Energy Security in South and South-West Asia:

Energy Security in South and
South-West Asia:
Mr Prabhat Kumar
Joint Secretary (ES & ITP),
Ministry of External Affairs, India
Chair, South and South-West Asia Consultation
Meeting
Expert Group Meeting
Sustainable Energy Development in Asia and the Pacific
21-23 November 2012,
Bangkok
South and South-West Asia:
Energy Access and Availability
SSWA Energy Characteristics
2500
Geothermal,
solar etc
0%
Hydro
1%
Nuclear
1%
120
Source: IEA (2009)
Coal and
Peat
28%
Biofuels and
waste
19%
Energy Consumption per capita (kgoe/capita)
3000
Energy mix
100
80
60
40
Natural gas
21%
20
Crude oil
30%
Turkey
Pakistan
India
Bangladesh
Afghanistan
0 Nepal
0
500
1000
1500
2000
Energy consumption per capita (kgoe)
2000
Sri Lanka
Maldives
Bhutan
Pakistan
4000
0
Nepal
Sri Lanka
500
Maldives
6000
1000
Afghanistan
8000
1500
Iran
Iran
World
India
10000
2000
Bhutan
Turkey
Bangladesh
12000
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2500
0
Level of electrification (%)
Source: World Bank (2009)
HDI
HDI
Income per capita (in 2005 US$ PPP)
14000
Per capita energy consumption and
Source: UNDP (2011), UN (2012)
HDI 3000
0.8
Energy Consumption
Energy consumption vis-à-vis income
level
Source: UN (2012); UNESCAP (2012)
Energy security and
sustainable energy in SSWA
Energy security challenges
• Energy for lighting needs
More than half of the population of South Asia has no access to modern forms of energy.
Iran and Turkey are in better situations.
Decentralized power
- Renewable energy-based decentralized electricity solutions are a priority.
- R&D on establishment of smart mini grids and related pilot initiatives.
- Adoption of best practices on deployment of biomass gasifiers for power generation,
and use of solar lanterns for unelectrified and semi-electrified households.
• Energy for cooking
Traditional biomass: inefficiency, health and safety hazards.
Clean lifeline energy to all
- Dissemination of clean cookstoves that use less firewood and reduce indoor pollution.
- In order to ensure availability of appropriate energy supplies, service delivery and
affordability, need to promote knowledge exchange for better understanding of
rural/urban contexts, penetration of sustainable energy, and better targeting of
subsidies.
Supplementing conventional supply with
renewable energy
- Biomass:
-
Cleaner use of traditional fuels is a policy priority.
India’s lead in development of clean cookstoves and
biomass gasifiers provides an opportunity for
technology dissemination.
- Solar and wind:
- India’s manufacturing base in solar PV modules and
solar thermal systems, can be employed for
Renewable Energy advancement in the region.
- Small hydro:
- Run-of-the-river projects in water-abundant
regions; minimize externalities of hydropower
generation.
Sharing of good practices from SELCO India, LABL, Solar
Home Systems (Bangladesh), amongst others.
Collaborative clean tech development: Institution of clean
fossil fuels and renewable energy fund with differential
contributions.
Possibilities for Subregional
Energy Cooperation in SSWA
Beginning to exploit potential of regional
cooperation for energy security
Energy security
Energy challenges
–
–
–
–
–
Exponentially growing demand, energy
poverty, lack of supplies, poor energy
infrastructure
High import dependence for fossil
fuels
Complementarities across region in
terms of demand- supply mismatches
which can be optimized through grid
connections and cross-country
pipelines
Some energy interconnections have
taken place, some are in process
Development of regional energy
markets in SSWA through creation of
regional energy grids and crosscountry pipelines as a part of the
incipient Asian Energy Highway
South and South-West Asia Energy interconnections
Central Asia
Turkey
Afghanistan
Exports
Exports & Imports
Proposed connection
Nepal
Islamic
Republic
of Iran
Pakistan
India
Maldives
Bhutan
Bangladesh
Sri Lanka
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Agenda for energy cooperation
Up-scaling
isolated,
scattered
experiments
Need for an investor-friendly
resource atlas for the subregion
Support for
application oriented R & D
Capacity building to access
international funds
Focus on the energy-development
-sustainability nexus
Addressing energy poverty as a
dimension
of socio-economic vulnerability
… Agenda for energy cooperation
 Pursue joint techno-economic evaluation of opportunities, and
determination of prerequisites, for instance, synchronization of grids and
land acquisition for transmission right-of-way.
 Develop project-specific legal/institutional arrangements that lend
credibility to initiatives and provide assurance.
