How Much Could South Asia Benefit from Regional Electricity Cooperation and Trade?
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 g...
| Main Authors: | , , , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/06/24713153/much-south-asia-benefit-regional-electricity-cooperation-trade http://hdl.handle.net/10986/22224 |
| Summary: | 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. |
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