The thought of long-range grid connectivity is gaining traction in lots of elements of the world. Southeast Asian (SEA) nations have fashioned the Affiliation of Southeast Asia Nations (ASEAN) to advertise energy commerce and have arrange the ASEAN Energy Grid (APG) programme. In South Asia (SA), Bangladesh, Bhutan, India and Nepal (BBIN) are exchanging energy by means of bilateral channels in energy markets, and shortly additional by means of trilateral transactions by way of India. On the latest G20 convention held in India, regional cooperation was mentioned, and the “One Solar, One World, One Grid” initiative was endorsed by all. Why do we’d like interregional connectivity? Constructing nationwide grids is important to satisfy home electrical energy demand, however connecting grids throughout nations and areas is important to ship low-cost renewable vitality. Cross-border energy commerce can optimise technology prices and capability, cut back fossil
gasoline consumption, air air pollution and carbon dioxide emissions, and enhance renewable vitality share. This can’t be totally tapped by one nation alone, as every nation experiences extra and deficits throughout the day as a result of the demand all the time fluctuates wildly in all grids. Furthermore, value, funding and native air air pollution will be diminished whereas growing vitality safety and facilitating inexpensive vitality entry for improvement and financial progress. For rising economies comparable to Sri Lanka, Bangladesh and Myanmar, the fast availability of energy by means of the establishing of transmission traces could also be preferable, and so they can steadily arrange their very own energy technology in order that their economies begin to increase earlier. The provision of cheaper renewables-based electrical energy and the pressing want for decarbonisation are driving the necessity for extra interconnections on the subregional, intra-regional and inter-regional ranges. This might cut back the necessity for storage as renewable vitality comparable to photo voltaic, wind and hydro energy will be transmitted from neighbourhoods and even from a distance, if out there and doable.
Put in capability within the SA and SEA areas
Within the SA area, roughly 60 per cent of the entire 430 GW put in capability was primarily based on fossil fuels in 2021. Of this, coal accounted for 50 per cent, pure gasoline for 8 per cent and 40 per cent was primarily based on non-fossil fuels.
Within the SEA area, out of a complete energy technology capability of 285 GW, roughly 67 per cent was primarily based on fossil fuels, with 32 per cent from coal, 31 per cent from pure gasoline and 4 per cent from oil. Renewables accounted for 33 per cent, with roughly 20 per cent from hydropower. Among the many nations within the area, Cambodia and Laos are the one nations the place the share of renewables is critical.
Present electrical energy commerce inside the SA and SEA areas
South Asia
Based on information from the Ministry of Energy (MoP), in 2020, India exported 2,280 GWh of energy to Nepal, 7,102 GWh (1,160 MW) to Bangladesh and seven GWh (3 MW) to Myanmar, and imported 6,351 GWh from Bhutan. Throughout winters, Bhutan imports energy from India. Between 2000 and 2019, imports by Bhutan elevated from 19 GWh to 96 GWh. There are interconnections between India and Bhutan on the 400 KV, 220 KV and 132 KV ranges. Main 400 kV interconnections are from Tala in Bhutan to Siliguri in India. Nepal has fewer interconnections at current, however it’s quickly evolving and planning to construct 10,000 MW of hydropower, with a good portion meant for export. This electrical energy change is about to extend additional.
To develop bilateral and trilateral commerce between Bhutan or Nepal and Bangladesh, all interconnections must be by means of India, and the concerned events have reached an settlement on this. The cumulative energy switch capability by means of cross-border interconnections with neighbouring nations is about 4,230 MW, and that is anticipated to be enhanced to six,360 MW, as outlined in Desk 1.
Along with government-to-government agreements, these nations are buying and selling by means of energy exchanges additionally.
Southeast Asia
Beneath the APG programme, the interconnections are grouped into three sub techniques: the higher west system, positioned within the Better Mekong subregion; the decrease west system, positioned in Thailand, Indonesia (Sumatra and Batam), Malaysia (Peninsular) and Singapore; and the east system, which incorporates Brunei, Malaysia (Sabah and Sarawak), Indonesia (West Kalimantan) and the Philippines.