 Support from multilateral institutions such as World Bank, ADB and
UNESCAP
 Infrastructure projects: increase stakeholders, spread risks, build investor
confidence and ensure government backing for projects in risk-prone
areas
 Lessons learned: Southern Africa Power Pool, Nord Pool, and power trade
in Europe: significance of domestic reform, operation and pricing protocols
as part of a transmission policy, and a regional coordination body.
Outcome of the SSWA
subregional consultation meeting
South and South-West Asia
Subregional Consultation Meeting
•
•
•
•
6-7 November 2012
Secretariat plus 31 participants
Presentation of background study prepared by TERI
Participants adopted a Chair’s summary
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Chair’s summary
The participants highlighted the following key issues in regards to energy
security and sustainable use of energy in South and South-West Asia.
• The participants noted that South and South-West Asia is characterized by
a diversity in national energy profiles. Given the high dependence on
imports of hydrocarbons (except Islamic Republic of Iran), their economic
dynamism will imply rising fuel import bills in the future. In addition, there
is an uneven distribution of energy resources and a large proportion of the
population of the subregion remain without access to modern energy
services.
• The priorities of poverty reduction and the productive use of locally
available energy resources are perceived as key drivers to improving
access to modern energy services.
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Chair’s summary
• The subregion is also endowed with substantial renewable energy
resources that play a small but increasing complementary role, and has
the capacity to diversify energy sources using locally available wind, solar,
hydropower and biomass resources. However, countries highlighted the
technical, commercial and market risks in harnessing these resources.
• Institutional mechanisms differ across the member States of the
subregion, although at the same time, regional cooperation initiatives
such as the Turkmenistan-Afghanistan-Pakistan-India (TAPI) and the IranPakistan/Iran-Pakistan-India (IP/IPI) gas pipelines and cross-border power
grids provide an opportunity for enhancing energy security
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Chair’s summary
1.
The participants agreed that the lack of access to modern energy services
is a key dimension of deprivation and poverty in the subregion. With over
450 million people in South and South-West Asia without access to
electricity, adequate and sustainable access to energy for all is a not only
an essential development goal itself but is necessary for the achievement
of all the other internationally agreed development goals including the
Millennium Development Goals and the SAARC development goals.
2.
The participants noted that affordability was an aspect of energy access
given widespread poverty in the subregion. Very often subsidies need to
be seen in that context.
3.
The participants stressed the need for improved availability of
information on energy reserves and clean energy potential (both in terms
of renewable energy deployment and energy savings).
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Chair’s summary
4.
5.
6.
In view of demand-supply mismatches and complementarities across
countries in the subregion, the participants recognized the large
potential for power inter-connections and gas pipelines in the subregion
and highlighted this as a crucial area for subregional/inter-subregional
collaboration. The participants emphasized the need to promote
international energy trade and development of regional power markets
in line with the vision of an Asian Energy Highway.
The countries of South and South-West Asia recognized the importance
of an integrated energy market in the region and developing of energy
infrastructure for this purpose and expressed concern that any extraregional influences can compromise the energy security of the region.
Participants recognized that the creation of a subregional knowledge
management system is perceived as an important mechanism. This
would help in sharing and upscaling isolated, scattered good practices in
the domain of energy security and the sustainable use of energy.
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Chair’s summary
7.
8.
9.
The participants noted that exploitation of opportunities of regional
cooperation in energy requires substantial investments for development
of energy infrastructure such as power grids and pipelines. Investments
could be facilitated through public-private partnerships (PPP), foreign
direct investment (FDI) and other multilateral financial institutions.
The participants called for improved access to finance, environmentally
sound technologies and technology transfer as important factors to
deliver sustainable use of energy.
The participants highlighted the need for technology incubation centres
that would provide support for application-oriented R&D and help
stakeholders from the subregion develop targeted energy solutions in the
areas of renewables, smart grids, sustainable consumption, energy
conservation and network-loss reduction.
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Chair’s summary
10. Participants recognized existing and ongoing intergovernmental and
regional initiatives of SAARC and BIMSTEC for energy cooperation
including the proposed SAARC Intergovernmental Framework Agreement
for Regional Energy Cooperation and the SAARC Energy Ring and
expressed the hope that these are expedited and pursued in a timebound manner.
11. The participants recognized the special problems facing the mountain
countries, least developed countries (LDCs), landlocked developing
countries (LLDCs) and small island developing states (SIDS) in their efforts
towards sustainable energy development and called for increased
attention for their national capacity building and appropriate energy
efficient technology transfer.
12. The participants were requested to provide comments on the draft
background study to ESCAP South and South-West Asia Office (ESCAPSSWA, [email protected]) by 15 November 2012. The authors of the
study were requested to incorporate the comments as much as possible
and submit a revised draft which will be shared with the participants.
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Thank you.
20
Thank you.
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