CROSS-BORDER ENERGY TRADE IN SOUTH ASIA

MANJU GUPTA POWER GRID CORPORATION OF INDIA LTD.

INDIA

1

USAID/SARI-E SOUTH ASIA REGIONAL WORKSHOP ON TRANSMISSION OPERATIONS FOR CROSS BORDER ENERGY TRADE

THIMPHU, BHUTAN AUGUST 28-30, 2012

Common Features of South Asia Countries

• Abundant reserves of Natural resources

• Low per capita electricity consumption

• Fast Growth in Demand & deficit of Power in most of the countries

• Common frequency of operation

• Similar voltage class

2

• Improving Reliability and pooling reserves

• Improving load factor and increasing load diversity

• Economies of scale in new construction

• Diversity of generation mix and supply security

• Economic exchange

• Thermal resources – cheaper to transport in electricity form; Hydro

resources – can only be transported in electricity form

• Exporting countries benefitted economically, Importing countries

benefited by deferring investment towards setting up power plants

• Evolving Open Electricity market

• Countries with limited resources would be benefited

3

Benefits of Interconnection

4

India Bangladesh

SAARC Countries

Nepal Bhutan Pakistan

Afganistan

5

Interconnection of India

with Bangladesh

6

Interconnection between India & Bangladesh Grids

• Purpose : –Exchange of Power between

India and Bangladesh

• Interconnection : – Baharampur(India)-

Bheramara(Bangladesh) 400kV D/c

line

–500MW HVDC B/b stn at

Bheramara(Bangladesh)

• Type of connection : –Asynchronous(HVDC)

• Transfer Capacity : – 500MW (upgradable to

1000MW)

GOALPARA33.2 MVA

KHULNADOMJUR

LILUAH

HOWRAH(WB)

JOKA

BUDGEBUDGE

SOUTHERN

BARIPADA

HALDIATAMLUK

FALTA

KOLAGHAT

KRG'PUR(D)

ULUBERIA

KOLAGHAT(D) HWH(D)

HM

LEGEND

BHOLAGALLAMARI

LAKSHMIKANTOPUR

SUBHASGRAM

BASIRHATSONARPUR

KASBA

MANGLA13.3 MVA

SOUTH

SATKHIRA

BHANDARIA13.3 MVA

26.6 MVABAGERHAT

KAWKHALI

PATUAKHALI40 MVA

BARISAL82 MVA

230/220kV

EXISTING

132kV

FUTURE

BANDARBAN

20 MVA

COX'S BAZAR

RAUJAN

JULDAH

SHAHMIRPUR

126 MVA

Bay of Bengal

HALISHAHAR167 MVA

BURHANUDDIN

63 MVA

82 MVA

HATHAZARI

BAROAULIA

KULSISIKALBAHA

80 MVA

41 MVA

DOHAZARI

CHANDROGHONA26.6 MVAMADANHAT

82 MVA

KAPTAI

LUNGSEN

TENGA

NBU

LDTEESTA

RAIGANJ

GANGARAMPUR

DALKHOLA(WBSEB)

