SAARC states to launch energy trade
 

by Khalid Mustafa

Islamabad: The South Asian Association for Regional Cooperation (SAARC) Secretariat's Experts Advisory Council will appoint consultants to work on common grid stations, which will help interconnect SARRC states through energy trade, a senior government official told Daily Times.

"Energy experts from all SAARC states have submitted their proposals to finalise terms of reference to appoint consultants", the official said, adding that the decision to this effect was made in the energy experts' conference in New Delhi in July.

"However, India seems reluctant to interconnect the SAARC region through electricity trade, as it wants bilateral trade and not multilateral."

The official said Pakistan favoured the proposal to realise the integrated electricity system in the SAARC region and had submitted its proposals for finalisation of terms of reference for appointing consultants who will work on the feasibility to install common grid stations at various points in the region.

The official said that Nepal and Bhutan could generate 40,000-mega watts (MW) of hydel electricity, which could be exported to other SAARC countries through common grid stations. Currently, India is benefiting from the hydel power generation by Nepal and Bhutan under a bilateral agreement and it wants the status quo to remain.

The official said that Pakistan and India could export energy to each other's border areas where both countries did not have their own electricity distribution system.

To a question, the official said that SAARC would have an electric power regulatory body that would deal with matters related to energy trade in the region.

An integrated electricity system in the region would mainly benefit Sri Lanka, Bhutan, Bangladesh and Nepal and also help increase economic activity in the region, the official added.

He said that India wanted electricity from Pakistan for border areas in Rajasthan, bordering the latter's Sindh province.

Courtesy- Daily Times, Pakistan