Electric Power in Asia and the Pacific 2001 and 2002

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Electric Power in Asia and the Pacific 2001 and 2002 Economic Economic and and Social Social Commission Commission for Asia and the Pacific

UNITED NATIONS

Printed in Bangkok April 2005 – 740

United Nations publication Sales No. E.05.II.F.6 Copyright © United Nations 2005 ISBN: 92-1-120414-3 ISSN: 0252-4406 ST/ESCAP/2350

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Where the designation “country or area” appears in the heading of tables, it covers countries, territories, cities or areas. Mention of any firm or licensed process does not imply endorsement by the United Nations. The Secretariat would like to thank Mr. Brian Miller for the use of the photograph taken in Dahanu, India (upper right), and the Queensland Environmental Protection Agency for all other the photographs displayed on the cover of this publication.

Electric Power in Asia and the Pacific 2001 and 2002

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

ELECTRIC POWER IN ASIA AND THE PACIFIC 2001 AND 2002

UNITED NATIONS New York, 2005 i


ST/ESCAP/2350 UNITED NATIONS PUBLICATION Sales No. E.05.II.F.6 Copyright © United Nations 2005 ISBN: 92-1-120414-3

ii

ISSN: 0252-4406


Preface Since 1951, the Economic and Social Commission for Asia and the Pacific (ESCAP) has collected and disseminated data pertaining to the electricity sectors of the region. Over the years, the data have been published under different names, such as Electric Power Bulletin (1951-1960), Electric Power in Asia and the Far East (1961-1970) and, since 1971, biennially as Electric Power in Asia and the Pacific. The objective of Electric Power in Asia and the Pacific is to assist planners and decision makers in countries and areas of the region by making available comparative information on economic, social and environmental aspects of the region’s electric power sectors, including information on stakeholders in the countries in support of network- and partnership-building. The information included in this publication pertains to the years 2001 and 2002. The first part of the publication contains an analysis and overview of electric power development at the regional level considering electricity generation and consumption, electric power generating capacity, access to electricity, electricity prices, and carbon dioxide emissions associated with power generation. Selected statistical tables on fuel consumption, system losses, renewable energy capacity, export/import of electricity, and stand-alone units are also provided for some countries. The second part of the publication contains country or area profiles with information on energy sector development, major achievements, challenges, and stakeholders in the electricity sector. Information is collected primarily through a survey questionnaire filled in by utilities, institutes and other government agencies of the region. Statistics produced and made available by other international organizations have been used to complete or augment the collected information. The ESCAP secretariat would like to extend its deepest gratitude for the cooperation and assistance of the organizations and authorities, which have contributed to the issuance of this publication.

iii


Explanatory notes Symbols The following symbols have been used: “n” slash “a” One hyphen Zero Blank A dot

(n/a) ( - ) ( 0) ( ) ( . )

indicates that data are not available indicate that data are not applicable indicates that the amount is nil or negligible indicates that no information has been provided indicates a decimal point

In overview tables, spaces are used to separate thousands and millions, e.g. 1 234 567 Unless otherwise stated, references to “tons” indicate metric tonnes. Minor discrepancies in totals and percentages are due to rounding.

Abbreviations and units The following abbreviations and units have been used in this publication: ASEAN

Association of Southeast Asian Nations

HPP

hydropower plant

BPDB

Bangladesh Power Development Board

IEA

International Energy Agency

IPP

independent power producer

CEM

Macao Electricity Company

JSC

Joint Stock Company (Azerbaijan)

CJSC

Closed Joint-Stock Company (Armenia)

KEPCO

Korean Electric Power Corporation

CO2

carbon dioxide

DFID

Department for International Development (United Kingdom)

EGAT EMRA

KfW

Kreditanstalt für Wiederaufbau

kg

kilogram

kV

kilovolt

Electricity Generating Authority of Thailand

kVA

kilovolt-ampere

kVARh

reactive kilovolt ampere-hour

Energy Market Regulatory Authority (Turkey)

kW

kilowatt

kWh

kilowatt-hour

LLC

limited liability company (Azerbaijan)

LNG

liquefied natural gas

m

2

square metre

m

3

EnnovaTe Innovation in Environmental Technology (Singapore) EPCos

Japan’s ten major electric power companies

EPPO

Energy Policy and Planning Office (Thailand)

ESCAP

Economic and Social Commission for Asia and the Pacific

GAP

Government Action Plan (Mongolia)

GDP

gross domestic product

GENCO

Generation Power Company Limited (Pakistan)

GRES

State Regional Power Plant (Azerbaijan)

GWh

gigawatt-hour

iv

cubic metre

MENR

Ministry of Energy and Natural Resources (Turkey)

METI

Ministry of Economy, Trade and Industry (Japan)

MIPS

Mongolia Integrated Power System

MMBFOE million metric barrels of fuel oil equivalent MVA

megavolt-ampere

MW

megawatt

MWh

megawatt-hour

NDC

National Dispatch Centre (Mongolia)


NDRC

National Development and Reform Commission (China)

SDPC

State Development Planning Commission (China)

PGCB

Power Grid Company of Bangladesh Limited

SERC

State Electricity Regulatory Commission (China)

PV

photovoltaic

TEDAS

REB

Rural Electrification Board (Bangladesh)

Turkish Electricity Distribution Corporation

TJ

terajoule

SBU

strategic business unit

UES

Unified Energy System of Russia

SHS

solar home system

US$

United States dollars

VAT

value added tax

WAPDA

Water and Power Development Authority (Pakistan)

Reporting period Years referred to in this publication are calendar years, except for the following countries and areas, which use statistical years for the compilation of statistics: Country or area Bangladesh Islamic Republic of Iran

Reporting period July 2000 to June 2002 20 March 2001 to 20 March 2003

Data sources Information for this publication has been collected through survey questionnaires, and has been supplemented with the following data sources where appropriate: Country or area

Note Association of Southeast Asian Nations (ASEAN) Centre for Energy, 2004, accessed in November 2004

Thailand, Singapore

Association of Southeast Asian Nations (ASEAN), 2003, ASEAN energy bulletin, (Indonesia, ASEAN).

Cambodia

Central Electricity Authority, India, accessed in November 2004

India

Electricity Generating Authority of Thailand, 2004, accessed in December 2004

Thailand

Energy Information Administration, 2004, accessed in November 2004

Australia, China, India, New Zealand, Pakistan, Republic of Korea, Russian Federation, Thailand

Eschborn, 2004, Energy Policy Framework Conditions for Electricity Markets and Renewable Energies, 21 Country Analyses, (Germany, Deutsche Gesellschaft for Technische Zusammenarbeit (GTZ) GmbH)

Pakistan

v


vi

Note

Country or area

International Energy Agency, 2004, Energy balances of nonOECD countries, 2001 – 2002 (France, OECD/IEA)

Armenia, Cambodia, China, Hong Kong, China, India, Russian Federation, Thailand

International Energy Agency, 2004, Energy balances of OECD countries, 2001 – 2002 (France, OECD/IEA)

Australia, Japan, New Zealand, Republic of Korea, Turkey

International Energy Agency, 2004, World Energy Outlook 2004 (France, OECD/IEA)

China, India, Russian Federation

International Energy Agency, 2003, CO2 Emissions from Fuel Combustion, 1971 - 2001 (France, OECD/IEA)

All countries

International Energy Agency, 2003, Energy Policies in IEA Countries 2003 Review (France, OECD/IEA)


International Energy Agency, 2003, Energy Prices & Taxes Quarterly Statistics 2003 (France, OECD/IEA)

Australia, New Zealand, Republic of Korea

International Energy Agency, 2003, World Energy Investment Outlook 2003 Insights (France, OECD/IEA)


Jingming, Zhang (ed), 2003, Energy Development Report 2003 (China, Editorial of Energy of China).