CH. NAWABGANJ40 MVA

SAGARDIGHI

RAGHUNATHGANJ

DEBAGRAM

KRNAGAR

RANAGHAT

TITAGARH

DPL

ARAMBAG

ARAMBAGBURDWAN

RISHRA

BELMURI

KHANYAN

BTPS

DURGAPUR

NAGARBIDHAN

MANKAR

BOLPUR

SATGACHIA

KATWA

DHULIAN

RAMPURHAT

BAKRESHWARSAITHIA

GOKARNA

FARRAKA

KHEJURIA

PURNEA

KAHALGAON

MALDA

SAMSI

DALKHOLA

KATIHAR

PURNEA(BSEB)(WBSEB)DALKHOLA

LEBONG

RAMMAM

JOYDEVPUR

GHORASAL

ASHUGANJ

MEGHNAGHATMAGURA

40 MVA

KHULNA CENTRAL192 MVA

NOAPARA

BONGAON

JEERAT

ASHOKNAGAR

DHRMPR

BARASAT

KALYANI JESSORE80 MVA

CHUADANGA

JHENAIDA40 MVA

BOTTAIL82 MVA

MADARIPUR26.6 MVA

GOPALGANJCHANDPUR

40 MVA

AMINBAZAR

FARIDPUR40 MVA

MANIKGANJ41 MVA

HASNABAD

MIRPUR

KALYANPUR

TONGI

ULLON

BASUNDHARA

BOGRA82 MVA

40 MVA

SHAHJAD

SIRAJGANJ

PUR40 MVA

BHERAMARA16.6 MVA

ISHURDIBEHRAMPUR

BEHRAMPUR

53 MVARAJSHAHI

82 MVAPABNA

NATORE40MVA

NIAMATPUR NAOGAON82 MVA

BOGRASOUTH

SRIPUR(MODHUPUR)

TANGAIL82 MVA

BAGHABARI

KABIRPUR82 MVA

68 MVA

JAMALPUR82 MVA

82 MVAMYMENSINGH

JIRIBAMKOLASIB100 MVAKHOWAI

TRIPURA

CHOWMOHANI

82 MVA

COMILLA

82 MVASOUTH

FENI40 MVA

40 MVA

COMILLANORTH

AGARTALAHARIPUR

SIDDHIRGANJ

RAMPURAGPP

AGARTALA

AMBASSA

W.PHAILENG

RANGAMATI

KHAGRACHARI

LUNGLEI

MARPARA

SERCHIP

(ZEMABAWK)

MIZORAM

AIZWAL

AIZWAL

EASTKANCHANBARI

KISHORGANJ

20 MVASHAHJIBAZAR

50 MVA

B. BARIA

B BARIA

40 MVA

KAMALPUR

SREEMONGAL

40 MVA

NETROKONA40 MVA

SYLHET

DULLABCHERA

KAILASHAHAR

KUMARGHAT

DHARMNAGAR

BADARPUR

PANCHGRAM

FENCHUGANJ

33 MVA

SYLHET40 MVA

JIRIBAM

PILAPOOL

BONGAIGAON

ASSAM

BORNAGAR

40 MVA

LALMONIRHAT

PALASHBARI

JOYPURHAT

BALURGHAT40 MVA

82 MVASAIDPUR

33.4 MVA

BOROPUKURIA

PURBASADIPUR

(2x41+1x20) MVATHAKURGAON

RANGPUR82 MVA

TURA

ALIPURDUAR

SILIGURI

MOINAGURI

PANCHAGARH

BIRPARA

MELLI

BIRPARA(WB)

GOSAIGAON

DHALIGAON

AGIA

SALAKATI

SINGIGAON

CHUKHA

GUWAHATI

NEHU

KYRDEMKULAIUMIAM-4

MEGHALAYANANGAL

BIBRA

40 MVACHATTAK

CHERRAPUNJI

SHILLONG

LONGPI

UMTRU

UMIAM

CHANDRAPUR

KHLIEHRIAT

KHLIEHRIAT

KHANDONG

HAFLONG

KOPILI

BYRNIHAT

JAGIROAD

UMRANGSO

NECHIPHU

RANGIA

AMINGAON

ROWTA TEJPUR

SAMAGURI

MARIANI

BALIPARA GOHPUR

POWER MAP OF BANGLADESH AND INDIA

GANGTOK

RANJIT

TEESTA-VTALA

LHAO

KAMENGKHUPI

SURYAMANINAGAR

SILCHAR

400kV at 132kV

PALLATANA

AZARA

7

India & Bangladesh Interconnection

• MOM signed between Indian Delegation and BPDB & PGCB officials, Bangladesh on November 24, 2009 at Dhaka.

• Executing Agency :

– Indian portion : POWERGRID, India

– Bangladesh portion : PGCB (Power Grid Company of Bangladesh Ltd.), Bangladesh.

