Preparing the Energy Sector Dialogue and South Asia Association for Regional Cooperation Energy Centre and Capacity Development Project

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Preparing the Energy Sector Dialogue and South Asia Association for Regional Cooperation Energy Centre and Capacity Development Project Consultant’s Final Report Project No. 41125 Final Report March 2010 RETA 6368: Preparing the Energy Sector Dialogue and South Asia Association For Regional Cooperation Energy Centre and Capacity Development Project Prepared by Mr. D. N. Raina The Consultant’s final report is a document of a team of consultants led by Mr D N Raina. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. SAARC Regional Energy Trade Study (SRETS) SAARC Secretariat Kathmandu, Nepal March 2, 2010 2 SAARC Regional Energy Trade Study (SRETS) Acknowledgment The SAARC Regional Energy Trade Study (SRETS) report has been prepared by a team of experts from South Asia headed by Dr. Leena Srivatava. It has been synthesized from the eight country reports prepared by the National Consultants from Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. The names of the authors of country reports are given below: • Mr. Ghulam Mohd Malikyar, Afghanistan • Mr. M. Jamaluddin, Bangladesh • Mr. Kul Bahadur Wakhley, Bhutan • Mr. Yoginder Raj Mehta, India • Mr. Rakesh Kumar, India • Mr. Abdullah Wahid, Maldives • Dr. Rabin Shrestha, Nepal • Mr. Tanweer Hussain, Pakistan • Prof. Priyantha Wijayatunga, Sri Lanka Dr. PN Fernando and Mr. Durga Raina provided extensive inputs and valuable comments while reviewing the country reports, the regional report and incorporating the responses to the comments of the SAARC Member States while finalizing the SRETS Report. Ms. Ruchika Chawla and Ms. Garima Jain extended assistance to Dr. Srivastava in drafting the regional report. Officials, individuals and organizations of the SAARC Member States provided their support in different forms in carrying out this study. Their critique, as well as endorsement, assisted in better articulation of the regional energy trade initiatives presented in this report. South Asia Energy Division of the Asian Development Bank (ADB) extended the required financial and coordination support for undertaking and successful completion of this study. SAARC Energy Centre led by Dr Hilal Raza provided extremely useful feedback and direction at various stages of the study. The overall coordination on behalf of the SAARC Secretariat was carried out by Energy, Tourism and Science Division headed by Mr Ghulam Dastgir, Director Pakistan. SAARC Secretariat gratefully acknowledges the support extended by all these individuals and institutions for their respective inputs in finalising the SRETS report. August 2009 3 SAARC Regional Energy Trade Study (SRETS) List of Abbreviations ADB Asian Development Bank AEPC Alternative Energy Promotion Centre AFRA Average Freight Rate Assessment AFREC Africa Energy Commission AISA Afghanistan Investment Support Agency ANDS Afghanistan National Development Strategy ANSA Afghan National Standardization Authority APP Asia Pacific Partnership APM Administered Pricing Mechanism APPA Africa Petroleum Producers Association AU Africa Union BCM Billion Cubic Meter BERC Bangladesh Energy Regulatory Commission BEA Bhutan Electricity Authority BGFCL Bangladesh Gas Fields Company Limited BOGMC Bangladesh Oil, Gas and Mineral Corporation BPC Bhutan Power Corporation Limited BPDB Bangladesh Power Development Board CAGR Compounded Annual Growth Rate CATS Customers Access Terminal System CDM Clean Development Mechanism CEA Central Electricity Authority CEB Ceylon Electricity Board CERC Central Electricity Regulatory Commission CIL Coal India Ltd CNG Compressed Natural Gas CPC Ceylon Petroleum Corporation CPGS Central Power Generating Stations DAE Department of Atomic Energy DGH Directorate General of Hydrocarbon DGPC Druk Green Power Corporation Limited DHI Druk Holdings and Investments Limited DOED Department of Electricity Development DRC Democratic Republic of Congo DRED Department of Renewable Energy Development EAC Energy Advisory Committee ECA Economic Commission of Africa ECT Energy Charter Treaty EI Energy Intensity 4 SAARC Regional Energy Trade Study (SRETS) EMRD Energy & Mineral Resources Division EPF Electric Power Forum E&P Exploration and Production F.O.B Free On Board GoI Government of India GoN Government of Nepal GDP Gross Domestic Product GMS Greater Mekong Sub-Region GTCL Gas Transmission Company Limited GWh Giga Watt Hour HCU Hydrocarbon Unit HDI Human Development Index HSD High Speed Diesel ICE Inter-Ministerial Commission for Energy IDCOL Infrastructure Development Company Limited IOCs International Oil Companies IEA International Energy Agency IEX India Energy Exchange IGA Inter Governmental Agreement IPI Pipeline Iran-Pakistan- India Pipeline