Energy Trade in South Asia: Opportunities and Challenges
... fuel in their domestic energy mix; lack of investment for energy infrastructure; limited access to modern energy sources to a large portion of the population whereas challenge remains in overcoming growing energy demands (Srivastava and Misra 2007;Kumar Singh 2013;Rahman et al. 2012). The energy demand in this region is expected to grow at an annual rate of 5%, with households and the industry sector as main contributors (Rahman et al. 2012) with increased economic activity and rapid growth in rural electrification of most populated regions of India (Government of India 2020). ...
... Biomass coming mostly from traditional fuels as well as renewables met about 27.8% percent of total final energy consumption in 2017 of this sub-region. Countries like Bhutan, Nepal, and states with a low-income level of India and rural areas of Bangladesh are heavily dependent on these traditional fuels (Behera et al. 2015) and their current usage pattern is inefficient along with significant negative health impacts due to indoor air pollution (Rahman et al. 2012). The role of hydropower in Bhutan and Nepal is dominant in electricity generation, and owing to decrement in technology cost and clean energy initiatives, the share of solar PV and wind is increasing. ...
Although the BBIN (Bangladesh-Bhutan-India-Nepal) sub-region shares identical socioeconomic characteristics and secures considerable benefits from energy cooperation and power grid connectivity, it is still far behind to grasp its full potential. This paper reviews existing publications and papers from a viewpoint of resource distribution, energy supply, prospects, and policies related to power sector development and cross-border power trading with a detailed consideration of the spatial variation of the largest country, India. The member countries face similar energy problems and the challenge remains in overcoming growing energy demand by attaining emission reduction targets. Limited production but increasing use of imported fuel have also raised serious environmental and energy security concerns. The wide variation in the energy resource endowments among the countries, particularly with hydropower, coal, and natural gas presents both opportunity and challenge in sub-regional energy collaboration. ARTICLE HISTORY
... Low access to energy, energy shortages, and energy security concerns are among the key drivers for strengthening regional power sector cooperation in South Asia. The availability of primary energy sources in the region vary-large hydro potential in Bhutan, India, and Nepal; indigenous resource limitations in Maldives and Sri Lanka; and unmet energy demand in Bangladesh, India, Nepal, and Pakistan that require significant energy imports (Rahman et al., 2011). The increasing aspiration for economic growth and better and sustainable lifestyle for about 1.5 billion population in the region through access to modern energy sources demand greater cooperation. ...
... While SRETS did not deal with the policy and regulatory aspects of regional power market in detail, it emphasized the need for a broad agreement on the mechanisms to be followed at a bilateral level followed by those needed for a multilateral electricity trade platform. Rahman et al. (2011) suggested development of a SAARC regional energy trade and cooperation agreement and a regional trade treaty inclusive of energy trade. The region has experienced slow progress in expanding regional electricity cooperation and trade, and policy and regulatory initiatives are necessary to accelerate the process (Singh et al., 2015). ...
... Much of the energy trade and co-operation between SAARC states is in electricity, with India having a central role given that the system is based on trade between India and Bhutan, and India and Nepal (Rahmatullah, 2010). The centrality of India to the SAARC energy system is reinforced by its role as a hub in the regional oil markets via its importing and refining capabilities (Rahman et al., 2012b). Slowly, the energy infrastructure network is being extended, not only by a series of short oil pipelines between India and Bangladesh but also by a long-distance electricity transmission system between the same two states and the proposal of a similar link between India and Sri Lanka (Timilsina et al., 2015). ...
As the international economy globalises, there is a need for national infrastructure systems to adapt to form a global infrastructure system. This network of networks aids mobility between national systems as a means of supporting their territorial needs and preferences. This reflects a strategic approach to state infrastructuring as nations seek to utilise these physical systems to support and enhance their territoriality. Providing a thorough examination through the lens of economic infrastructure, the book addresses the forces of integration and fragmentation in global networks
... Nevertheless, if the country can develop proper infrastructure for the supply of electricity to its neighboring countries revenues made through exports could raise the Nepalese economy to heights in no time [3]. Developing countries like India, Bangladesh, and Pakistan are close to Nepal and the demand for electricity in those countries is escalating at a great pace [4]. Nepal being rich in water resources, capable of producing 45,610MW [1] that could easily supplement the demand in these south Asian countries and improve the overall economy of the region. ...