• Cost Estimate :

– India Portion : Rs. 169.86 Crore (USD 37.75 million)

– Bangladesh Portion : Rs. 736.84 Crore (USD 163.75 million)

• Commissioning Schedule : July, 2013

8

BOGRASOUTH

BHERAMARA

NAOGAON

NIAMATPUR

FARRAKA

SUBHASGRAM

KATWA

GOKARNA

JEERAT

KHULNA(SOUTH)

BOTTAIL

BAHARAMPUR

CH. NAWABGANJ

RAGHUNATHGANJ

KA

HA

LG

AO

N

SAGARDIGHI

RAJSHAHI

BAHARAMPUR

ISHURDI

NATORE

KHEJURIA

FARIDPUR

BAGHABARI

GHORASAL

MA

DH

OP

UR

SHAHJAD

PABNAPUR

SIRAJGANJ

BOGRA

INTERCONNECTION BETWEEN INDIA AND BANGLADESH GRIDS

400 kV230 kV132 kV

THE PROJECT

LEGEND

BAKRESHWAR

KOLAGHAT

BANGLADESH

INDIA

400kV D/c

(400 KV)

MALDA

DHULIAN

DURGAPUR

Existing

Under Constr. / Future

JAYPURHAT BARAPUKURIA

9

India & Bangladesh Future Interconnection

• In the 4th Joint Steering Committee Meeting held in Delhi on 28th

February 2012, possibility of import of power from Tripura and

interconnection between the eastern and western sides of

Bangladesh was discussed.

• It was agreed that a Joint Technical Team (JTT) may be set up to look

into the feasibility of power exchange through eastern side of

Bangladesh border.

• The following TOR for the JTT was agreed:

To explore the opportunity of power exchange between eastern

side of Bangladesh and India.

To recommend associated transmission system on both sides of

the border and its integration required for facilitating such power

exchange.

10

Interconnection of India

with Bhutan

India - Bhutan : Existing Interconnections

For import of power from following Projects • Chukha HEP (4x84 = 336 MW)

– Chukha – Birpara 220kV 3 ckts

• Kurichu HEP (4x15 = 60 MW)

– Kuruchu - Geylegphug(Bhutan) – Salakati(NER) 132 kV S/c

• Tala HEP (6x170 MW = 1020 MW)

– Tala – Siliguri 400kV 2x D/c line

11

India - Bhutan : On Going Trans. System

Tr. System for Punatsangchu-I (1200 MW)

• Interconnection (Bhutan Portion) : Punatsangchu-I HEP – Lhamoizingkha

(Bhutan Border) 400 kV 2xD/c line with twin moose Conductor.

• Interconnection (Indian Portion) : Lhamoizingkha (Bhutan Border) –

Alipurduar 400kV D/c (Quad)

• Other Major Transmission System in India

– New + 800kV, 3000MW HVDC pooling station at Alipurduar.

– Extn. of + 800kV, 3000MW HVDC station at Agra

– LILO of Bishwanath Chariali – Agra 800kV, 6000MW HVDC line at Alipurduar

– LILO of Bongaigaon – Siliguri 400kV D/c line(quad) at Alipurduar

– LILO of Tala-Siliguri 400kV D/c line at Alipurduar.

Estimated Cost (Indian Part) : Rs. 4400Cr. (USD 978 million) 12

India - Bhutan : Future Scenario • Identified Hydro Potential : About 24000 MW

• Major Hydro power addition – By 2020 : 10300 MW (from 14 HEP)

– By 2030 : 22280 MW (from 71 HEPs)

• Major Projects by 2020

13

Sl No Project Capacity Commissioning

1 Punatsangchu-I 1200 2015

2 Punatsangchu-II 1020 2017

3 Sunkosh 2500 2020

4 Wangchu 570 2019

5 Bunakha 180 2020

6 Amochhu 540 2018

7 Dagachhu 126 2015

8 Mangdechhu 720 2017

9 Nikachhu 210 2020

10 ChamKharchu-I 770 2018

11 Kuri-Gongri 1800 2020

12 Kholongchu 600 2018

India – Bhutan : Transmission system from future Projects

• Major portion of power from the future generation projects in

Bhutan is envisaged to be imported into Indian grid.

