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POWER EPC INFRASTRUCTURE SOLAR RESOURCES

South Asia Regional Initiative for Energy Integration

Session: Experience Sharing by Developers/ Investors on

Cross-Border Power Projects

ANKUR VASHISHTHA Sr. General Manager- BD & Strategy September 25, 2014

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Examples of Regional Cooperation across the world

2

North American Grid EU Grid

14000 MW Itaipu Project- Brazil/ Paraguay/

Argentina (1970- 2007)

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South Africa Power Pool Interconnections

NIGERIA BENIN TOGO GHANA

C Ô TE

D’IVOIRE

Kumasi

Obuasi

Prestea

Aboadze

Accra

Volta

Akosombo

Lomé

Momé Hague

Cotonou

Sakété

Existing 161 kV

Committed 330 kV line

Committed 161 kV line

Proposed 330 kV operated at 161 kV

NIGERIA BENIN TOGO GHANA

C Ô TE

D’IVOIRE

Kumasi

Obuasi

Prestea

Aboadze

Accra

Volta

Akosombo

Lomé

Momé

Hagou

Cotonou

Sakété

Existing 161 kV 330 kV line under construction 330 kV line under development

2008

2007

2009 2008-9

225 kV

North West African Power Pool Interconnections (WAPP)

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We all have these common issues to face

• How can we generate more energy to keep pace with the development needs? – Industry, Agriculture, rapidly

growing population, that is also urbanizing etc…

• How can we keep energy priced cheap for those who can’t afford it?

• How can we optimise the benefit-cost on our “modern” environmental values?

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PAKISTAN

Coal, Hydro

AFGANISTAN

Hydro, Gas

NEPAL

Hydro

BHUTAN

Hydro

SRILANKA

Thermal, Hydro

INDIA

Coal, Hydro

BANGALDESH

Gas

Maldives

DG, Renewables

MYANMAR

Hydro, Gas

Integrated use of Energy Sources in the Region

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HP 1,48,701 MW IC 40,798 MW (27%)/ 18.8%

HP 59,000 MW IC 6,516 MW (11%)/ 37%

HP 2423 MW IC 1400 MW (57.7%)/ 45%

HP 1,897 MW IC 230 MW (12.1%)/ 3.4%

HP 42,130 MW IC 761 MW (1.6%)/ 90%

HP 30,000 MW IC 1,488 MW (5.0%)/ 99%

HP 39,720 MW IC 2,046 MW (5.1%)/ 70%

HP 4,01,796.8 MW IC 2,13,,000 MW (53%)/ 21.5%

The South Asia Hydro

Story………..

HP 25,000 MW IC 304 MW (1.2%)/ 55%

HP 3,48,000 MW IC 53,543 MW 15% developed

ALL GREENS

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South Asia - Energy Scenario

7

Energy Scenario

• Increasing energy deficits

• Dominance of a single fuel in energy mix

• Limited exploitation of renewable energy resources

• High dependence on traditional fuels

• Rising import dependence

• Inadequate energy infrastructure

Advantages of Energy Integration

• Optimal utilization of natural resources

• Fuel diversification

• Economies of scale

• Improved energy security and reliability

• Increased economic efficiency in operating the system

• Reduced environmental impact

• Increased revenues from trade and industrial activity

• Faster GDP growth

• Increased foreign exchange earnings for exporting countries

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Is this the right time…..????

• North America & Europe has done, China & South America are fast executing, even Africa, Vietnam, Laos, BHUTAN is developing……. . Macedonia (Cebren Galiste HPP)

If not now then when…????

• Current development pressures have significantly shifted to financial community….

Are the appropriate Stakeholders actively participating

• Set higher benchmark for sustainable development

• Develop institutional capabilities, flag bearer role

• Be sensitive to each stakeholder requirements and proactive risk mitigation plan

We all know for what do we need to do ……but still its not happening……

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What is Stopping us…..????

Trust Deficit

Long discussion slow pace of results... Have we forgotten for whom we are going this !!!!

Are the appropriate stakeholder actively participating

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What do we want…..

Risks

• Sovereign risk

• Commercial risk

• Change in tax regime

• Conflicting provisions in the country of generation and consumption

• Project cost escalation

• Tariff determination

• Open access

• Recovery of transmission charges

• Dispute resolution

What can be done…

• Government level agreements- Say for import of power from Nepal to India (say 5000 MW in the next 10 years)- come from the top

• Government support on both sides to ensure commercial viability of power is fundamental

• Involve Funding agencies like World Bank, ADB to anchor further funding

• Have all stake holder risk proactively identified and addressed.

• Joint Ownership by Utilities

• Coordination groups for Implementation and Operation & Maintenance

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"It always seems impossible until it's done”

By Nelson Mandela