar 400 kV line  Arun HEP – Muzaffarpur 400 kV line  400/765kV lines from Pancheshwar HEP to India

13. South Asian Grid - India and Bhutan Interconnection being established at 400kV level from Tala in Bhutan to Delhi in India for evacuation of power from Tala HEP(6x170MW) More hydro projects to come up in Bhutan  Wangchu: 900MW  Bunakha: 180MW  Sankosh: 4060MW Power from these projects also to be imported by India

14. South Asian Gird - India and Bangladesh East Zone of Bangladesh(generation dominated) shares border with the Eastern Region of India  Bangladesh can supply power to Eastern India West Zone of Bangladesh(load dominated) shares border with the North-Eastern Region of India  India can supply power to Western Bangladesh 2 nos. of 220kV links,one at each side, initially envisaged for limited exchange of about 150 MW  Krishnanagar(Eastern India)-Ishurdi(Western Bangladesh)  Shahjibazar(Eastern Bangladesh)-Kumarghat(N-E India)

15. South Asian Gird - India and Bangladesh There are proposals to set up Gas projects by IPPs for selling power to India Scheme evolved for importing 1000 - 1500 MW power from Gas projects in Bangladesh  Establishment of a S/s at Krishna Nagar in West Bengal through LILO of Farakka-Jeerat 400 kV D/c line  Gen. station - Ishurdi (Bangladesh) 400 kV 2xD/c  Ishurdi - Krishna Nagar (India) 400 kV 3 ckt.  Krishna Nagar - Jamshedpur 400 kV D/c  Jamshedpur - Rourkela 400 kV D/c

16. South Asian Grid – India and Myanmar Govt. of Myanmar had proposed to develop Tamanthi HEP (12x100MW) across the river Chindwin About 700 to 800 MW power from this project might be transferred to India Myanmar shares boundary with North-Eastern Region of India 400kV links proposed for evacuation of power into India  Tamanthi – Badarpur – Misa – Siliguri line

17. South Asian Grid – India and Sri Lanka Proposal for interconnection of Sri Lanka with Southern Regional Grid of India under discussion Usage of HVDC bipole or HVDC back-to-back in conjunction with AC lines suggested

18. SOUTH ASIAN GRID THE ISSUES TO BE ADDRESSED

19. Issues to be addressed : Techincal Firming –up the availability of power i.e.. Quantum of power available for exchange Periodicity of availability/Allocation of firm power  Identification of Reliability criteria.  Establishing the feasibility of interconnection.  Choice of interconnection and technology, considering – Right of way, Cost, Equipment availability etc.

20. Issues to be addressed : Operation of Interconnection Operating Code  Establishment of Operating Code by the participating countries Commercial arrangements  Pricing of power  Payment Security Mechanism  Terms for Indemnification  Sharing of International Experience for Bulk Power Exchange

21. Issue to be addressed : Legal Legal arrangements  Firming up of procedures for dispute settlement and Arbitration  Applicability of Laws of Respective countries/ International Laws Institutional Arrangement  Identification/ Creation of Common Agency to regulate, Administer and Operationalize the Interconnection on long term basis  Establishment of Co-ordination Centres to Govern the Operational matters on Daily and Short Term basis

22. Issues to be addressed : Financial possibilities of funding arrangement Multilateral Funding Private Investment In either case following aspects are to be considered: Sale/ Purchase of Power on a sustained/ long term basis Security of Payment / Signing of Covenant Immunity to Political Changes and changes in Law