China

Ministry of Commerce, Industry and Energy, 2004, Yearbook of Energy Statistics (Republic of Korea, Korea Energy Economics Institute)

Republic of Korea

Ministry of Commerce, Industry and Energy, 2002, Republic of Korea, accessed in October 2004

Republic of Korea

Ministry of Power, 2002, Annual Report 2001-02 (Government of India, India)

India

Ministry of Power, 2003, Annual Report 2002-2003 (Government of India, India)

India

The Royal Government of Cambodia, Ministry of Industry, Mines and Energy, 1999, Cambodia Power Sector Strategy 1999 – 2016 (Cambodia, The Royal Government of Cambodia)

Cambodia

Statistics Division, United Nations ESCAP, 2004, Asia Pacific Figures in 2003 (Thailand, UNESCAP)

All countries

Statistics Division, United Nations, 2004, 2001 Energy Statistics Yearbook (New York, United Nations)

Australia, New Zealand, Russian Federation

Water and Power Development Authority, Pakistan, accessed in November 2004,

Pakistan


Web version of Electric Power in Asia and the Pacific 2001 and 2002 Electric Power in Asia and the Pacific 2001 and 2002 is also available on the web site <www.unescap.org/esd/energy/>. The web site contains the publication and additional information on regional overview and country profiles. The publication and the web version are also available in CD-ROM.

vii

viii

Dram Australian dollar Azeri manat Taka Ngultrum Brunei dollar Riel Yuan renminbi Fiji dollar Hong Kong dollar Indian rupee Iranian rial Yen Pataca Tugrik Kyat New Zealand dollar Pakistan rupee Philippine peso Won Rouble Singapore dollar Baht Turkish lira

Unit

Currency

dram $A M Tk Nu B$ CR Y F$ HK$ Rs Rls ¥ P Tug K $NZ PRs P W R S$ B LT

Abbreviation 2002

2001

2002

Populationa (thousands)

554.0 572.0 3 200 3 200 1.9 1.8 19 400 19 700 4 656.6 4 860.8 8 100 8 100 55.8 57.9 130 000 131 200 47.2 48.6 2 100 2 200 1.9 1.7 323 341 4 000 4 000 13 200 13 500 8.3 8.3 1 276 300 1 284 900 2.3 2.2 813 819 7.8 7.8 6 700 6 800 47.2 48.6 1 027 000 1 052 000 1 753.6 6 907 64 500 65 500 122.5 131.5 127 300 127 400 8.0 8.0 400 400 1 170 1 170 2 400 2 600 6.7 6.6 51 100 52 200 2.2 2.4 3 900 3 900 58.4 61.4 142 900 144 400 51.0 51.6 77 900 79 500 1 326.1 1 200.4 47 300 47 600 29.2 31.3 144 000 143 200 1.9 1.8 4 100 4 200 44.4 43.0 62 300 62 800 1 225 588 1 507 226 68 500 69 600

2001

Exchange rate per US$a

Notes: a - United Nations ESCAP, 2004 b - International Energy Agency, 2004 c - The unofficial exchange rate of 500 K per US$ has been used to calculate tariffs for Myanmar. Figures in this table are used to calculate other indicators in this publication.

Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China Fiji Hong Kong, China India Iran (Islamic Republic of) Japan Macao, China Mongolia c Myanmar New Zealand Pakistan Philippines Republic of Korea Russian Federation Singapore Thailand Turkey

Country or Area

Currency, population and GDP

2.10 468.04 4.70 51.50 n/a 6.00 n/a 1 288.30 n/a 168.90 494.50 110.60 5 707.03 n/a n/a 17.50 71.52 73.00 92.60 639.70 450.00 111.00 175.40 190.07

2001 2.30 480.85 5.20 53.80 n/a 6.20 n/a 1 381.60 n/a 172.80 517.30 118.00 5 715.29 n/a n/a 18.50 74.63 75.10 96.70 680.29 469.30 113.50 184.90 204.87

2002

GDP, 1995US$b (billion US$)

656 24 126 580 396 n/a 18 587 n/a 1 009 n/a 25 209 481 1 715 44 831 n/a n/a 342 18 338 511 1 189 13 524 3 125 27 073 2 815 2 775

2001

719 24 409 642 410 n/a 18 192 n/a 1 075 n/a 25 412 492 1 802 44 861 n/a n/a 354 19 136 520 1 216 14 292 3 277 27 024 2 944 2 944

2002

1995 US$b

GDP per capita,



Contents Preface ...................................................................................................................................................... iii Explanatory notes .................................................................................................................................... iv Currency, population and GDP ............................................................................................................. viii Regional overview ................................................................................................................................... 1 Electricity generation and consumption ........................................................................................ Electricity price .............................................................................................................................. Installed capacity .......................................................................................................................... Access to electricity ...................................................................................................................... Carbon emissions .........................................................................................................................

1 3 4 5 5

Overview tables ........................................................................................................................................ 7 Table 1. Access to electricity ......................................................................................................... 8 Table 2. Capacity by ownership and aggregate maximum demand ............................................. 9 Table 3. Capacity by energy type ................................................................................................ 10 Table 4. Electricity production by ownership ............................................................................... 12 Table 5. Electricity production by energy type ............................................................................ 13 Table 6. Electricity trade .............................................................................................................. 15 Table 7. Electricity consumption by consumer type .................................................................... 16 Table 8. Electricity balance ......................................................................................................... 17 Table 9. Renewable energy potential and development for power generation ........................... 22 Table 10. Stand-alone units ........................................................................................................ 24 Table 11. Fuel consumption for thermal generation .................................................................... 26 Table 12. Electricity sale ............................................................................................................. 27 Table 13. Electricity tariff ............................................................................................................. 30 Table 14. Electricity indicators ..................................................................................................... 35 Table 15. CO2 emissions from public electricity and heat production ......................................... 36 Country / Area information ................................................................................................................... 37 Armenia ....................................................................................................................................... 37 Azerbaijan ................................................................................................................................... 38 Bangladesh ................................................................................................................................. 40 China ....................................................................................................................................... 42 India ....................................................................................................................................... 44 Japan ....................................................................................................................................... 45 Macao, China .............................................................................................................................. 47 Mongolia ...................................................................................................................................... 48 Pakistan ...................................................................................................................................... 50 Republic of Korea ....................................................................................................................... 51 Russian Federation ..................................................................................................................... 52 Singapore .................................................................................................................................... 53 Thailand ...................................................................................................................................... 54 Turkey ....................................................................................................................................... 55 Annex List of organizations and authorities that supplied information to the ESCAP secretariat for the compilation of this publication .......................................................................................... 57

ix


x


Regional Overview Electricity generation and consumption Total electricity generation in the ESCAP region continued to grow during 2001 and 2002, owing primarily to the economic growth experienced by such countries as China, Japan and the Republic of Korea in recent years. The total annual growth rate in electricity generation for the region during the period from 1990 to 2002 was 5.6 per cent; compared with an annual growth rate of 6 per cent between 1990 and 1996.1 The electricity generation from 1992 to 2002 for selected countries in the ESCAP region is shown in figure 1.

information” section of this publication. For economies in transition, estimates indicate an electricity demand growth rate of close to 2 per cent, though there is considerable scope for these countries to use electricity much more efficiently.

Despite the growth in electricity generation for the region overall, electricity generation in some countries, such as Azerbaijan, Armenia and Myanmar, has remained fairly steady. Azerbaijan and Armenia had undergone some market reform and financial difficulties in previous years. However, a number of changes have been made in these countries, which are outlined in the “Country/area

Demand for electricity is linked closely with economic growth, and it is estimated that Asian economies will experience the highest growth in electricity demand over the next few years. For example, the demand in India and China has been estimated to grow at a rate of 4.9 per cent and 4.5 per cent respectively, and these trends suggest that,

Figure 2 displays the most significant electricity producers in the region in 2002. This figure shows that generation is primarily dominated by a few countries, with China, the Russian Federation and Japan collectively accounting for approximately twothirds of all electricity generation in the region.

Figure 1: Electricity generation, 1992 - 2002 1 800 000

6 000 000

1 600 000 5 000 000 1 400 000

GWh

1 000 000 3 000 000 800 000 600 000

GWh

4 000 000

1 200 000

2 000 000

400 000 1 000 000 200 000 0

-1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

Australia

Azerbaijan

Bangladesh

China

Hong Kong, China

Islamic Republic of Iran

Japan

My anmar

Pakistan

Republic of Korea

Turkey

TOTAL (right axis)

Note: Total includes data from the above-named countries as well as Armenia, Brunei Darussalam, Fiji, India, New Zealand, Philippines, Macao (China), Russian Federation, Singapore, and Thailand. 1-

These figures do not include data from the Russian Federation.

1


Figure 2: Electricity generation by country, 2002 Pakistan 1% Thailand 2%

Others Singapore 3% 1%

New Zealand 1% Iran 3%

Russian Federation 16%

by 2030, China will generate as much electricity as the United States of America.

