South Asian nations look for common energy grid
NEW DELHI: Power-hungry South Asian nations may advance hopes to
build a common energy grid this week, edging closer to overcoming the
political obstacles that have left some with a power deficit and others
with abundance.
Nepal and Bhutan have substantial untapped hydroelectricity
potential, while Bangladesh has large gas reserves that could be used
domestically or exported to India, Pakistan and Sri Lanka - if only the
infrastructure existed to carry it.
While the economic benefits appear clear, competing political
interests and at times open hostility have stymied the effort.
"Somehow politics keep getting in the way of economics as far as
cross-border projects are concerned," said Amrit Pandurangi, executive
director at PricewaterHouseCoopers.
"Bangladesh at one point of time was willing to supply gas to India
but now the situation has changed. It keeps changing its mind with the
change in government," he said.
India accounts for nearly four-fifths of the electricity generated in
South Asia, yet grapples with the problem of peak shortages at 14.2 per
cent between April 2006 and February 2007.
It already has some connections with neighbouring Nepal and Bhutan,
and is studying the feasibility of linking with Sri Lanka and
Bangladesh, issues that energy officials from South Asia are likely to
discuss at their meeting in New Delhi later this week."
The idea is a positive step. We have a bilateral building block with
Sri Lanka, we have with Bhutan - we are exploring the possibility of
doing that with other neighbouring countries," said India's Power
Secretary Anil Razdan.
India's rapid economic growth and the rising energy needs of its 1.1
billion people are boosting fuel demand, and with 70 per cent of its oil
needs imported, rising energy costs have fuelled inflation to its
fastest rate in two years.
But crippling shortages also threaten to constrain the expansion,
adding urgency to the race for new power capacity.
Merill Lynch, senior director Joseph Jacobelli said the benefits of a
united power system - which could allow open trade, keep a lid on costs
by utilising the cheapest form of generation and encourage efficiency -
would remain out of reach until the supply deficit could be eliminated.
India's National Electricity Policy wants all billion-plus people to
have access to power by 2012 and to raise the per capita availability of
power by nearly 50 per cent, a goal that requires another 100,000
megawatts (MW) of capacity by 2012.
Reuters
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