IPP Independent Power Producers IREDA Indian Renewable Energy Development Agency ITC Independent Transmission Companies KESC Karachi Electric Supply Corporation LDC Load Dispatch Centre LECO Lanka Electricity Company LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas MEA Maldives Energy Authority MEW Ministry of Energy and Water MMSCFD Standard Million Cubic Feet Per Day MMTPA Million Tonnes Per Annum MoEST Ministry of Environment, Science and Technology MoICS Ministry of Industry, Commerce and Supplies MoP Ministry of Power MoPEMR The Ministry of Power, Energy and Mineral Resources MoP&NR Ministry of Petroleum & Natural Resources MoF Ministry of Finance MoFA Ministry of Foreign Affairs MoFT Ministry of Finance and Treasury MoPNG Ministry of Petroleum & Natural Gas MoU Memorandum of Understanding MoWR Ministry of Water and Resources MoW&P Ministry of Water & Power 5 SAARC Regional Energy Trade Study (SRETS) MMT Million tonnes MNRE Ministry of New and Renewable Energy MTOE Million tonnes of oil equivalent MW Megawatt MWh Megawatt Hour NCL Nepal Coal Limited NEA Nepal Electricity Authority NEP National Energy Policy NELP New Exploration Licensing Policy NEEPCO North Eastern Electric Power Corporation NLDCs National Load Dispatch Centres NOC Nepal Oil Corporation NGO Non-Governmental Organization NHPC National Hydro Electric Power Corporation NPCIL Nuclear Power Corporation of India Limited NSP National Solidarity Program NTDC National Transmission and Dispatch Company NTPC National Thermal Power Corporation OGDCL Oil and Gas Development Company Limited OGRA Oil and Gas Regulatory Authority PAEC Pakistan Atomic Energy Commission PEEREA Protocol on Energy Efficiency and Related Environmental Aspects PEPCO Pakistan Electric Power Company PEPP Petroleum Exploration Promotion Project PNGRB Petroleum and Natural Gas Regulatory Board PGCIL Power Grid Corporation of India Limited POL Petroleum and Oil Product PFC Power Finance Corporation PSUs Public Sector Undertaking PTC Power Trading Corporation Ltd. PPIB Private Power Infrastructure Board PPP Purchasing Power Parity PRR Priority Reform and Reconstruction Program PSCs Production Sharing Contracts PSO Pakistan State Oil PUCSL Public Utilities Commission of Sri Lanka R/P ratio Reserves-to-Production Ratio REC Rural Electrification Corporation RECs Regional Economic Communities RERA Regional Electricity Regulatory Association RETA Regional Technical Assistance RETs Renewable Energy Technologies RGoB Royal Government of Bhutan 6 SAARC Regional Energy Trade Study (SRETS) RIPA Regional Integrated Programme of Action RPTCC Regional Power Trading Coordination Committee SAARC South Asian Association for Regional Cooperation SADC Southern African Development Community SADF South Asian Development Fund SAPP Southern African Power Pool SC Single Circuit SDF SAARC Development Fund SEBs State Electricity Boards SEC SAARC Energy Centre SERCs State Electricity Regulatory Commissions SFRPS SAARC Fund for Regional Projects SGFL Sylhet Gas Fields Limited SHS Solar Home Systems SMS SAARC Member States SRETF SAARC Renewable Energy Task Force SRETS SAARC Regional Energy Trade Study SRF SAARC Regional Fund SCA Sindh Coal Authority SNGPL Sui Northern Gas Pipe Line Company Limited SSGCL Sui Southern Gas Company Limited STEM Short Term Energy Market STELCO State Electric Company Ltd STO State Trading Organization T&D Transmission and Distribution TAPI Pipeline Turkmenistan – Afghanistan – Pakistan - India Pipeline TCF Trillion Cubic Feet TERI The Energy and Resources Institute ToR Terms of Reference TSO Transmission System Operator UNDP United Nations Development Programme UMPP Ultra Mega Power Projects USA Unites States of America USD United States Dollars WEC World Energy Council WTO World Trade Organization 7 SAARC Regional Energy Trade Study (SRETS) Energy Conversion Factors Basic Energy Units 1 joule (J) = 0.2388 cal 1 calorie (cal) = 4.1868 J (1 British thermal unit [Btu] = 1.055 kJ = 0.252 kcal) WEC Standard Energy Units 1 tonne of oil equivalent (toe) = 42 GJ (net calorific value) = 10 034 Mcal 1 tonne of coal equivalent (tce) = 29.3 GJ (net calorific value) = 7 000 Mcal Note: the tonne of oil equivalent currently employed by the International Energy Agency and the United Nations Statistics Division is defined as 107 kilocalories, net calorific value (equivalent to 41.868 GJ). Volumetric Equivalents 1 barrel = 42 US gallons = approximately 159 litres 1 cubic metre = 35.315 cubic feet = 6.2898 barrels Electricity 1 kWh of electricity output = 3.6 MJ = approx. 860 kcal Representative Average Conversion Factors 1 tonne of crude oil = approx. 7.3 barrels 1 tonne of natural gas liquids = 45 GJ (net calorific value) 1 000 standard cubic metres of natural gas = 36 GJ (net calorific value) 1 tonne of uranium (light-water reactors,
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