Japan 20% Turkey 2% Australia 4%

India 11% Korea 6%

China 30%

Note: Others includes data from Armenia, Azerbaijan, Bangladesh, Bhutan, Brunei Darussalam, Fiji, Hong Kong (China), Macao (China), Mongolia, Myanmar and the Philippines.

On a per capita basis, electricity consumption in China is still quite low compared with other countries, owing primarily to the large population. Japan ranks among the highest energy consumers per capita within the region; only Australia and New Zealand consume more. However, for the indicator of energy efficiency based on the gross domestic product (GDP),

Figure 3: Electricity consumption per capita, 2002 12 000

kWh/person

10 000 8 000 6 000 4 000 2 000

M Fiji on go lia Ch in a A rm en i Is la Tu a m rk ic Re Th ey pu ail bl an ic d o A f Ira ze n Ru Mac rba ss ao ijan ,C ia n Ho Fe hin ng de a r Re Kon atio n pu g, bl Ch ic i n of a Ko re a Ja Br un Si pan ei ng Da ap ru or Ne ss e w ala Ze m al a A nd us tra lia

Ca m bo M dia ya Ba nm ng ar la de s Bh h ut Pa an kis ta n Ph Ind ilip ia pi ne s

0

Figure 4: Electricity consumption in relation to gross domestic product, 2002 3.50 3.00

kWh/GDP

2.50 2.00 1.50 1.00 0.50

2

In di a Re Ch pu in bl a Ru ic ss o f ia Ira n Fe n de ra tio n A rm en ia A ze rb ai ja n

Is la m ic

Ja pa n M Ho ya ng nm Ko ar ng ,C hi Ba na ng la de sh Si ng ap or e A us tra lia Ph Br ilip un pi ei ne D s Re aru s pu sa bl la ic m of K Ne or ea w Ze al an d Tu rk ey Th ai la nd Pa kis ta n

0.00


Japan ranks as one of the most efficient in the world. The electricity consumption per capita and in relation to GDP, respectively, can be seen in figures 3 and 4.

Figure 5 depicts the electricity generation by ownership for selected countries. The percentage of electricity generated by publicly and privately owned facilities remained fairly steady between 2001 and 2002, although this

2 000 000

1 500 000 GW h

A considerable disparity can be seen between countries when comparing electricity consumption per capita. Countries such as Australia and New Zealand consume almost one hundred times more electricity per person than countries such as Bangladesh and Myanmar.

Figure 5: Total generation by ownership 2 500 000

1 000 000

500 000

0 2001

Publicly ow ned

Public service and commerce 26%

Other 2%

Industry 37%

Agriculture 5%

Transport 0%

Note: Includes data from Armenia, Azerbaijan, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, Fiji, Hong Kong (China), Islamic Republic of Iran, Macao ( China), Mongolia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Thailand and Turkey

Figure 7: Electricity consumption per sector, 2002 (Australia, China, India, Japan, Republic of Korea and Russian Federation) Industry 55%

Household 22%

Privately ow ned

Self-generating

Note: Includes data from Armenia, Azerbaijan, Bangladesh, Bhutan, Brunei Darussalam, China, Fiji, Hong Kong (China), India, Islamic Republic of Iran, Japan, Macao (China), Mongolia, Myanmar, Pakistan, Philippines, Singapore, and Turkey .

Figure 6: Electricity consumption per sector, 2002 (excluding major consumers)

Household 30%

2002

primarily reflects the ownership of facilities in Japan and India. Over this period some countries, such as Turkey, Bangladesh and the Philippines, have implemented electricity market reform measures. Further information for specific countries can be found under the chapter on “Country/area information.” An overview of total consumption for selected countries in the ESCAP region can be seen in figure 6. Electricity is primarily consumed in the industrial and residential sectors, with 25 per cent from commercial and public services. However, to obtain a clearer picture of electricity consumption across the ESCAP region, figure 6 does not include the six largest energy consumers: China, the Russian Federation, the Republic of Korea, Japan, India and Australia. Figure 7, which only includes the six major energy-consuming countries, shows the strength of the industrial sector as more than half of the electricity consumption is attributed to this sector. Table 7 provides further detail on electricity consumption for various countries in the ESCAP region.

Electricity price

Public service and commerce 14%

Agriculture 6%

Transport 3%

Figure 8 shows a comparison of electricity tariffs for 100 kWh of electricity for selected countries in the ESCAP region. A variety of pricing schemes exist within some countries due to factors such as different geographical regions or power generating companies.

3


Therefore, figure 8 is only indicative of the typical price of electricity within each country. There is considerable variation between different countries and between domestic, commercial and industrial customers within a country. Table 13 provides more specific information on electricity tariffs.

Installed capacity The mix of energy capacities for 2002 can be seen in figures 9 and 10. Although renewable energy sources do not play a substantial role in electricity generation for many countries, its contribution to the overall capacity in Bhutan, New Zealand, Pakistan, Philippines and Turkey should be noted. In the Philippines, around 30 per cent of

Figure 8: Electricity prices, 2002 20 18

p KWh $US per 100

16 14 12 10 8 6 4 2

Households

Industry

Ja pa n Ze Re al pu an bl d ic of Ko re a Ne w

A

rm en ia A ze rb ai ja Ba n ng la de sh Bh ut an Ca m bo di a

Ho ng Is Fi Ko la ji m ng ic ,C Re hi pu na bl ic of M Ira ac n ao ,C hi na M on go lia Pa kis ta n Si ng ap or e Tu rk ey M ya nm ar A us tra lia

0

Commerce

Figure 9: Capacity by energy type, 2002 35 000 30 000 25 000 MW

20 000 15 000 10 000 5 000

4

Tu rk ey

A

rm en ia A ze rb ai ja Ba n ng la de sh Br Bh un ut ei an Da ru ss al am Ho ng Is Fi Ko la ji m ng ic ,C Re hi pu na bl ic of M Ira ac n ao ,C hi na M on go lia M ya nm Ne ar w Ze al an d Pa kis ta n Ph ilip pi ne s Si ng ap or e Th ai la nd

0

Coal

Oil

Natural gas

Multi-fired

Nuclear

Large and medium hydropow er

Geothermal, solar PV and w ind

Combustible renew ables and w aste

Other


Figure 10: Capacity by energy type (large electricity generators), 2002 400 000 350 000 300 000

MW

250 000 200 000 150 000 100 000 50 000 0 China

Japan

Russian Federation

India

Republic of Korea

Australia

Coal

Oil

Natural gas

Multi-fired

Nuclear

Large and medium hydropow er

Geothermal, solar PV and w ind

Combustible renew ables and w aste

Other

the electricity generated is from renewable resources, specifically hydropower and geothermal power. Bhutan, Pakistan and Turkey also utilize a reasonable amount of hydropower. Otherwise, thermal generation dominates electricity production. There was no substantial change in the ratio of new and renewable energy sources to thermal sources from 2001 to 2002. The use of renewable energy sources is increasing, however, with many countries planning to expand their use of renewable resources. This is described in further detail for some countries in the “Country/area information” section.

Access to electricity Table 1 provides some detail on the level of access to electricity. The population of a number of countries, particularly people living in rural or remote areas, have little access to electricity. Such countries as Bangladesh, Fiji and Mongolia are progressing steadily in the expansion of their electricity supply, which is represented in table 1 by a slight increase in the percentage of electrified villages. Many countries see a benefit in exploiting renewable energy resources for their rural electricity supply and, to facilitate this, a number of programmes are currently being investigated or implemented.

Carbon emissions Figure 11 shows the total electricity-related carbon dioxide (CO 2) emissions for 2001 of a number of countries in the ESCAP region. The most significant emitters generate the most electricity (see figure 2). China’s strong growth in electricity generation and large population are reflected in its position as the most significant carbon emitter. However, other factors that may affect carbon dioxide emissions in some countries include inefficient operation of generating facilities, the type of energy source or fuel used, loss of power through the distribution system, reliance on energy-intensive industries for economic growth and limited demandside management. Australia’s heavy dependence on fossil fuels for power generation and its high electricity consumption per capita have ranked it the most significant emitter of carbon dioxide per person compared with other countries in the ESCAP region. Some other countries with high rates of electricity consumption per capita, such as New Zealand and Japan, have much lower carbon emissions per capita, as can be seen in figure 12. This is primarily due to less reliance on fossil fuels and more on hydropower or nuclear energy.