Damage of runners and other components of hydro turbine by sediment erosion and cavitation erosion is an inevitable problem associated with hydropower established in a region with mountainous topology. The paper attempts to investigate the suitability and sustainability of the reverse engineering method for the design of the eroded Francis runner. This manufacturing technology is in a progressive phase of development in various parts of the world, so research scholars have been constantly working on the concept to increase the speed and efficiency of the method. The case investigation was conducted on Puwa-Khola 1HPP eroded Francis runner. The paper investigates reverse engineering design methodology of the eroded runner and discusses scope and limitation in the utilization of method at Hydropower sector. Also, the paper suggests suitable 3D scanning techniques, reverse engineering tools, and optimization methods for obtaining mathematically sound models without any hydraulic profile deviation between actual and reversed engineered model
(PDF) Application of Reverse Engineering method to model eroded Francis runner.. Available from: https://www.researchgate.net/publication/343793464_Application_of_Reverse_Engineering_method_to_model_eroded_Francis_runner [accessed Aug 22 2020].
... The per capita electricity consumption is very low of about 283 kWh. Therefore, investment in the energy sector infrastructure is now essential to improve the quality of life and revitalizing the socio-economic progress but the large investment and technical capability required to develop generation, transmission, and distribution facility and topography of Nepal have always posed a challenge in ensuring access to electricity in all parts of the country [3][4][5]. ...
This paper analyzes an optimal deployment of different types of hydropower along with various flexible power supply and storage options in Nepal’s long-term power generation mix. Though Nepal is blessed with huge hydropower potential, it experienced severe power shortages during the last decades. Nepal imported about one-third of its electricity demand from India in 2017 but has the potential to export in the future. A dynamic optimal power generation mix model working on hourly temporal resolution based on large scale linear programming with an objective function to minimize total power system costs subjected to a set of linear technical constraints is developed to seek optimal power supply configuration under different electricity demand growth rate and emission limit scenarios for a planning horizon up to 2050. The model classifies the hydropower of Nepal in three different categories: hydro ROR, hydro PROR and hydro storage and has been modeled independently considering their individual characteristics to identify the optimal operation strategy. Apart from hydropower, the power plants under considerations are coal-based, oil-based, gas-based, biomass-based, nuclear, solar, and wind while pumped-storage and batteries are considered as storage technologies. Simulation results show that the cleaner and cheaper supply option, hydro ROR can serve as a base load power generator whereas hydro PROR having water storage facility with good load following characteristics serves to meet peak demands during winter and summer seasons while baseload during rainy and autumn seasons denying the requirement of storage technologies in almost all demand growth rate and emission limit scenarios.
... The per capita electricity consumption is very low of about 283 kWh. Therefore, investment in the energy sector infrastructure is now essential to improve the quality of life and revitalizing the socio-economic progress but the large investment and technical capability required to develop generation, transmission, and distribution facility and topography of Nepal have always posed a challenge in ensuring access to electricity in all parts of the country [3][4][5]. ...
This paper analyzes an optimal deployment of different types of hydropower along with various flexible power supply and storage options in Nepal's long-term power generation mix. Though Nepal is blessed with huge hydropower potential, it experienced severe power shortages during the last decades. Nepal imported about one-third of its electricity demand from India in 2017 but has the potential to export in the future. A dynamic optimal power generation mix model working on hourly temporal resolution based on large scale linear programming with an objective function to minimize total power system costs subjected to a set of linear technical constraints is developed to seek optimal power supply configuration under different electricity demand growth rate and emission limit scenarios for a planning horizon up to 2050. The model classifies the hydropower of Nepal in three different categories: hydro ROR, hydro PROR and hydro storage and has been modeled independently considering their individual characteristics to identify the optimal operation strategy. Apart from hydropower, the power plants under considerations are coal-based, oil-based, gas-based, biomass-based, nuclear, solar, and wind while pumped-storage and batteries are considered as storage technologies. Simulation results show that the cleaner and cheaper supply option, hydro ROR can serve as a base load power generator whereas hydro PROR having water storage facility with good load following characteristics serves to meet peak demands during winter and summer seasons while baseload during rainy and autumn seasons denying the requirement of storage technologies in almost all demand growth rate and emission limit scenarios.
... Such trade is accompanied by establishment of regional grid and powerful institutional arrangements. The Southern African Power Pool (SAPP) interconnecting 12 countries, provide an example of good practice in the regional energy cooperation (Rahman et al, 2011). Similarly, the other successful examples from the developing world includes West African Power Pool (WAPP) and Central American Power Market (Oseni and Pollitt, 2014). ...
