Enhancing Regional Power Trade in Central Asia
In response to a request from Central Asian (CA) countries at the CAREC Energy Sector Coordination Committee meeting, held in March 2015 in Ulaanbaatar, Mongolia, the World Bank commissioned a study to estimate unrealized benefits from regional pow...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/672501486549955103/Enhancing-regional-power-trade-in-Central-Asia http://hdl.handle.net/10986/26047 |
| Summary: | In response to a request from Central
Asian (CA) countries at the CAREC Energy Sector Coordination
Committee meeting, held in March 2015 in Ulaanbaatar,
Mongolia, the World Bank commissioned a study to estimate
unrealized benefits from regional power trade for the four
Central Asian countries of Kazakhstan, Kyrgyzstan,
Tajikistan, and Uzbekistan during the period from 2010 –
2014. The study was implemented by AF Mercados from October
2015 through June 2016. This report reviews the key findings
of the AF Mercados Report, with further details to be found
in the Report itself. The analysis was focused on power
trade benefits aggregated at the regional level, as well as
country-specific benefits. Three cases were considered,
namely (i) benefits including fuel savings only at historic
energy prices, (ii) benefits including both fuel savings and
economic value of avoiding unserved energy at historic fuel
prices, and (iii) benefits including fuel savings and the
economic value of avoiding unserved energy with fuel costs
estimated to be at “market” energy prices. The findings of
the report, show that the benefits for the region could have
amounted to nearly USD1.5 billion if only fuel savings were
taken into account. Should economic value of avoiding
unserved power demand be added to benefits, the benefits
would have reached almost USD5.2 billion for historic energy
prices and about USD6.4 billion for market energy prices.
It’s worth noting that each country could also have
benefited in any of the cases, except for Kyrgyzstan for the
case of including fuel savings only. Furthermore, if the
countries operated together, they could also save over USD
80 million annually, or USD 400 million during the period
from 2010 -2014, by sharing the regional hydro resources to
provide operating reserves, instead of purchasing reserves
at current market prices from outside sources. |
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