Presently, the higher western a part of the SEA area is effectively built-in. Thailand is the most important electrical energy importer within the SEA area and has developed interconnections with nearly all of its neighbouring nations (besides Myanmar) by means of 20 transmission hyperlinks, of which 17 are with Laos alone. Electrical energy import in Thailand has tripled from 10.7 TWh in 2011 to 33.4 TWh in 2021. Cambodia is the second largest importer and has imported a complete of three,830 GWh from Laos (1,763 GWh), Vietnam (1,247 GWh) and Thailand (810 GWh) in 2020.
Laos is the most important electrical energy exporter within the SEA area and is named the battery of the area due to its massive hydropower potential. Presently, the nation exports electrical energy to Thailand, Cambodia and Vietnam. Furthermore, it has additionally began the provision of round 100 MW of electrical energy to Singapore below the Laos-Thailand-Malaysia-Singapore Energy Integration Mission from 2022. Cross-border energy commerce in jap Malaysia, Indonesia and the Philippines is comparatively small as a result of barrier posed by the ocean. Subsequently, interconnections with these islands haven’t but been established.
Drivers for energy commerce
The necessity for a higher integration of renewables is effectively understood across the globe. Funding within the deployment of renewables is growing and prices are constantly falling. Nevertheless, consciousness of grid connectivity as a software to reinforce renewable vitality assets is barely starting to realize traction. A number of long-term drivers decide the magnitude and route of the move of such commerce:
Driver 1: Development of electrical energy demand
As each the SA and SEA areas are of their financial and electrical energy progress phases, demand stagnation might not be a constraint for a number of many years. Their per capita electrical energy consumption has elevated at nearly an identical electrical energy consumption tempo. Nevertheless, the per capita in these areas is way under the world common of three,200 kWh per capita. Subsequently, electrical energy demand is more likely to enhance with a purpose to meet up with the world common. The electrical energy demand is more likely to enhance to five,375 TWh and 5,465 TWh within the SA and SEA areas respectively.
Driver 2: Power useful resource potential
Each areas should transit to renewable vitality for his or her safety, cost-saving advantages, native setting preservation and to fight local weather change. Because of excessive demand, they’ll want renewable vitality assets and fossil fuels to help the grid for a while. Within the SA area, India dominates with coal, accounting for 90 billion tonnes. Although Bangladesh has some pure gasoline reserves, it barely meets its personal home wants for an prolonged interval. SEA nations even have important reserves of coal, oil and pure gasoline. Lately, coal dependence has elevated within the area, primarily for energy technology, as a result of availability of coal reserves.
The SA and SEA nations are blessed with renewable assets however are presently not assembly their very own home electrical energy necessities as a result of underutilisation of obtainable home assets, together with monetary and technical constraints. Regardless of the falling prices of renewable vitality applied sciences, the contribution of photo voltaic PV and wind stays small, although some markets at the moment are putting in frameworks to higher help their deployment. Each areas have beneficial circumstances to commerce due to massive untapped useful resource availability (as proven in Desk 2).
Driver 3: Time distinction
The time distinction between areas will be helpful in exchanging surplus vitality from photo voltaic, wind or hydro energy for the optimum utilisation of vitality. Even with out the time distinction, energy commerce is happening in shut proximity, comparable to between Nepal and India or Laos and Thailand. Furthermore, as a result of variations in demand patterns, influenced by seasons, festivals, holidays (weekends) and the character of actions (industrial, agriculture, and so on.), commerce can occur yr spherical. Myanmar is half-hour forward of nations comparable to Cambodia, Indonesia, Laos, Thailand, Vietnam, Brunei, Malaysia, Philippines and Singapore.
