STATUS OF CROSS BORDER TRADE AND ENERGY MARKET NEPAL-INDIA EXCHANGE

Transcription

1 STATUS OF CROSS BORDER TRADE AND ENERGY MARKET NEPAL-INDIA EXCHANGE South Asia Regional Workshop on Policies and Regulations to Increase Cross Border Energy Trade ( February 15-17,2012; New Delhi) RAM CHANDRA PANDEY GENERAL MANAGER GRID DEVELOPMENT NEPAL ELECTRICITY AUTHORITY

2 CURRENT TRADING ARRANGEMENT Nepal is a net importer of Electricity. Nepal receives power in three modes: 1. Under River Treaty- Koshi, Gandak and Mahakali River treaty 2. Contiguous Border Town Exchange Program -Based on radial system at different points at 11 kv and 33 kv. -Nepal also supplies to India at some points 1. Commercial Trading Arrangement- for short term-driest season- PPA with PTC India Current level of import is around 120 MW

3 What is happening between two countries is merely a power exchange not the commercial power trade

4 STATUS OF EXISTING AND PLANNED CROSS BORDER INTER CONNECTION PROJECTS EXISTING LINKS There are three 132 kv level links between India and Nepal: Duhabi-Kataiya, Gandak-Ram nagar,and Mahendra Nagar-Tanakpur 14 nos of 33 kv interconnections along the contiguous border towns- most of the links are old and dilapidated-needs rehabilitations All of the above links operate in radial mode:

5 Existing Transmission links are inadequate to support the higher quantum of Power Exchange/Power trade PLANNED CROSS BORDER INTERCONNECTION The first high capacity 400 kv Double Circuit TL from Dhalkebar( Nepal) to Mujaffarpur(India) is going to be realized under commercial mode- advanced phase of Development The commissioning date is expected on mid 2014.

6 PLANNED CROSS BORDER INTER CONNECTION PROJECTS Given the 800 km East-West border many interconnections can be possible The second high capacity Cross Border link has been identified as Moolpani-Naubise-Hetauda-Ballia 400 kv link- project preparation started. Many others interconnections at 400 kv have been proposed e.g Duhabi-Purnea, Butwal-Anada Nagar, Anarmani-Silguri Besides, Many export oriented mega projects will have their own transmission system

7 SUPPLY DEMAND AND TRANSMISSION CONSTRAINTS Energy Source and consumption pattern Energy Source Scenario Energy Consumption distribution Traditional: 87.5 % Residential: 90% Commercial: 12 % Industrial: 3.5% Electricity: 2 % Commercial: 1.5% Fossil fuel: 10 % Transport: 3.8% Alternative: 0.5 % Others: 1.2%

8 ELECTRICTY SUPPLY SITUATION Installed Capacity: 705 MW Hydro: 652 MW Thermal: 53 MW Out of Installed Hydro 92 MW is storage and rest is ROR IPP contributes around 174 MW and rest is NEA s Generation

9 ELECTRICITY DEMAND OF NEPAL Year 2009/1 0 10/11 11/12 12/1 3 13/14 19/20 Capacity demand (MW) Energy demand/day (dry) MWh Electricity Demand

10 Existing Energy Gap Annual peak demand of INPS MW (2011) Dependable Supply Wet season 600 MW Dry season 350 MW Severe Capacity and Energy Deficit 350 MW firm capacity required for dry season deficit

11 Existing Energy Gap Annual total energy demand 4,833.35GWh Generated energy from available source 3, GWh Yearly energy gap GWh (20.33%)

12 TRANSMISSION CONSTRAINTS The highest interconnection between Nepal and India is at 132 kv Level. Therefore the quantum of Power Exchange/Trading is limited due to Cross Border Transmission Capacity Constraints Also within the Nepal, there is severe transmission constraints- problem in power flow from west to east -Transmission bottleneck Absence of adequate transmission link is one of the reason for the slow development of power generation

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14 Institutional Arrangement Power Exchange Committee(PEC) - constituted in oversees the exchange and other issues -Supposed to meet once a year by rotation in India and Nepal. Joint Committee on Water Resources ( JCWR): -constituted as per agreement of August 3, 2000 during the visit of the then prime minister G.P Koirala. - Headed by secretaries of ministries of both the country. - Supposed to meet every six months

15 Institutional Arrangement NEA exhibits short term trading with PTC India during the dry months There are no Power trading companies and energy exchange market at all in Nepal- NEA is doing all functions In current fiscal year budget speech, Government of Nepal has announced to establish Power trading Company in Nepal-yet to be materialized

16 Legal and Regulatory framework There is no umbrella Agreement for commercial Cross Border Power Trade between Nepal and India. Cross border Power trade can not foster in absence of broader umbrella Agreement between Governments level Having G-G Agreement minimizes political risk in developing transmission interconnections Internally Electricity Act of Nepal 1992 and Hydropower Act 1992 guides all the power sector of Nepal including Cross Border Power Trade

17 Legal framework Draft of new Electricity Act under consideration in parliament- an effort to reform legal and regulatory framework Draft Act to establish the Nepal Electricity Regulatory Commission is under consideration The price of Power to Consumer is under the purview of Electricity Tariff Fixation Regulation 1993

18 Price of Imported Power The price of power under exchange mode is quite cheaper as these are concessional power that Nepal receives from GOI But Rates of Short term Power under commercial mode is quite higher Currently on December 12, 2011 NEA executed Power Sale Agreement with PTC India on long term basis purchase of 150 MW Power

19 Price of Imported Power PTC will provide this power through back to back PPA with generators and settles all the bidding/auction procedures based on NEA dispatch instruction. This Power will be routed through proposed D-M Interconnection between India and Nepal

20 Dhalkebar Muzaffapur Siliguri Birpara Chukha Tala Farakka Baharampur Ishurdi Jeerat Bheramara Khulna

21 ISSUES IN INDIA NEPAL POWER TRADE Existing Interconnection capacity inadequate Inadequacy of existing legal and regulatory system for enhancing power trade. Absence of G to G umbrella agreement in cross border power trade which governs all the policy aspects of trade including market access Tariff to be based on commercial principles. Transparency in sharing information Cost of delivered power to be competitive Invisibility of generator supplying power in the contract

22 ISSUES IN INDIA NEPAL POWER TRADE OPERATIONAL ISSUES: Synchronization between two systems, Loop flows Grid code Security standards and operational protocols adequacy of load dispatch and communication facilities to handle the commercial trade of power,internal strengthening of TL system to enable cross border power evacuation

23 THANK YOU FOR YOUR KIND ATTENTION