Page 9 - AsiaElec Week 09

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Indian power supply rises
INDIA
INDIA’S electricity supply rose by 7.1% during February, provisional government data showed, marking the second straight month of growth after five straight months of decline, Reuters reported.
Total output rose to an average of 3.62bn kWh per day in February, up from 3.38bn kWh in Feb- ruary 2019, according to figures from state-run Power System Operation Corp. (POSOCO).
The higher supply figures suggest a rise in demand, and are a good indicator for expanding industrial output. This contrasts with slowing growth in the Indian economy.
Official demand figures are set to be released by the government’s Central Electricity Author- ity (CEA) later in March.
The country’s power sector has the capac- ity to absorb rises in supply, with considerable over-capacity in the generation sector. However, the transmission, distribution and supply sectors are a noted weakness, with unpaid bills and debts common. This leaves many power plants effec- tively stranded, as they cannot sell their output, or alternatively have trouble finding fuel.
Industry accounts for 40% of India’s annual electricity consumption, according to govern- ment data, with domestic demand accounting for nearly 25% and commercial activity another
8.5%. India’s annual electricity demand in 2019 grew at its slowest pace in six years, according to the CEA, amid a broader economic slowdown.
The country’s overall economic growth decel- erated to 4.7% in the three months to December, government data released last week showed, the weakest pace since 2013 as consumer demand and private investment weakened.
India is anticipated to grow at its slowest pace in 2019/20 since the global financial crisis, according to government estimates.
Meanwhile, the country’s solar sector, which is reliant for imports, especially from China, for 80% of its solar modules and cells, insisted that it could find alternative supply sources.
Following the coronavirus outbreak, there was concern that India’s fast developing solar sector could face a shortage of imported components.
The government has recently decided to give extra time for the commissioning of power pro- jects that face delays owing to the virus outbreak in China. New Delhi has also actively promoted domestic production of solar equipment.
India currently has 86.32 GW of renewables capacity, with 8 GW installed in the nine months to January 2020. The government has set a target of 175 GW by 2022.™
AIIB lends $200mn to Bangladesh
BANGLADESH
THE Chinese-led Asian Infrastructure Invest- ment Bank (AIIB) has confirmed it is to lend $200mn to Bangladesh to increase access to power in Dhaka and the surrounding area.
The money, which is being co-financed by the Asian Development Bank (ADB), will be used to help fund the Dhaka and Western Zone Transmission Grid Expansion Project, which aims to add 7,440 MVA of transmission capac- ity, cut losses from 2.76% to 2.5% and to reduce the number of power cuts per year from 60 to 15 by 2025.
The project, to be carried out by state-owned Power Grid Company of Bangladesh (PGCB), involves building 408 km of new transmission lines and will reduce annual CO2 emissions by 455,785 tonnes. At present, 2% of the popula- tion still have no access to power, reducing the country’s GDP by up to 3% per year, according to government estimates.
“AIIB’s investment gives much-needed financing to provide affordable, reliable and modern energy, especially in areas where people lack basic infrastructure,” said AIIB vice-pres- ident and chief investment officer DJ Pandian.
“The project will also help the power sector tackle climate change impacts, making the grid more climate-resilient.”
Despite problems with power supplies, which see many people using dirty, inefficient and expensive diesel back-up generators, the country has posted economic growth of 7.5% in the last three years, making it the fastest growing econ- omy in South Asia.
Rapid urbanisation is also a major factor in organising power supplies, with nearly half the population expected to live in urban areas by 2025.
In 2019, the AIIB approved two loans to Bangladesh. It lent $120mn to upgrade the grid system in Chittagong region, and made a sepa- rate $100mn loan to finance improved water and sanitation supplies.
In 2018, the AIIB lent $60mn to support the privately run 220-MW Bhola IPP project. The AIIB has so far approved $12.24bn of financing across Asia, 47% of which is co-financed with other institutions. Energy projects account for 31% of the total.™
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