A vibrant, competitive, fair and transparent South Asia Regional Electricity Market will further enhance the South Asia power sector competitiveness, streamline investments, making it lucrative for investors who seek fair, steady, and risk-mitigated short- and long-term returns on their capital and will also facilitate optimal allocation of cost & and benefit of clean energy transition in a manner that is sustainable. The 11th Meeting of Task Force-3 on South Asia Regional Electricity Market was organized by USAID’s SAREP on October 11, 2023, to discuss the evolving nature of South Asia’s power market and means to deepen market-based power trade and advance electricity market integration.
The meeting began with a keynote address by Mr. Sugath Dharmakeerthi, Additional Secretary, Ministry of Power, Government of Sri Lanka. He emphasized the need to enhance competitiveness within Sri Lanka’s energy sector and stressed the significance of creating an integrated South Asia Regional Energy Market.
The key objective of TF-3 is to create an enabling environment for the creation of a South Asia regional power market to accelerate market-based CBET transactions.
The 11th Meeting of SAREP Task Force-3 witnessed the participation of the representatives from Bhutan, Bangladesh, India, Nepal, and Sri Lanka.
The 11th TF-3 meeting discussed and deliberated upon a) Cross Border Electricity Trade, Electricity Market Integration and Future Outlook for South Asia b) Existing level of market reform in each country vis-à-vis the electricity market framework for Cross Border Electricity Trade (CBET) and need for power market reform and harmonization/coordination for enhancing electricity market integration and development of South Asia Regional Electricity Market (SAREM) c) Suggestions on any needed change for enhancing current level power market integration in South Asia and further opening of power exchange platform for CBET d) Potential Model for Regional Electricity Market Development in South Asia i.e., South Asia Regional Power Exchange e) Long term vision for Regional Electricity Market Trading Platform in South Asia g) country Updates on South Asia Regional Electricity Market h) recap of the terms of reference of the SAREP Task Force -3 on “ South Asia Regional Electricity Market f) Updates on the planned Interventions of the SAREP Task Force-3 on South Asia Regional Electricity Market g) Terms of Reference of the TF-3 knowledge studies on “Learnings from International Experiences on undertaking Power Market Reforms in a country and its role in Development of Regional Power Market including suggested Regional Electricity Market Vision along with roadmap and action plan for South Asia” and h) Ideas/ new activities under Task Force-3 to meet the key objective of TF-3.
Furthermore, the gathering explored international power market experiences, drawing lessons and insights that could be applied within the South Asian context. The participants also discussed ways to broaden Task Force-3’s objectives and deliberations on various Knowledge studies of the Task Force-3 (KSTF-3).
The Task Force-3 member also undertook a Technical Visit to the Victoria Hydro Power Plant (210 MW), the largest power station in Sri Lanka. As the next step, SAREP will initiate the process of conducting the TF-3 Knowledge Studies (KS) and organize the task force meeting at regular intervals, preferably on a quarterly basis.
SAREP Task Force-3 is one of three task forces dedicated to addressing issues related to CBET and providing practical recommendations for expanding such trade across South Asia. The meeting served as a significant step in advancing the region’s energy market, enhancing cooperation, and fostering a more robust and interconnected electricity trade landscape in South Asia.