Driver 4: Seasonal differences
Presently, in Nepal and Bhutan, most hydropower crops are run-of-the-river kind. Throughout monsoons, as a result of excessive water flows, each nations generate surplus electrical energy and have low electrical energy demand. This surplus energy will be exported to India and Bangladesh. In distinction, throughout lean months within the winter from November to March, after they face energy shortages as a result of excessive electrical energy demand and low energy technology, they import energy from India. Seasonal differences are usually not that prime within the SEA nations. Subsequently, components comparable to day by day load curve, electrical energy value and useful resource availability are key components influencing energy commerce.
Each areas have proven willingness to decarbonise their respective energy sectors. In South Asia, India has agreed to grow to be internet zero by 2070. Furthermore, all nations are signatories to the Paris Settlement and have dedicated to attaining the local weather objectives and addressing problems with air air pollution, which is excessive in all nations.
A protracted-term technique for interregional connectivity
The SA and SEA areas are already conversant in and dealing on cross-border energy cooperation inside numerous regional groupings. Institutional recognition facilitates expedited decision-making processes and results in systematic planning. Though BBIN commerce began as late as 2013, it rapidly reached 24 TWh inside a span of 9 years, regardless of the absence of a proper settlement or establishment. This could possibly be attributed to India’s state-of-the-art energy change, which supplies clearing costs each quarter-hour in a clear method. Moreover, there are dispute decision mechanisms for nationwide merchants and discoms, which have fostered belief and facilitated the event of latest energy crops and transmission traces.
Within the SEA area, the Heads of ASEAN Energy Utilities/Authorities was arrange in 1997. Since then, energy commerce has reached 36 TWh in 2020 and has elevated connectivity considerably by means of the institution of 27 transmission traces, facilitated by early agreements between collaborating nations. Nevertheless, energy change nonetheless doesn’t exist. Renewable sources are dispersed with low vitality density, and due to this fact the combination of sources over massive house is required. Hydropower or fossil fuels, and even nuclear, can present substantial quantities of vitality to generate electrical energy in a single place. Such large-scale technology capacities are doable and stay obligatory to satisfy the rising demand for electrical energy. We’d like extra flexibility in transmission techniques to realize increased shares of renewable vitality, which massive areas in 17 nations and 5 time zones can present.
Presently, the connection capability of Myanmar with India is barely 3 MW. If Myanmar accelerates its personal improvement and participates totally, whereas creating its personal hydropower and gasoline assets, it will probably create an excellent state of affairs. The India-Myanmar-Thailand hyperlink doesn’t but exist however such a hyperlink can function a conduit for transmitting energy among the many two areas. Within the SEA area, Thailand is the most important importer, with the utmost variety of interconnections at 19, and Laos is the most important exporter of electrical energy within the SEA area, notably to Thailand. Thailand must have extra choices for imports to reinforce its vitality safety and financial sustainability. Beneath such a situation, it wants to arrange to play an vital position as a hub of interconnections.
Conclusion
Technically, interregional connectivity isn’t tough, however politically, it is rather difficult. Within the meantime, every area must strengthen intercountry and intra-region commerce, in addition to enhance technology and arrange transmission and distribution hyperlinks with nations in order that energy can go to each a part of the respective nations. Furthermore, because the share of renewables will increase, the surprising mismatch between load necessities and provide traits will enhance, which will be pricey and detrimental to progress and additional transformation. Early planning of transmission hyperlinks to all doable customers will help mitigate these challenges. The extra interconnected areas and nations grow to be, the higher the chance that energy can attain all over the place and profit all residents, not simply these within the border linkage areas. Enough emphasis on strengthening the distribution techniques inside every nation, coupled with corresponding investments, is important to make sure that no areas inside nations are remoted and in need of energy. This may even guarantee 100 per cent electrical energy entry to all customers, a lot increased shares of renewable vitality and sooner decarbonisation at decrease prices. Because of this, exporting nations can embark on a brand new financial progress path, and importing nations can achieve entry to electrical energy earlier and at a decrease value. Furthermore, peaceable relations can prevail with mutual interdependence.