5

6

In di a Th ai Is la la nd m ic Re Ch pu in bl a ic of Ira A n ze rb Ne ai ja w n Ze al an d Re pu Ja bl pa ic n of Ko re a Ho Tu ng rk ey Ru Kon g, ss C ia hi n na Fe Br d un e r ei Da atio n ru ss al am Si ng ap or e A us tr a lia

M ya nm Ba ar ng la de s Pa h kis Ph tan ilip pi ne s A rm en ia

kg CO2 per capita

In di a Ch in a

rm en ia Br M un ya ei nm Da ar ru ss Ne al am w Ze a Ba lan d ng la de sh A ze Ho rb ng Ko aija n ng ,C hi na Ph ilip pi ne Si s ng ap or e Pa kis ta n Th ai Is la la nd m ic Tu Re rk pu ey bl ic of Ira n A us tr a lia Re pu Ja bl pa ic Ru n of ss Ko ia n Fe rea de ra tio n

A

Million tons CO2


Figure 11: Total carbon dioxide emissions for 2001

1 600

1 400

1 200

1 000

800

600

400

200

0

Figure 12: Carbon dioxide emissions per capita for 2001

12 000

10 000

8 000

6 000

4 000

2 000

0


Overview tables Overview tables contain statistical data supplied by organizations and authorities from countries or areas in the ESCAP region (see the Annex for a list of these organizations and authorities) as well as data calculated by ESCAP. The tables include electricity generation and consumption, electric power generating capacity, access to electricity, electricity prices, stand-alone units, renewable energy potential and development, and CO2 emissions from power generation.

7

8

d

4 048

1 147

2002

n/a

432

9 883

n/a

552

n/a

432

9 883

n/a

566

6 725

816

11 724

333

698

130 000

8 141

3 213

2001

6 787

826

11 724

341

716

131 600

8 203

3 213

2002

Total (thousands)

4 154

2 066

2002

n/a

n/a

n/a

17

n/a

n/a

n/a

17

17 979 19 964

4 130

2 066

2001

4 048

1 147

2002

n/a

n/a

n/a

14

n/a

n/a

n/a

16

21 021 22 148

4 011

1 147

2001

Rural (thousands)

8 203

3 213

2002

n/a

753

333

31

n/a

879

341

33

39 000 42 112

8 141

3 213

2001

Total (thousands)

Estimated population with access Urban (thousands)

n/a

73

442

4 100

4 171

35 057 36 459

n/a

72

437

-

n/a

553

47 697 49 751

n/a

545

437

442 6 042

626

4 100

4 171

82 753 86 211

5 923

617

Rural (per cent)

Total (per cent)

Percentage of villages electrified

100

37

n/a

5

100

76 100

n/a

n/a

100

12

60

100

100

100

38

n/a

5

100

100

n/a

n/a

100

11

65

100

100

n/a

100

n/a

50

-

75 93

n/a

n/a

100

3

21

100

100

n/a

100

n/a

50

-

94

n/a

n/a

100

3

22

100

100

100

58

12

24

100

75 98

n/a

6

100

5

30

100

100

100

59

12

24

100

98

n/a

7

100

5

32

100

100

100

100

56

n/a

53

100

84 67

66

n/a

100

n/a

41

100

100

100

100

57

n/a

58

100

84 68

75

n/a

100

n/a

45

100

100

2001 2002 2001 2002 2001 2002 2001 2002

Urban (per cent)

Estimated population with access

Notes: a - Access to electricity is estimated as: (number of people directly benefited by electricity)/(total population). Access to stand-alone electricity is not included. b - Population figures for Bhutan are inconsistent with official United Nations figures (see page viii). c - Access to electricity in terms of population is derived from available data on households based on a 1996 census. d - Population data are for mid-year. e - Population data are from 20 March 2002 to 20 March 2003. f - Access to electricity in terms of population is derived from available data on households based on a 1996 census. Source of data for India is Central Electricity Authority, accessed in 2004.

79 200

145 950 4 171

142 860

52 170

69 645

48 890

51 140

2 570

442

127 291

4 100

4 171

47 500

36 519

2 535

437

126 926

68 530

4 100

97 060

35 798

1 105

-

Singapore f Turkey

95 360

Pakistan

15 651

1 090

-

77 900

15 342

Myanmar

1 465

442

Philippines

1 445

437

285 506 305 080 741 494 746 920 1 027 000 1 052 000 217 611 554 450 772 061 42 837 43 848 21 692 21 692 64 529 65 540 42 837 43 848 20 280 20 389 63 117 64 237

n/a

394

384

n/a

150

1 840

n/a

4 011

1 147

2001

Rural (thousands)

Estimated population

30 926 100 100 100 674

4 154

2 066

2002

1 840

n/a

146

Mongolia

Macao, China

Japan

India Iran (Islamic e Republic of)

Hong Kong, China

Cambodia Fijic

Brunei Darussalam

Bhutan

b

4 130

29 900

2 066

Azerbaijan Bangladesha

2001

Urban (thousands)

Armenia

Country or area

Table 1. Access to electricity


5 460 n/a

10 074 4 386

8 848 15 000 21 681

196 295 7 657 15 000 21 360 n/a 6 694 3 598

11 568 10 752 210 064 352 n/a -

685 3 258 50

5 137 3 420 423 553 50 140 95 883 30 605 18 045 838 1 006

146

3 050

140 92 382 28 032 18 534 838 976 8 204 10 074 n/a

3 050 40 988 5 320 3 320 369 454 97 810 3 258 62

149

3 736

16 473 3 374

n/a

901 31 689 n/a -

901 30 241 n/a 308 n/a

270 n/a 5 63

6 -

2002

6 -

3 201 270 n/a 5 63

2001

Industries

Self-generating

3 196 44 189 5 590 4 005 377 775 147 319 481 146 11 568 103 134 28 933 258 839 352 838 976 8 512 15 534 13 380 50 859 212 768 7 657 21 695 28 332

2001

3 199 45 312 5 407 4 230 430 874 160 356 602 146 11 606 107 534 31 506 261 730 397 838 1 006 8 610 15 819 14 702 53 801 205 600 8 848 23 115 31 846

2002

Total capacity

19 612

10 128 7 493 43 125

23 062 173 069 365 526 790

105 9 541

3 712 3 033 92

2001

demand

21 006

10 389 7 721 45 773

24 750 182 378 374 540 860

110 9 329

3 507 3 218 93

2002

Aggregate maximum

d - Figure under “Publicly owned” includes total for publicly and privately owned utilities. Source of data for India is the Ministry of Power, 2002 and 2003. Source of data for the Republic of Korea is the Ministry of Commerce, Industry and Energy, 2004. Source for China is Energy of China, 2003 and the Energy Information Administration, 2004. Source for the Australia, the Russian Federation and New Zealand is United Nations, 2004 and the Energy Information Administration, 2004. Sources for Cambodia is ASEAN, 2003 and The Royal Government of Cambodia, 1999. Source for Thailand is the Electricity Generating Authority of Thailand, 2004.

n/a 8 114 6 429

5 745 10 316

11 606 11 651 211 996 397 n/a -

2002

2001

2001

2002

Privately owned

Publicly owned

Public utilities

Notes: a - Figure under “Publicly owned” includes total for publicly and privately owned utilities. b - The installed capacity for Cambodia listed under 2001 is data from 1999. c - Figure under “Publicly owned” includes total for publicly and privately owned utilities.

