National 8 (Spotlight Weekly)

Regional Market

Experts and policy makers explore the possibilities for promoting regional policy development and energy market reform

By KESHAB POUDEL

South Asian countries have vast potentials for regional integration in energy, but they are far from such cooperation. With an aim to explore the possibilities of promoting regional policy development and energy market reform in South Asia, experts and policy makers from South Asia held extensive discussions recently.

Organized on behalf of the United States Agency for International Development (USAID) and the Academy for Educational Development (AED), participants shared views on constraints, possibilities and challenges in promoting energy market reform in South Asia.

SARI Conference : Sharing of experience

"This seminar will help and identify commonalties among the participants of the region to promote regional policy level development and energy market reform in South Asia," said Mahesh Acharya, from USAID, providing an overview of SARI\Energy program.

Participated by more than 40 experts, senior policy makers, economists, media professionals from Nepal, Bhutan, India, Sri Lanka, Bangladesh and India, the South Asian Regional Initiative in Energy, executive development and training Program was conducted by experts from India, Pakistan, South Africa, Nepal and United States.

"One of the aims of the seminar is to bring all experts so as to enhance the understanding and challenges in the region in terms of market reform in South Asia and other region of the world," said Anupam Sircar, deputy chief of party, AED.

During the five-day seminar, experts on regional energy trade presented papers on how such initiatives are working in other parts of the world. "First of all, we must draw the cost and benefit of the regional energy trade. Only after that can one begin to explore this possibility," said Dr. Tom Breuer.

At a time when more than 15 countries in Africa are sharing energy through the regional grid, the six countries in South Asia are still lagging behind. There is nominal power exchange among the countries of the region. Despite huge potential and possibility to share varied sources of energy that exists among the South Asian nation, the countries are yet to materialize the dream.

"We are sharing power among 15 nations in Africa. As South Africa is largest consumer and producer in terms of energy, it also shares the energy from small Lesotho to middle-sized countries like Tanzania," said Kevin Morgan from South Africa, presenting paper on Regional Institutions and Policies for Market Development. "We don’t have any disputes in the context of power sharing."

Although the participants from the region have shown great interest in developing a regional power pool and grid to share the energy, nobody knows how long it will take for the dream to materialize. At present, Nepal and India have an agreement on sharing up to 100 MW power. Bhutan is selling power to India.

Despite the vastness of energy sources among the nations of South Asia, only a few steps have been taken to harness them for the benefit of the region. Bangladesh has large deposits of natural gas, Nepal and Bhutan can generate enormous hydropower and India is a big buyer with other energy sources.

Although the SARI\Energy has helped to bring all the people from the energy sector in a forum to share their views, it seems that breaking the deadlock among the nations in the region will take a few more years. When European nations can unite, there is more possibility of unity in sharing the resources among South Asians, as they have many commonalities.