The thought of long-range grid connectivity is gaining traction in lots of elements of the world. Southeast Asian (SEA) nations have fashioned the Affiliation of Southeast Asia Nations (ASEAN) to advertise energy commerce and have arrange the ASEAN Energy Grid (APG) programme. In South Asia (SA), Bangladesh, Bhutan, India and Nepal (BBIN) are exchanging energy by means of bilateral channels in energy markets, and shortly additional by means of trilateral transactions by way of India. On the latest G20 convention held in India, regional cooperation was mentioned, and the “One Solar, One World, One Grid” initiative was endorsed by all. Why do we’d like interregional connectivity? Constructing nationwide grids is important to satisfy home electrical energy demand, however connecting grids throughout nations and areas is important to ship low-cost renewable vitality. Cross-border energy commerce can optimise technology prices and capability, cut back fossil
gasoline consumption, air air pollution and carbon dioxide emissions, and enhance renewable vitality share. This can’t be totally tapped by one nation alone, as every nation experiences extra and deficits throughout the day as a result of the demand all the time fluctuates wildly in all grids. Furthermore, value, funding and native air air pollution will be diminished whereas growing vitality safety and facilitating inexpensive vitality entry for improvement and financial progress. For rising economies comparable to Sri Lanka, Bangladesh and Myanmar, the fast availability of energy by means of the establishing of transmission traces could also be preferable, and so they can steadily arrange their very own energy technology in order that their economies begin to increase earlier. The provision of cheaper renewables-based electrical energy and the pressing want for decarbonisation are driving the necessity for extra interconnections on the subregional, intra-regional and inter-regional ranges. This might cut back the necessity for storage as renewable vitality comparable to photo voltaic, wind and hydro energy will be transmitted from neighbourhoods and even from a distance, if out there and doable.
Put in capability within the SA and SEA areas
Within the SA area, roughly 60 per cent of the entire 430 GW put in capability was primarily based on fossil fuels in 2021. Of this, coal accounted for 50 per cent, pure gasoline for 8 per cent and 40 per cent was primarily based on non-fossil fuels.
Within the SEA area, out of a complete energy technology capability of 285 GW, roughly 67 per cent was primarily based on fossil fuels, with 32 per cent from coal, 31 per cent from pure gasoline and 4 per cent from oil. Renewables accounted for 33 per cent, with roughly 20 per cent from hydropower. Among the many nations within the area, Cambodia and Laos are the one nations the place the share of renewables is critical.
Present electrical energy commerce inside the SA and SEA areas
South Asia
Based on information from the Ministry of Energy (MoP), in 2020, India exported 2,280 GWh of energy to Nepal, 7,102 GWh (1,160 MW) to Bangladesh and seven GWh (3 MW) to Myanmar, and imported 6,351 GWh from Bhutan. Throughout winters, Bhutan imports energy from India. Between 2000 and 2019, imports by Bhutan elevated from 19 GWh to 96 GWh. There are interconnections between India and Bhutan on the 400 KV, 220 KV and 132 KV ranges. Main 400 kV interconnections are from Tala in Bhutan to Siliguri in India. Nepal has fewer interconnections at current, however it’s quickly evolving and planning to construct 10,000 MW of hydropower, with a good portion meant for export. This electrical energy change is about to extend additional.
To develop bilateral and trilateral commerce between Bhutan or Nepal and Bangladesh, all interconnections must be by means of India, and the concerned events have reached an settlement on this. The cumulative energy switch capability by means of cross-border interconnections with neighbouring nations is about 4,230 MW, and that is anticipated to be enhanced to six,360 MW, as outlined in Desk 1.
Along with government-to-government agreements, these nations are buying and selling by means of energy exchanges additionally.
Southeast Asia
Beneath the APG programme, the interconnections are grouped into three sub techniques: the higher west system, positioned within the Better Mekong subregion; the decrease west system, positioned in Thailand, Indonesia (Sumatra and Batam), Malaysia (Peninsular) and Singapore; and the east system, which incorporates Brunei, Malaysia (Sabah and Sarawak), Indonesia (West Kalimantan) and the Philippines.