• 4 no of high capacity 6000MW HVDC corridors to various regions of

India required

• The 1st of the 3000MW HVDC terminal being established at

Alipurduar along with 6000MW NER-NR/WR interconnector) – Would take care of evacuation from projects like Punatsangchu-I(1200MW),

Punatsangchu-II(1020 MW) & Mangdechu(720MW)

– To be commissioned in 2014-15.

14

India – Bhutan Interconnection

15

Interconnection of India

with Nepal

16

India - Nepal : Present Interconnection

Power Scenario in Nepal

Installed Capacity : 617MW (Hydro – 91%)

Demand : 600 MW

Peak Deficit : 100 MW (250MW likely by 2014-15)

Interconnection : 22 links at 132/33/11 kV

About 50 MW of power being exchanged in radial mode which has recently gone up to about 100MW (increase in power exchange with Bihar) after some short term strengthening work carried out by POWERGRID.

Supply of 70MU/annum from Tanakpur HEP(India) to Nepal (as per the Mahakali Agreement)

Net export to Nepal (about 10% of demand of Nepal met from India)

17

18

India - Nepal : Interconnection

India – Nepal : On–Going Trans. System • Transmission Line

– 400kV inter-connection (initially op. at 220kV level) between Muzaffarpur(India) and Dhalkebar(Nepal) : 125 km

• Indian Portion :

– Line length : 86.43km; Estimated cost : Rs. 131.75 Crs. (USD 29.28million)

– To be implemented by Cross Border Power Transmission Company Pvt. Ltd. (CPTC)

[Proposed equity shares of JV partners : IL&FS(38%), POWERGRID (26%), SJVNL

(26%) and NEA (10% )]

• Nepalese Portion :

– Line length : 39km ; Estimated cost : Rs. 127.54 Crs. (USD 28.34million)

– To be implemented by Power Transmission Company Nepal Ltd. (PTCN)

[Proposed equity shares of JV partners : NEA(50%), POWERGRID (26%), Financial

Institutions of Nepal (14%), IL&FS (10%)] 19

India – Nepal : On–Going Trans. System

• Status of Implementation

20

Milestone Status

Transmission License Granted for both portions

PSA (Power Sale Agreement) Signed on 12th December,2011 between NEA and PTC for 150 MW

ITSA between JVs & NEA Signed on 13-Dec-2011 between CPTC & NEA and PTC & NEA

Shareholder Agreement (SHA) SHAs for both the JVs signed on 9-Jul- 2012.

India – Nepal : Future • Hydro Potential : about 83,000 MW • Future Hydro Projects :

–Karnali - 10,800 MW (Upper Karnali - 900MW)

–Tamakoshi III - 880 MW

–U. Marsyangdi – 2 - 600 MW

–Pancheshwar HEP - 5,600 MW

–Sapta Koshi - 3,300 MW

–Arun HEP - 1,100 MW

–West Seti HEP - 750 MW

–Lower Marsyangdih - 300 MW

• High capacity transmission interconnection between Nepal and India need

to planned for evacuation and transfer of power from future hydel projects

in Nepal.

21

22

India - Nepal : Future Plan

East-West High capacity transmission Corridor need to be planned in Nepal

This corridor may be connected with hydro projects in Nepal and Load centres in

India

Development may be carried out through SPV

23

Interconnection of India

with Sri Lanka

• Installed Capacity : 2684 MW

(Hydro – 45%, Thermal-55% )