Armenia Australiaa Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodiab China Fiji Hong Kong, China India Iran (Islamic Republic of) Japan Macao, China Mongolia Myanmar New Zealandc Pakistan Philippines Republic of Korea Russian Federationd Singapore Thailand Turkey

Country or area

Table 2. Capacity by ownership and aggregate maximum demand (MW)


9

10

a

Coal

g

d

f

h

0

6 991

18 808

-

146 670

15 531

3 963

150

2 810

-

802

-

29 390

-

61 396

5 082

6 983

20 228

-

139 600

15 931

3 963

150

2 639

-

802

-

30 710

-

63 801

5 082

0

265 547

-

0

-

37 895

2002

Oil

2 000

3 950

4 490

3 905

-

30

36

352

48 540

459

1 014

1 103

60

14

16

494

1 914

2001

-

2 400

3 950

4 280

3 526

3 253

30

36

352

46 130

421

1 163

1 218

60

14

16

494

2002

Notes: a - Total for “coal” for Australia includes all thermal power production from coal, oil and gas. b - Total for “coal” for China includes all thermal power production from coal, oil and gas. c - Figures shown in the table are gross installed capacity. d - The additional capacity of 45 MW comes from the first unit of gas turbine (open cycle) of the combined cycle, which can be fired by either diesel oil or natural gas. e - Capacity under “oil” is for diesel generators. f - Total for “coal” for New Zealand includes all thermal power production from coal, oil and gas. g - The rated capacity is used. The capacity required for station service or auxiliaries is

Turkey

Thailand

i

Singapore

Russian Federation

Republic of Korea

Philippines

Pakistan

New Zealand

Myanmar

Mongolia

e

Macao, China

Japan

Iran (Islamic Republic of)

India

Hong Kong, China

Fiji

China

c

-

Brunei Darussalam

237 500

-

Bhutan

b

0

Bangladesh

35 504

2001

Azerbaijan

Australia

Armenia

Country or area

7 247

4 303

1 538

2 763

1 129

619

0

-

64 630

6 230

11 561

1 872

0

860

3 506

106

1 756

2002

-

2 758

-

11 436

10 020

-

0

-

-

18 462

1 271

0

-

0

2 911

-

12 186

5 923

-

0

45

-

20 756

1 271

0

-

0

4 585

2002

Multi-fired 2001

-

-

-

-

-

-

0

-

n/a

460

273

2001

-

-

-

-

-

0

-

n/a

460

275

2002

Other fossil fuels

Nuclear

-

21 730

13 716

325

-

-

n/a

-

44 920

-

2 860

0

2 200

-

-

0

-

0

408

2001

-

21 242

15 716

325

-

n/a

-

45 740

-

2 720

0

2 200

-

0

-

0

408

2002

not provided and therefore cannot be deducted from the rated capacity. h - Total for “coal” for the Russian Federation includes all thermal power production from coal, oil and gas. i - Total for “coal” for Thailand includes all thermal power production from coal, oil and gas. Source of data for the Republic of Korea is the Ministry of Commerce, Industry and Energy, 2004. Source of data for India is the Ministry of Power, 2002 and 2003. Source for China is Energy of China, 2003 and the Energy Information Administration, 2004. Source for Thailand is the Electricity Generating Authority of Thailand, 2004. Source for Australia, the Russian Federation and New Zealand is United Nations, 2004 and the Energy Information Administration, 2004.

4 851

3 112

1 538

1 063

-

619

0

-

63 260

6 938

10 864

1 872

0

761

-

3 281

2 404

1 756

2001

Natural gas

Table 3. Capacity by energy type: Fossil fuel and nuclear energy (MW)



Table 3. Capacity by energy type b. New and renewable energy (MW) Country or area

Hydropower (Large and medium) 2001

Armenia a Australia

Azerbaijan Bangladesh

Bhutanb

Brunei Darussalam

China Fiji India

Iran (Islamic Republic of)c Japan

Macao, China Mongolia

Myanmar New Zealand d Pakistan

Philippines e

Republic of Korea Russian Federation Singapore Thailand

Turkey

2002

1 032 7 670 1 002 230 351 79 400 80 25 574

1 035 6 203 1 020 230 405 86 075 80 26 660

45 325 0 327 5 193 4 902 2 524 3 876 44345 2 886 11 657

46 387 0 357 5 260 4 902 2 524 3 876 44 700 2 886 12 225

Notes: a - The 2002 figure for “Combustible renewables and waste” for Australia includes the installed capacity from other renewable sources. b - Capacity under “Other” for Bhutan is small hydropower (100 kWh Fiji Hong Kong, China Hongkong Electric Co. Ltd. Minimum charge for the first 20 kWh For consumption exceeding 20 kWh For the first 150 kWh For 151-300 kWh For 300-500 kWh For 501-700 kWh For 701-1,000 kWh For over 1,000 kWh CLP Power Hong Kong Ltd. Minimum charge per every two months For the first 400 kWh For 401-1,000 kWh For 1,001-1,800 kWh For over 1,800 kWh Iran (Islamic Republic of) Japan Macao, China Subscribed demand = 3.3kVA Monthly consumption = 250 kWh Mongolia Myanmarb Myanma Electric Power Enterprise For 1-50 kWh 51-200 kWh 201 kWh and above New Zealandc Pakistan Republic of Korea Singapore Low tension Turkeyd TEDAŞ Notes: a - Includes 10 per cent tax. b - The tariff for Myanmar is calculated on the basis of the unofficial exchange rate in effect in 2001 and 2002 and is inconsistent with United Nations statistics.

30

2001

2002

4.48 6.40 2.06 4.18

4.34 6.97 1.97 4.25

1.06 1.48

1.03 1.65

8.75 13.75 16.25 8.95

8.75 13.75 16.25 9.36

$2.00

$2.00

10.00 11.13 12.26 12.26 13.28 14.33

10.00 11.13 12.26 13.99 15.01 16.06

$3.85 10.97 11.87 12.69 13.79 4.16 18.84

$3.85 10.97 11.87 12.69 13.79 1.23 17.33

13.88

13.63

4.62

4.62

0.50 2.00 5.00 6.04 4.43 6.92

0.50 2.00 5.00 5.81 5.18 8.50

10.46

8.34

6.54

9.71

c - Includes 12.5 per cent tax. d - Average tariff. Source for Australia, New Zealand and the Republic of Korea is the International Energy Agency, 2003.


Table13b. Electricity tariff: commerce Country or area

Armenia Azerbaijan Bangladesh Bhutan Cambodia 130 000 kWh Fiji 15,000 kWh/month Maximum demand tariff - >1,000kW Demand charge Energy charge Demands between 500 kW and 1,000 kW Demand charge Energy charge Demands between 75 kW and 500 kW Demand charge Energy charge Demands in excess of 5,000 kW Hong Kong, China Hongkong Electric Co. Ltd. Minimum charge for the first 30 kWh For over 30 kWh For the first 1,500 kWh over 30 kWh For over 1,500 kWh CLP Power Hong Kong Ltd Minimum charge per month For the first 5,000 kWh For over 5,000 kWh Iran (Islamic Republic of) Japan Macao, China Subscribed demand = 19.8 kVA Monthly consumption = 2,000 kWh Mongolia Myanmara For small power: For general purposes: 1-50 kWh 51-200 kWh 201 kWh and above Pakistan

Electricity tariff (US cents per kWh) 2001

2002

3.58 6.34 8.51 1.48

3.57 6.07 8.65 1.65

12.50 15.00 16.25

12.50 15.00 16.25

9.004 8.7

9.41 9.09

7.98 5.22

8.34 5.45

7.98 5.87

8.34 6.14

7.98 8.34 6.09 6.36 Special prices may be Special prices may be negotiated with customers. negotiated with customers.

3.83 12.77

3.83 12.77 13.79

3.72 12.41 12.28 15.62 12.60

3.72 12.41 12.28 4.96 11.76

14.00

13.75

4.02

4.36

5.00 per kWh with a 0.6 per horsepower capacity

5.00 per kWh with a 0.6 per horsepower capacity

0.50 2.00 5.00 12.05

0.50 2.00 5.00 11.53

31


Table 13b. Electricity tariff: commerce (continued) Country or area

Singapore Low tension High tension (22kV and 6.6kV): All units (7.00 am to 11.00 pm) All units (11.00 pm to 7.00 am) Contracted capacity charge Uncontracted capacity charge Reactive power charge

Turkeyb TEDAŞ

Electricity tariff (US cents per kWh) 2001

2002

10.46

8.34

7.67 6.15 $4.74/kWh/month $7.11/chargeable kW/month 0.38 cents/chargeable kVARh for an amount exceeding 62% of kWh consumption.


8.07

9.55

Notes: a - The tariff for Myanmar is calculated on the basis of the unofficial exchange rate in effect in 2001 and 2002 and is inconsistent with United Nations statistics. b - Average tariff.