Presently, the higher western a part of the SEA area is effectively built-in. Thailand is the most important electrical energy importer within the SEA area and has developed interconnections with nearly all of its neighbouring nations (besides Myanmar) by means of 20 transmission hyperlinks, of which 17 are with Laos alone. Electrical energy import in Thailand has tripled from 10.7 TWh in 2011 to 33.4 TWh in 2021. Cambodia is the second largest importer and has imported a complete of three,830 GWh from Laos (1,763 GWh), Vietnam (1,247 GWh) and Thailand (810 GWh) in 2020.
Laos is the most important electrical energy exporter within the SEA area and is named the battery of the area due to its massive hydropower potential. Presently, the nation exports electrical energy to Thailand, Cambodia and Vietnam. Furthermore, it has additionally began the provision of round 100 MW of electrical energy to Singapore below the Laos-Thailand-Malaysia-Singapore Energy Integration Mission from 2022. Cross-border energy commerce in jap Malaysia, Indonesia and the Philippines is comparatively small as a result of barrier posed by the ocean. Subsequently, interconnections with these islands haven’t but been established.
Drivers for energy commerce
The necessity for a higher integration of renewables is effectively understood across the globe. Funding within the deployment of renewables is growing and prices are constantly falling. Nevertheless, consciousness of grid connectivity as a software to reinforce renewable vitality assets is barely starting to realize traction. A number of long-term drivers decide the magnitude and route of the move of such commerce:
Driver 1: Development of electrical energy demand
As each the SA and SEA areas are of their financial and electrical energy progress phases, demand stagnation might not be a constraint for a number of many years. Their per capita electrical energy consumption has elevated at nearly an identical electrical energy consumption tempo. Nevertheless, the per capita in these areas is way under the world common of three,200 kWh per capita. Subsequently, electrical energy demand is more likely to enhance with a purpose to meet up with the world common. The electrical energy demand is more likely to enhance to five,375 TWh and 5,465 TWh within the SA and SEA areas respectively.
Driver 2: Power useful resource potential
Each areas should transit to renewable vitality for his or her safety, cost-saving advantages, native setting preservation and to fight local weather change. Because of excessive demand, they’ll want renewable vitality assets and fossil fuels to help the grid for a while. Within the SA area, India dominates with coal, accounting for 90 billion tonnes. Although Bangladesh has some pure gasoline reserves, it barely meets its personal home wants for an prolonged interval. SEA nations even have important reserves of coal, oil and pure gasoline. Lately, coal dependence has elevated within the area, primarily for energy technology, as a result of availability of coal reserves.
The SA and SEA nations are blessed with renewable assets however are presently not assembly their very own home electrical energy necessities as a result of underutilisation of obtainable home assets, together with monetary and technical constraints. Regardless of the falling prices of renewable vitality applied sciences, the contribution of photo voltaic PV and wind stays small, although some markets at the moment are putting in frameworks to higher help their deployment. Each areas have beneficial circumstances to commerce due to massive untapped useful resource availability (as proven in Desk 2).
Driver 3: Time distinction
The time distinction between areas will be helpful in exchanging surplus vitality from photo voltaic, wind or hydro energy for the optimum utilisation of vitality. Even with out the time distinction, energy commerce is happening in shut proximity, comparable to between Nepal and India or Laos and Thailand. Furthermore, as a result of variations in demand patterns, influenced by seasons, festivals, holidays (weekends) and the character of actions (industrial, agriculture, and so on.), commerce can occur yr spherical. Myanmar is half-hour forward of nations comparable to Cambodia, Indonesia, Laos, Thailand, Vietnam, Brunei, Malaysia, Philippines and Singapore.