• Maximum Demand : 2200MW

• Demand Growth : 8 %

• Hydro potential : 2000 MW

out of which 1200 MW already

harnessed

EMBILIPITIYA

MATARA

GALLE

DENIYAYA

SAMANALAWEWA

BALANGODA

MATUGAMA

PANADURA

RANTEMBE

RANDENIGALA

VICTORIA

INGINIYAGALA

AMPARA

BOWATENNA

UKUWELA

KIRIBATHKUMBURA

KOTMALE

WIMALASURENDRA

BADULLA

N'ELIYA

MADAMPE

BOLAWATTA

THULHIRIYA

KURUNEGALA

VEYANGODA

BIYAGAMA

ORUWALA

KOLONNAWA

KOTUGODA

RATMALANA PANNIPITIYA

TRINCOMALEE

ANURADHAPURA

PUTTALAM HABARANA

RATMALANA

PANNIPITIYA

ORUWALA

BIYAGAMA

FORT

KOLLUPITIYA

KELANITISSA

KOLONNAWA

S'KANDA

132kV : Underground Cable

132kV Line

220kV Line

POLPITIYA

NEWLAXAPANA

CANYON

KELANIYA

KOTUGODA

SAPUGASKANDA

KELANITISSA

KHD

KOSGAMA

VAVUNIA

POLONNARUWA

HAMBANTOTA

LAKDANAWI

LAXAPANA

SITHAWAKA

220/132 kV Sub Station

132kV GS

Hydro Power Station

Thermal Power Station

NEW ANURADHAPURA

Sri Lanka Transmission System

BARGE PS

CHUNNAKAM

KILINOCHCHI

VALACHCHANAI

132kV Line (not in operation)

24

Sri Lanka : Present Power Scenario

India – Sri Lanka interconnection

25

MoU Signed between GoI & GoSL for feasibility study to be carried out by

POWERGRID and CEB

Executing Agency : POWERGRID (India) & CEB (Sri Lanka)

Proposed Interconnection :

India(Madurai) – Sri Lanka(Anuradhapura) HVDC bipole line : 360 km

(Stage-I : 500MW; Stage-II : 1000MW)

Indian Territory : (Scope :POWERGRID) : 130 km

Sea Route : (Scope : POWERGRID) : 120km

Sri Lankan Territory : (Scope : CEB) : 110 km

Tentative cost : Rs. 5000 Cr. (USD 867 Million)

Rs. 3300 Cr. (USD 645 Million) (Stage-I)

Rs. 1700 Cr. (USD 222 Million) (Stage-II)

Feasibility Study Report : Technical Portion Completed, Other issues

like the economic and financial analysis, funding and recovery of the

investment, legal and Institutional aspects including modalities for

implementation etc. under discussion.

130 Kms

120 Kms

110 Kms

Proposed Route for Interconnection

Madurai-New

Panaikulam

New Anuradhapura

Taliamannar

Thirukketiswaram *

48 Kms

Madurai

India – Sri Lanka Interconnection

Madurai

Panaikulam

New Anuradhapura

Thirukketiswaram

Proposed Route for India – Sri Lanka Interconnection

28

Interconnection of India

with Pakistan

India – Pakistan interconnection

29

• There is a proposal for trade of electricity between Pakistan and India which

is at preliminary stage.

• In pursuance of decision taken in the fifth round of talks on commercial and

economic co-operation between India and Pakistan held at Secretary level

on 27-28 April, 2011 in Islamabad, first meeting of the group of Experts was

held on October 20, 2011 in New Delhi.

• The second meeting of the group of Experts was held at Islamabad on

August 02, 2012 to further discuss and deliberate on the possibility of a

cross-border interconnection between India and Pakistan to facilitate

exchange and trade in electricity.

• It was deliberated that Pakistan may procure upto 500 MW power from

Indian power market on commercial terms.

• The next meeting of the Expert group will be held in India in October, 2012.

Before that, an interim technical level meeting shall be held in India in

September, 2012.

• Institutional Arrangement

• Techno-economical analysis and Preparation of Feasibility Study Report

• Commercial Arrangements

• Financial Arrangements

• Operation of the Interconnection

• Operation of the Grid

• Legal Issues

Road Map for Cross-Border Interconnection

• Trading of Electricity between the participating countries –

Prevalent restrictions

• Agreements/ MOUs between the participating countries need to be signed at various levels (Government, Planning, Operation and Regulatory) between the participating countries in order to study, finalise, implement, operate and maintain the interconnection between the electrical grids of the countries.