32


Table 13c. Electricity tariff: industry Country or area

Armenia Australia Azerbaijan Bangladesh Bhutan Cambodia 130,000 kWh Fiji 15,000 kWh/month Maximum demand tariff - >1,000kW demand charge per month energy charge Demand between 500 kW and 1,000 kW demand charge energy charge Demand between 75 kW and 500 kW demand charge energy charge Demands in excess of 5,000 kW

Hong Kong, China Hongkong Electric Co. Ltd. Minimum charge for the first 30 kWh For over 30 kWh For the first 1,500 kWh over 30 kWh For over 1,500 kWh CLP Power Hong Kong Ltd. Minimum charge per month For the first 5,000 kWh For over 5,000 kWh Iran (Islamic Republic of) Japan Macao, China Subscribed demand = 100 kVA 33% consumption incurred during off-peak period 80% load factor Myanmara Myanma Electric Power Enterprise

Electricity tariff per kWh (US cents per kWh) 2001 2002 3.17 3.17 3.29 5.63 1.48

3.07 3.66 3.16 5.75 1.65

15.00 13.75 12.50

15.00 13.75 12.50

9.00 8.70

9.41 9.09

7.98 5.22

8.34 5.45

7.98 5.87

8.34 6.14

7.98 6.09 special prices may be negotiated with customers.

8.34 6.36 special prices may be negotiated with customers.

$3.75 12.49

$3.83 12.77 13.79

$3.72 12.41 12.28 7.62 12.60

$3.72 12.41 12.28 2.13 11.76

12.50

12.25

5.00 per kWh with a 0.6 per horsepower capacity charge.

5.00 per kWh with a 0.6 per horsepower capacity charge.

33


Table 13c. Electricity tariff: industry (continued) Country or area

New Zealand Pakistan Republic of Korea Singapore High tension (22kV and 6.6kV) All units (7.00 am to 11.00 pm) All units (11.00 pm to 7.00 am) Contracted capacity charge Uncontracted capacity charge Reactive power charge

Extra high tension (66kV and above) All units (7.00 am to 11.00 pm) All units (11.00 pm to 7.00 am) Contracted capacity charge Uncontracted capacity charge Reactive power charge

Turkeyb TEDAŞ

Electricity tariff per kWh (US cents per kWh) 2001 2002 3.02 7.12 5.53

2.96 6.82 6.54

7.67 6.15 $4.74/kWh/month $7.11/chargeable kW/month

6.29 3.91 $5.01/kWh/month $7.51/chargeable kW/month

0.38 cents/chargeable kVARh for an amount exceeding 62% of kWh consumption.

0.4 cents/chargeable kVARh for an amount exceeding 62% of kWh consumption.



6.45

7.68

Notes: a - Average tariff. b - The tariff for Myanmar is calculated on the basis of the unofficial exchange rate in effect in 2001 and 2002 and is inconsistent with United Nations statistics. Source for Australia, New Zealand and the Republic of Korea is the International Energy Agency, 2003.

34

1 127 9 304 2 065 89 183 7 630 31 837 656 5 541 344 1 507 6 602 3 985 896 59 8 439 304 502 5 294 4 293 7 230 1 475 1 416

1 063 9 652 2 068 96 222 7 663 34 925 709 5 612 357 1 604 6 479 4 198 785 66 8 887 310 488 6 179 4 318 7 454 1 589 1 478

1.72 0.39 3.56 0.23 n/a 0.42 n/a 0.83 n/a 0.22 0.71 0.88 0.15 n/a n/a 0.17 0.46 0.59 0.42 0.39 1.37 0.27 0.52 0.51

1.48 0.40 3.22 0.23 n/a 0.42 n/a 0.86 n/a 0.22 0.73 0.89 0.14 n/a n/a 0.19 0.46 0.60 0.40 0.43 1.32 0.27 0.54 0.50

2002

2001

2001

2002

Electricity consumption per GDPb (kWh/US$95)

Electricity consumption per capitaa (kWh/person)

1.87 0.34 0.41

33

56

0 35

0 34

33

2

32 31

26 0 18

26 1 18

32 34

59

19 5 96 -

32

59

18 6 96 -

32

2002

4 n/a 3 4

4 n/a 3 3

n/a

12 6

12 7

n/a

36 0 1

18 n/a 72 -

18

2002

37 0 1

14 n/a 77 -

18

2001

Share of trade in electricityf (per cent)

26 7 15 28 3 13 7 7 12 26 17 4 6 18 22 10 24 16 6 12 3 7 19

7 6 12 28 16 4 6 20 32 12 24 12 6 12 3 9 19

2002

26 7 15 28 2 13

2001

(per cent)

Electricity lostg

d - The “Ratio of maximum demand to installed capacity” is calculated as the ratio of the aggregate maximum demand to the total installed capacity (table 2) for each country. e - The “Shared capacity of new and renewable energy” is calculated as the ratio of total capacity installed for renewable energy (table 3) to the total installed capacity for each country (table 2). f - The “Share of trade in electricity” is calculated as the ratio of total of exports and imports (table 7) to the total electricity generation for each country (table 4). g - The “Electricity lost” is calculated as the ratio of transmission and distribution losses (table 8) to the total electricity generation (table 4) for each country.

56

2001

0.41

66 53 85

79 70 94 64 85

80 67 104 63 81 65 56 85

75 80

72 82

65 76 22 n/a

2002

Shared capacity of new and renewable energye (per cent)

2

0.18 1.71 0.10 0.48 2.06 0.99 0.33 0.02 2.21 0.11 0.19

0.18 1.72 0.10 0.45 2.04 0.88 0.33 0.02

66 76 24 n/a

2001

Ratio of maximum demand to installed capacityd

1.44 2.12

0.66 0.03 0.20 2.56

0.69 0.03 0.18 2.33

0.11 0.17

1.00

2002

0.99

2001

Installed capacity per capitac (kWh/person)

a - The “Electricity consumption per capita” is calculated as the ratio of total consumption (table 7) to the population (table on page viii) of each country. b - The “Electricity consumption per GDP” is calculated as the ratio of the total consumption (table 7) to the GDP for each country (table on page viii). c - The “Installed capacity per capita” is calculated as the ratio of the total installed capacity (table 2) to the population (table on page viii).

Notes:

Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China Fiji Hong Kong, China India Iran (Islamic Republic of) Japan Macao, China Mongolia Myanmar New Zealand Pakistan Philippines Republic of Korea Russian Federation Singapore Thailand Turkey

Country or area

Table 14. Electricity indicators


35


Table 15. CO2 emissions from public electricity and heat production (2001) Country or Area

Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China Fiji

Hong Kong, China India Iran (Islamic Republic of)

Japan Macao, China Mongolia Myanmar New Zealand Pakistan

Philippines Republic of Korea Russian Federation Singapore Thailand Turkey Source: International Energy Agency, 2003.

36

CO2 emissions (million tons CO2) 2 204 14 10 n/a 2 n/a 1 349 n/a 22 516 72 333 n/a n/a 2 7 34 22 333 505 27 51 63

CO2 per capita (kg CO2 per capita) 402 10 481 1 682 73 n/a 5 722 n/a 1 061 n/a 3 311 500 1 109 2 616 n/a n/a 39 1 696 237 285 2 616 3 490 6 447 837 2 740


Country / Area information Armenia Currently, the energy sector of Armenia is one of the fully operational and cost-effective branches of the country’s economy. Armenia adequately covers its internal energy demand, exports electricity to Georgia, and successfully performs an electricity exchange with the Islamic Republic of Iran on a mutually beneficial basis. A number of reforms have been implemented and more are ongoing in the energy sector, ensuring the operation of an efficient and uninterrupted energy system. Reforms include the formulation of market relations, the development of legislation and tariff policy regulation, and the implementation of privatization procedures. The power sector of Armenia has passed through a difficult reformation and reconstruction over the last few years, though Armenia has made considerable progress in the transition to a market economy. As a result of power sector restructuring, five generation plants and the transmission and distribution systems have been separated. Dispatching and settlement centres have also been established. Armenian law required the privatization of the electricity distribution network in October 2002. Under the “property as a debt payment” scheme, a decision was made to give the Hrazdan thermal power plant to the Russian Federation, and the process of drawing up the necessary documents is under way. The Sevan-Hrazdan cascade hydroelectric power system was privatized in 2003. Between 1990 and 2000, almost all small hydropower plants and a number of energy infrastructure companies (construction, repairing, assembling, etc.) were privatized. The projects on rehabilitation and modernization of electricity transmission and distribution networks were successfully implemented and continue with the financial assistance of international organizations. There are a number of other completed projects that should be noted. These include the rehabilitation of the 220kV Vanadzor-2 and Kamo substations, the construction of Shinuhayr-Agarak, which is part of the Syunik-Center 220kV overhead power transmission line, and the Agarak switch-

gearing unit for the Iran-Armenia 220kV transmission line. The rehabilitation of the transmission and high voltage networks is also planned. The technical losses of the High Voltage Network CJSC have decreased by 0.56 per cent from 4.73 per cent for 2001-2002 to 4.17 per cent for 2002-2003. Losses from the low voltage network were around 21 per cent for 2001-2002, comprising 10 per cent technical losses and 11 per cent commercial losses. For 2002-2003, losses were around 18 per cent, incorporating approximately 9 per cent each for technical and commercial losses. The total reduction in losses over this period has been 2.57 per cent. A further reduction in losses has been noted for 2003.