Driver 4: Seasonal differences
Presently, in Nepal and Bhutan, most hydropower crops are run-of-the-river kind. Throughout monsoons, as a result of excessive water flows, each nations generate surplus electrical energy and have low electrical energy demand. This surplus energy will be exported to India and Bangladesh. In distinction, throughout lean months within the winter from November to March, after they face energy shortages as a result of excessive electrical energy demand and low energy technology, they import energy from India. Seasonal differences are usually not that prime within the SEA nations. Subsequently, components comparable to day by day load curve, electrical energy value and useful resource availability are key components influencing energy commerce.
Each areas have proven willingness to decarbonise their respective energy sectors. In South Asia, India has agreed to grow to be internet zero by 2070. Furthermore, all nations are signatories to the Paris Settlement and have dedicated to attaining the local weather objectives and addressing problems with air air pollution, which is excessive in all nations.
A protracted-term technique for interregional connectivity
The SA and SEA areas are already conversant in and dealing on cross-border energy cooperation inside numerous regional groupings. Institutional recognition facilitates expedited decision-making processes and results in systematic planning. Though BBIN commerce began as late as 2013, it rapidly reached 24 TWh inside a span of 9 years, regardless of the absence of a proper settlement or establishment. This could possibly be attributed to India’s state-of-the-art energy change, which supplies clearing costs each quarter-hour in a clear method. Moreover, there are dispute decision mechanisms for nationwide merchants and discoms, which have fostered belief and facilitated the event of latest energy crops and transmission traces.
Within the SEA area, the Heads of ASEAN Energy Utilities/Authorities was arrange in 1997. Since then, energy commerce has reached 36 TWh in 2020 and has elevated connectivity considerably by means of the institution of 27 transmission traces, facilitated by early agreements between collaborating nations. Nevertheless, energy change nonetheless doesn’t exist. Renewable sources are dispersed with low vitality density, and due to this fact the combination of sources over massive house is required. Hydropower or fossil fuels, and even nuclear, can present substantial quantities of vitality to generate electrical energy in a single place. Such large-scale technology capacities are doable and stay obligatory to satisfy the rising demand for electrical energy. We’d like extra flexibility in transmission techniques to realize increased shares of renewable vitality, which massive areas in 17 nations and 5 time zones can present.
Presently, the connection capability of Myanmar with India is barely 3 MW. If Myanmar accelerates its personal improvement and participates totally, whereas creating its personal hydropower and gasoline assets, it will probably create an excellent state of affairs. The India-Myanmar-Thailand hyperlink doesn’t but exist however such a hyperlink can function a conduit for transmitting energy among the many two areas. Within the SEA area, Thailand is the most important importer, with the utmost variety of interconnections at 19, and Laos is the most important exporter of electrical energy within the SEA area, notably to Thailand. Thailand must have extra choices for imports to reinforce its vitality safety and financial sustainability. Beneath such a situation, it wants to arrange to play an vital position as a hub of interconnections.
Conclusion
Technically, interregional connectivity isn’t tough, however politically, it is rather difficult. Within the meantime, every area must strengthen intercountry and intra-region commerce, in addition to enhance technology and arrange transmission and distribution hyperlinks with nations in order that energy can go to each a part of the respective nations. Furthermore, because the share of renewables will increase, the surprising mismatch between load necessities and provide traits will enhance, which will be pricey and detrimental to progress and additional transformation. Early planning of transmission hyperlinks to all doable customers will help mitigate these challenges. The extra interconnected areas and nations grow to be, the higher the chance that energy can attain all over the place and profit all residents, not simply these within the border linkage areas. Enough emphasis on strengthening the distribution techniques inside every nation, coupled with corresponding investments, is important to make sure that no areas inside nations are remoted and in need of energy. This may even guarantee 100 per cent electrical energy entry to all customers, a lot increased shares of renewable vitality and sooner decarbonisation at decrease prices. Because of this, exporting nations can embark on a brand new financial progress path, and importing nations can achieve entry to electrical energy earlier and at a decrease value. Furthermore, peaceable relations can prevail with mutual interdependence.
