VOL. 25, NO. 17, December 23 2005 (Paush 08, 2062 B.S. )

“South Asian Countries Can Benefit By Regional Energy Trade”

-- SRIDHAR SAMUDRALA

Shridhar B. Samudrala, Deputy Program Manager, Engineer Energy Partnership Program of USEA, was recently in Kathmandu. Samudrala spoke to SPOTLIGHT on various issues regarding the recently concluded meeting of South Asia Regional Energy Transmission Partnership Executive Exchange. Excerpts:

What is the focus of this program?

One of the focuses of the program is talking about regional energy market and to share strategies related to successful planning of a transmission system. They also discussed interconnections to improve energy security and transmission line design. If regional energy transmission is built, all Sough Asian countries will benefit.  It is very positive sign to see that South Asian leaders also stressed the need to build regional grid at the recently concluded 13 th SAARC Summit.

How important is the Regional Energy Transmission?

It is very important and vital to share the energy among the South Asian countries. The link has been established now among all the countries. Bhutan trades power with India incurring 70 percent of revenue. If Nepal does similar trade with India, it will also benefit. The stage of regional grid is under consideration.

How do you see the response of the experts?

The participants are very eager to develop technical modality. Once the issue is settled at the higher level, technical experts will show the way. India is constructing many new interconnections with Nepal and Bhutan. I am very happy to see the technical experts of the region sitting together sharing the information about the energy situation. It was impossible till few years ago. Thanks to the funding of US Agency for International Development, we are able to organize these kinds of meeting in the region.

Do you see any possibility of construction of regional energy grid?

I am very much optimistic. Till a decade ago, no one was ready to buy the idea of regional energy trade in South Asia. Political will is changing now but it still requires time for complete realization. I find the attitude is extremely positive. Different countries have different renewal energy and they have different peak hours. If there is regional transmission, many investors will come to invest in the region. Nobody will come to finance the project as long as there is no guarantee for the rate of return.

South Asian countries have bitter experiences that the leaders don’t have political will. How do you look at it?

If dozens of countries in Southern Africa with different political outlook and different interest can share energy through the regional transmission, I don’t think it is impossible in South Asia, which share many similarities and commonalities. I think the political leaders are gradually changing their will. It will take time but market will drive them to take quicker decision. In the last five years, I have visited Nepal several times and I see sea change in attitudes of the people working in various fields.