• Identification of Nodal Agencies • For Planning and preparation of feasibility study report

• For Operation and Maintenance of the transmission system

• For operation of the grid

• For Sale/Purchase of Power

Institutional Arrangement

• Identification of Joint Coordination Groups

– Technical Coordination Group : responsible for planning of the

interconnection link based on techno-economical study, preparation of feasibility report incorporating designing of equipments, bill of quantities, cost estimates etc.

– Operation & Maintenance Coordination Group : O&M of the interconnection system between the participating countries incl. maintenance of associated communication facilities, coordination of protective devices, maintenance coordination etc.

– Grid Operation and Protection Coordination Group: members from the System Operators of the participating countries to look into various aspects associated with the operation of the cross border links, including any

protection coordination issues.

– Commercial Coordination Group: members from the System Operators of participating countries to look into all commercial aspects related to the operation of the cross border links.

Institutional Arrangement

– Planning of Grid Interconnection

• Formation of Joint Study Team

• Purpose of Interconnection -generation linked scheme (like between Bhutan and India) or strengthening scheme (between India and Bangladesh)

• Identification of Power Exchange - quantum of power to be exchanged between the participating countries and its source need to be identified. The quantum of power and its duration in a day, month and year and thus the total energy to be transferred in either direction also need to identified.

• Type of Interconnection - Joint study need to be carried out to identify the mode of interconnection viz. Radial, Synchronous, Asynchronous based on the power system of the interconnecting countries.

Techno-economic Analysis and Preparation of

Feasibility Study Report

– Design Studies and Equipment parameter finalization

• includes tower configurations, foundation design, conductor and insulator finalization etc.

– Survey, Soil Investigation, Environment Impact Assessment and land identification

– Preparation of Bill of Quantity and Cost estimates

– Economic & Financial Analysis

Techno-economic Analysis and Preparation of

Feasibility Study Report

• Long term secured agreements

• Pricing of power and tariff mechanism

• Security Mechanism including payment (through Government Guarantee from respective governments)

• Terms for Indemnification for disruption of Transmission service

Commercial Arrangements

• Funding arrangement like multilateral, private etc

• Recovery of 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

Financial Arrangements

• For reliable and secure operation of the combined grid, operational and maintenance procedures of the interconnected system between the participating countries would have to be similar, so as to minimize the outages and breakdown of transmission system and ensure satisfactory performance of costly components of the transmission systems for their entire life, thus avoiding premature replacements.

Operation of the Interconnection

• Operating Code

– Operating Philosophy : Both countries would agree to abide by a common grid code for reliable, secure and stable operation of the cross border interconnection.

– System Security Aspects : The system security aspects incorporating isolation/tripping of interconnection link from the grid of respective countries under various conditions and its restoration under supervision by respective System Operator, in co-ordination with System Operator of the other country etc would be specified.

– Protection Coordination : Provision of protections and relay settings shall be coordinated periodically by the System Operators of the respective countries.

Operation of the Grid

• Scheduling and Despatch Procedure •

• Congestion Management

• Metering, Accounting, Deviations from Schedule and Settlement

• Real Time SCADA Data, Communication Facilities, Cyber Security

• Data Recording Instruments such as Data Acquisition System/Disturbance Recorder/Event Logging Facilities/Fault Locator (including time synchronization equipment) shall be provided and shall always be kept in working condition at both ends of the cross border interconnection for recording of dynamic performance of the system.

Operation of the Grid

• Firming up of procedures for dispute settlement and Arbitration

– Agreements on liability for power line failure or damage, and other issues of legal liability concerning grid operation

– Institutional arrangements for governing grid interconnection

– Agreements on operation of power line

– Agreements on power line security

Applicability of Laws of Respective countries/ International Laws should be specified

Legal Issues

• Engineering Consultancy Services (end to end) – Turnkey Execution of transmission projects

– Transmission System Master Plan

– Feasibility Reports/Detailed Project Reports

– Pre-Award Engineering activities

– Post-Award Engineering activities

– Project Management & Construction Supervision

– Quality assurance and Inspection

– Testing and Commissioning

– Telecom

– Establishment of National Load Dispatch Centers

– Tariff determination and regulatory requirements

– Capacity Building

Areas of co-operation

42

Thank You for

Kind attention !