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How much could South Asia benefit from regional electricity cooperation and trade ?

Author

Listed:
  • Timilsina,Govinda R.
  • Toman,Michael A.
  • Karacsonyi,Jorge G.
  • de Tena Diego,Luca
Abstract
The South Asia region is lagging behind many regions in the world in regional electricity cooperation and trading, despite the huge anticipated benefits. This study uses an electricity planning model that produces optimal expansion of electricity generation capacities and transmission interconnections in the long-term to quantify the benefits of unrestricted cross-border electricity trade in the South Asia during 2015?40. The study finds that the unrestricted electricity trade provision would save US$226 billion (US$9 billion per year) of electricity supply costs over the period. The ratio of the present value of benefits, in the form of reduction of fuel costs, to the present value of increased costs due to generation and interconnection would be 5.3. The provision would reduce regional power sector carbon dioxide emissions by 8 percent, mainly because of substitution of coal-based generation with hydro-based generation, although regional emissions would be well above current levels absent other policy interventions. To achieve these benefits, the region is estimated to add 95,000 megawatts of new cross-border transmission interconnection capacity.

Suggested Citation

  • Timilsina,Govinda R. & Toman,Michael A. & Karacsonyi,Jorge G. & de Tena Diego,Luca, 2015. "How much could South Asia benefit from regional electricity cooperation and trade ?," Policy Research Working Paper Series 7341, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7341
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    References listed on IDEAS

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    Cited by:

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    2. Anupama Sen & Rabindra Nepal & Tooraj Jamasb, 2016. "Rethinking electricity sector reform in developing Asia: Balancing economic and environmental objectives," ASARC Working Papers 2016-06, The Australian National University, Australia South Asia Research Centre.
    3. Sadiqa, Ayesha & Gulagi, Ashish & Breyer, Christian, 2018. "Energy transition roadmap towards 100% renewable energy and role of storage technologies for Pakistan by 2050," Energy, Elsevier, vol. 147(C), pages 518-533.
    4. United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West (ed.), 2018. "Achieving the Sustainable Development Goals in South Asia: Key Policy Priorities and Implementation Challenges," SSWA Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) South and South-West Asia Office, number brr5, May.
    5. Vorisek,Dana Lauren & Yu,Shu, 2020. "Understanding the Cost of Achieving the Sustainable Development Goals," Policy Research Working Paper Series 9164, The World Bank.
    6. Das, Anjana & Halder, Arideep & Mazumder, Rahul & Saini, Vinay Kumar & Parikh, Jyoti & Parikh, Kirit S., 2018. "Bangladesh power supply scenarios on renewables and electricity import," Energy, Elsevier, vol. 155(C), pages 651-667.
    7. Singh,Anoop & Jamasb,Tooraj & Nepal,Rabindra & Toman,Michael A., 2015. "Cross-border electricity cooperation in South Asia," Policy Research Working Paper Series 7328, The World Bank.

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