Major challenges to the power sector Electricity in Armenia is produced by three thermal power stations, one nuclear, and two major hydroelectric plants, together with a number of small hydroelectric units. The thermal power plants have an established capacity of 1,756 MW. The nuclear power plant, constructed in 1979, has an installed capacity of 815 MW, though only one unit of 407.5 MW is currently in operation. Hydropower plants have an established capacity of 1,038 MW.

National Energy Plan Objectives The Government pays special attention to energy security and energy independence, which are necessary for the sustainable development of the country. The concept of ensuring a reasonable level of energy security for the country was taken as a basis for the energy sector’s development programme as well as several special programmes, specifically: maximum utilization of domestic energy resources for power generation; diversification policy; development of regional cooperation; and integrated electricity and gas transmission systems. On the basis of this, a strategic programme has been developed.

37


Renewable Energy Development Hydro energy The hydro potential of Armenia has been evaluated to be about 21.8 billion kWh/year, including 18.6 billion kWh from large and medium rivers and 3.2 billion kWh from small rivers. The economically feasible potential is about 3.3 to 3.5 billion kWh, with 1.5 billion kWh already utilized. Considering that the electricity production has been about 6 billion kWh during the last few years, utilization of hydro potential would satisfy 50 per cent of the current demand and not only avoid an energy crisis but also contribute to the development of the economy and increase the stability of improvements. Wind energy Armenia has considerable resources for wind energy. Theoretically the potential is estimated at 10.7 GWh and at least 1.1 GWh is economically proven according to existing data. Currently, a 2.6-MW wind farm project funded by a grant from the Government of the Islamic Republic of Iran (US$ 3.5 million) is being developed at the Pushkin pass. It is foreseen to develop the total capacity up to 20 MW. Solar energy Armenia is rich in solar energy resources, the utilization of which will reduce the need for imports of other energy sources. The average annual solar radiation is approximately 1,720 kWh/m2 (average annual European solar radiation is 1,000 kWh/m2). Over a quarter of the territory of the country has solar resources with the intensity of 1,850 kWh/m2. Solar radiation in the Sevan basin is substantial at 2,800 hours.

Biomass Biomass is not currently utilized as a modern energy resource in Armenia. However, an attempt has been made to attract foreign investment for the construction of a large biomass plant. If funding were available, it would be possible to construct a biomass plant within 12 to 15 years with a daily methane production of up to 100,000 m3.

Efficiency measures As part of the Strategic Plan for the energy sector, an energy efficiency policy is to be developed. This is likely to incorporate the state programme for restoring heat to the residential sector and the construction of new small combined cycle units.

Environmental impact of electricity generation The ecological aspects of the impact of thermal power plants will be considered, though hydropower plants and nuclear power plants are considered ecologically better sources of power generation by the Government of Armenia. During the period 2001-2002, the thermal power plants used only gas fuel. Therefore, the emissions of nitrogen dioxide were approximately 3,750 and 2,136 tons in 2001 and 2002, respectively.

Financial aspects Projects for the rehabilitation and modernization of electricity transmission and distribution networks as well as gas system rehabilitation and renovation have been successfully implemented and are being continued with the financial assistance of international organizations. The total investment during 2003 was 9.4 billion Armenian dram.

Azerbaijan The power sector, along with the oil and gas sector, has a leading role in the economy of Azerbaijan and is important to the development of the social infrastructure. Azerbaijan is fully electrified, and electrical power is the most utilized energy source for domestic and industrial use. The development of the power sector is considered a policy priority, and the State has always provided sufficient funds to maintain and construct the energy infrastructure. After political stabilization in Azerbaijan, investment opportunities in the power sector appeared, and foreign debts are now being repaid. 38

During 2001 and 2002, a total of almost US$ 224 million was invested in the Azerbaijan energy sector for developing further generating capacity and reconstructing existing infrastructure.

Power system components Azerbaijan power plants The Azerbaijan Power System is the oldest and most developed in southern Caucasus. It has an installed generating capacity of about 5,500 MW, to which thermal power stations contribute 4,700 MW and hydropower stations make up the rest.


Before the collapse of the Soviet Union, the Azerbaijan Power System was an integral part of the United Power System of Transcaucasia, which was connected with the United Power System of the Soviet Union. After the collapse, the Azerbaijan Power System was consequently separate from the other Transcaucasian republics, linked only with the northern Caucasus of the Russian Federation. Currently, 80 per cent of Azerbaijan’s generating power is located in its western part. However, 70 per cent of the power consumption is massed in the east, north-east and south-east. Therefore, fuel is transported hundreds of kilometres from the Absheron Peninsula to the basic thermal power stations, Azerbaijan GRES and Ali Bayramli GRES. The energy produced is then transmitted to the Absheron Peninsula and from there is distributed to the northern and southern regions. As the west and east of Azerbaijan are connected by two transmission lines of 500 kV (one of which is energized at 330 kV), huge transmission losses take place. Though the installed design capacity of Azerbaijan Power System is approximately 5,500 MW, only about 4,300 MW is available. The main reason for the decrease is the ageing of the infrastructure, the deficiency of spare parts and the lack of scheduled maintenance. More than 35 per cent of Azerenerji power stations have been operating for more than 30 years. Electrical networks The power system incorporates electric transmission and distribution networks with a voltage of 0.4-500 kV. The total extent of transmission lines is more than 110,000 kilometres. The substations of step-down transformers have a total capacity of more than 13,500 MVA. The Azerbaijan Power System has transmission lines with a voltage of 330 kV for linking with the United Power System of the Russian Federation and the Power System of Georgia. Transmission lines of 230 kV are used for the link with the Islamic Republic of Iran, through which the import and export of electricity is carried out. Sector management The management of electrical power in Azerbaijan is now implemented by a single agency the Azerenerji JSC. The management of the distribution of electrical power is divided between two large privatized companies: Electric System of Barmek-Azerbaijan and Management Center Bayva. All power stations are operated under the authority of the Azerenerji JSC, except for several

small hydropower stations, and the transmission lines and nodal substations that are the components of the transmission system. The components of the transmission systems owned by the Azerenerji JSC include all transmission lines and substations with a voltage of 500, 330 and 220 kV, and 119 lines and 28 substations with a voltage of 110 kV (the total length of the lines is about 2,300 km). The matched operation of the power system is ensured by a dispatching centre that is managed by the Azerenerji JSC.

Generation and consumption of electrical energy The establishment of a high-capacity energy system enables economic development and the improvement of people’s living standards. The total industrial production in Azerbaijan during the 1970s and 1980s has steadily increased. The total volume of industrial output had increased by 220 per cent by 1980 and 314 per cent by 1990, compared with the 1970 industrial output. In response to this growing demand for electrical and heat energy, electrical generation was increased by 139 per cent by 1980 and 193 per cent by 1990. Heat energy generation was also increased by 177 per cent and 180 per cent by 1980 and 1990, respectively. Oil extraction and oil processing industries were the main electricity consumers in Azerbaijan for a long period of time. However, consumption by other industries, such as metallurgy, engineering and metal processing, chemical, electrical engineering, light, food and building material industries, started to increase significantly during the 1970s. At the same time, an increase in the generation of electricity in the country was required due to the electrification of the rail system, extensive implementation of electrical transport facilities in the cities of Baku, Ganja, Soumgayit and Mingechevir and the electrification of villages and rural communities.

Reforms in Azerbaijan’s energy sector Intensive reforms have been carried out, the purpose of which is to improve the efficiency of the energy sector, to decrease the number of receivables and to intensify the attraction of investment in the sector. Two new companies, Barmek-Azerbaijan Network LLC and Bayva-Enerji Management Centre LLC, were established in the Azerbaijan Energy Sector along with the Azerenerji JSC.