Nepal, with abundant hydropower potential and situated in a geo-politically important place, has the opportunity for cross-border electricity trade. The paper argues that for Nepal, the trade of electricity with neighboring countries of India and China is of both strategic and financial importance. This is because, even if Nepal develops all the potential hydroelectricity and export to neighbors, the contribution of such export will also be insignificant to them where the installed capacity have already crossed hundreds of thousands megawatts. In such backdrops, the paper attempts to explore the major opportunities and challenges of cross-border trade of electricity for Nepal. The paper delves into Nepal's existing plans, policies and regarding which, the paper urges for serious consideration in formulating or implementing them. Presenting the current status of bilateral and multilateral agreements and institutional arrangements, the paper reinforces the fact that cross-border electricity trade is not an easy task. Nevertheless, with prioritization of fulfilling internal demands, it is high time for Nepal to address the existing challenges and grab the opportunities offered by cross-border electricity trade. For this, the paper entails for the development of national strategy in lieu of considering electricity as trade commodity only.
Several low carbon options have the potential to offer multiple co-benefits including reduction in local air pollution, ability to enhance clean energy access, address energy security considerations and improve socio-economic conditions of households. The recent INDCs have reinforced India?s aspirations of rapidly adopting and up-scaling low carbon options in a bid to move along an increasingly efficient and environmentally sustainable development path. This chapter delves on the co-benefits that low-carbon alternatives can provide, while amplifying the concerns and challenges related with adequacy and appropriateness of technological solutions, affordability at consumer and economy-wide levels, and human, infrastructural as well as institutional capacities to manage such transitions. The chapter emphasizes that regional cooperation between countries in Asia can help alleviate resource and capacity constraints in individual countries and can thereby be viewed as a key enabler to achieving a low carbon path for countries like India. Regional co-operation possibilities could range from drawing and building up on successful initiatives implemented across sectors with regard to innovative financing models, inclusion of technological or process related modifications to suit similar socio-economic contexts or to the use of various collaborative mechanisms to support technology development, deployment and transfer across countries. Regional efforts for scaling up finance for infrastructure development linked to both mitigation as well as adaptation needs of the region and enhanced collaboration among countries is expected to play an important role in improving relations and working towards a common goal.
This article critically evaluates the utility sector performance of South Asian economies for the last two decades. Utility sector inputs are key to socioeconomic development, contributing to poverty reduction by fueling economic growth and enabling the fulfillment of basic human needs. After two decades of utility sector reforms, is the sector contributing significantly to the economic growth of the East Asian nations? And what does this augur for the poor? To answer these questions, the results for the five South Asian economies are put side by side, namely, India, Bangladesh, Nepal, Pakistan, and Sri Lanka, focused on the period from 1990 to 2008. Results show a declining GDP share of the sector for countries such as India, Bangladesh, and Pakistan. Put alongside the sector's employment share, the decline in the GDP share along with growth in the employment share for India, Bangladesh, and Pakistan indicate the lack of sectoral expansion as well as modernization. Moreover, a declining contribution of the utility sector to the overall growth of the nation, as compared to other sectors, is evident for all the countries except Sri Lanka. We discuss these and other results in light of the impact on the socially and economically marginalized populations of these countries.
With limited land resources, inadequate energy supply, and growing water stress, South Asia faces the challenge of providing enough water and energy to grow enough food for the burgeoning population. Using secondary data from diverse sources, this paper explores the food, water, and energy nexus from a regional dimension, emphasizing the role of Hindu Kush Himalayan (HKH) ecosystem services in sustaining food, water, and energy security downstream. The analysis reveals that the issues and challenges in the food, water, and energy sectors are interwoven in many complex ways and cannot be managed effectively without cross-sectoral integration. The most distinctive feature of the nexus in South Asia is the high degree of dependency of downstream communities on upstream ecosystem services for dry-season water for irrigation and hydropower, drinking water, and soil fertility and nutrients. This finding suggests that along with cross-sectoral integration to improve the resource-use efficiency and productivity of the three sectors, regional integration between upstream and downstream areas is critical in food, water, and energy security. Within the nexus approach in South Asia, equal attention should be paid to management of HKH ecosystems–especially the watersheds, catchments, and headwaters of river systems–and to tapping the potential of collaborative gains in water, hydropower, and other ecosystem services through coordination across HKH countries.
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