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Reforms have strongly affected the composition of electricity customers. Electricity sold directly to individual customers by the Azerenerji JSC totalled 66 per cent of the energy generated in 2000. This

figure increased by 4.5 per cent in 2001 and 4.6 per cent in 2003. Currently Azerenerji JSC sells electric energy directly to customers only in the Nakhchivan Autonomous Republic.

Bangladesh The Government of Bangladesh has accorded the highest priority to the power sector in view of its importance in the overall development of the country. The Government envisions providing the entire population with electricity by 2020. A number of reform measures have been taken to encourage private and joint venture investments for this capitalintensive sector and to ensure transparency and accountability as well as to create competition. Utilities have become more active in order to improve their performance. As a result, significant progress has been achieved in this sector. If this trend continues, the power sector will be able to reach its goal.

Major achievements Development of the power sector in 2001 and 2002 During financial years 2001 and 2002, electricity generation increased and new transmission and distribution lines were constructed. As a result, the extent of load shedding has been reduced. During this period the total number of consumers increased to about 1.7 million, including 13,000 irrigation consumers. Moreover, about 7,600 new villages have been electrified. All of these improvements have had a positive impact on the development of Bangladesh’s agro-based economy. Electricity sales have increased by 24.6 per cent in the last two years, amounting to 2,489 million units. System losses have come down from 31.62 per cent to 27.97 per cent. Maximum demand has increased by 583 MW. Revenue has also increased by 2,385.2 million taka during the last two years, which has resulted in financial improvement for the utilities.

The power sector reform started in 1977 through the creation of the Rural Electrification Board (REB) to augment the Rural Electrification Programme. As a continuation of the reform, the Dhaka Electric Supply Authority (DESA) was created in 1991, and the industrial policy was amended in 1992 to allow private sector participation in power generation. In 1995 the Government approved the National Energy Policy, which contained a recommendation to unbundle the power sector and establish an energy regulatory commission. The Government has embarked on some reform programmes consistent with the approved policy to enhance overall efficiency and to attract private capital in this sector. These programmes have resulted in a number of achievements: • • • •

•

•

Major challenges To meet the increasing electricity demand, a huge investment is required. Owing to funding constraints, the timely construction of new power plants and maintenance of the existing power plants are not possible. Power sector reforms To overcome this problem, the Government has taken a number of reform initiatives.

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• •

The Private Sector Power Generation Policy of Bangladesh was approved in 1996 to generate and sell power in the private sector; The Government has approved the “Vision Statement and Policy Statement on Power Sector Reform”; The Government has approved the Policy Guidelines for Small Power Plants in the Private Sector to develop power plants; The second largest power station belonging to the Bangladesh Power Development Board (BPDB), Ashugonj power station, has been incorporated; Steps have been taken to build three power plants at Serajgonj, Bheramara and Meghnaghat, each having a capacity of 450 MW; The Power Grid Company of Bangladesh Limited (PGCB) has been established under BPDB’s ownership. PGCB has already taken over 100 per cent of transmission and other assets from BPDB; The Dhaka Electric Supply Company Limited was established under DESA; Steps have been taken to extend the electrification system to people in remote areas of the country under the Remote Area Power Supply System and a feasibility study will be conducted;


•

•

•

•

•

Strategic business unit (SBU) activities have been adopted in 47 distribution divisions under BPDB and DESA. Owing to the SBU programme, system loss has been reduced and revenue has increased considerably; As part of the reforms and restructuring, the West Zone Power Distribution Company has been established and is now functioning under the Companies Act of 1994; Programmes have been initiated to introduce a pre-paid metering system in Chittagong and Sylhet under BPDB and in the Lalbag area under DESA to improve the revenue collection; A tariff study has been undertaken and is currently being reviewed by the Government. As an interim measure, the tariff is being adjusted biannually on the basis of changes in gas prices and fluctuations in the foreign exchange rate; The Energy Regulatory Commission Act was passed by Parliament on 10 March 2003. This Act will regulate the electricity, gas and petroleum sector.

National energy plan As a result of the reform measures taken by the Government, the power sector has made a remarkable improvement. In order to meet the increasing demand for electricity it is imperative to continue the current trend. With this objective, the Government has produced mid-term (up to 2007) and long-term (up to 2012) development plans. By 2012, the Government plans to have increased the installed capacity by 5,130 MW, installed 5,422 kilometres of transmission lines and over 120,000 kilometres of distribution lines, electrified more than 21,500 villages and increased the population’s access to electricity by 33 per cent.

Renewable energy Steps have been taken to produce electricity from the solid waste of the Dhaka Municipality Corporation. A consultant has been engaged to design a power station, conduct a feasibility study, prepare a draft of the security package document and assist in the selection of a sponsor. A draft renewable energy policy has been prepared and is in the process of approval by the Government. Further to this, the Government is seriously considering electricity generation by renewable energy sources such as wind, solar, biomass, biogas, mini-hydro and solid waste.

Stand-alone electricity supply for rural electrification BPDB has already initiated efforts for the development of renewable energy and the implementation of energy efficiency measures. Under the Hill Tracts Electrification Project, over 300 photovoltaic (PV) panels have been installed in Juraichori. In addition, in the second and third phases, Bilaichori and Barkal will each have 300 PV panels installed. Under the Rural Electrification Programme of REB, 2,200 residential and small commercial shops in remote areas without the possibility of accommodating grid facilities shall receive solar energy through the installation of solar home systems.

Demand-side management Keeping generation availability at the highest level in the supply-side and managing unproductive demand by end users are the best ways to alleviate the load shedding of power in Bangladesh. To keep load shedding at a minimum, BPDB has taken a number of steps under a demand-side management programme. These include encouraging irrigation during off-peak hours, enhancing consumer awareness of electricity conservation during peak hours and undertaking a demand-side management programme that encourages the use of energy-efficient equipment. Further initiatives include requesting industries and commercial customers to use their own captive generation and not to operate during peak hours, whenever possible, encouraging commercial establishments to operate only during daylight hours and forming crisis management committees to face emergencies and implement demand-side management measures in their area.

Environmental impact Development of the electrical power sector is based on sustainable, environmentally friendly and cost-effective methods. Environmental impact assessments are mandatory for any new project in both the private and public sectors. At the planning stage all new projects conform to the required limits, codes, guidelines and environmental standards. As about 90 per cent of power generation is from indigenous natural gas, the emissions from generating plants are much lower than facilities utilizing other fuels.

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Financial aspects During 2001 and 2002, Bangladesh received funding from a number of sources, such as the Asian Development Bank, the German KfW fund and the United Kingdom DFID. Funding included

US$ 195.6 million for a power sector development programme, 7.5 million euros for expansion of renewable energy technologies, 50 million pounds sterling for the intensification and expansion of the distribution system, and 40.2 million euros for the Dhaka North Power Project.

China Major achievements China is the third largest energy producer in the world, behind the United States and the Russian Federation, accounting for around 9.5 per cent of the world’s annual total energy production. It is also the world’s second largest energy consumer, behind the United States, and accounts for around 10 per cent of total global annual energy consumption. China’s electricity production is expected to climb at a rate of 4.4 per cent per year up to 2030. The expanding economy has not only raised the population’s standard of living but has also created the need for a better overall infrastructure capable of supporting continued economic growth. China has been very successful in developing its power infrastructure owing to structural reforms that have opened up new capital sources to supplement government funding and made possible a high rate of domestic savings. In 2002, the Government took a major step in restructuring the country’s electricity sector by dissolving the State Power Corporation, which formerly owned 50 per cent of the power generation infrastructure and managed almost the entire power grid. The purpose of the restructuring was to separate power generation from the transmission system so that generators could compete against each other to sell their electricity. China began opening its electricity generating infrastructure to outside investment during the 1980s and initiated reforms that encouraged the formation of power generation companies.

Major challenges It remains an important challenge for China to introduce effective competition among power generators, all of which are State-owned, with fastgrowing demand, a limited surplus generating capacity, a poorly interconnected power transmission grid system and lack of experience in power sector regulation. Owing to the large increase in economic growth and the subsequent consumption, China has

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suffered more recently from power supply shortages in some provinces. A number of environmental problems have also arisen due to this increase in consumption and the reliance on coal for electric power generation.

Energy sector targets and goals The Government plans to continue increasing the total installed power generating capacity, which could reach around 500,000 MW by 2010. Fossil fuels are the primary fuel supply for electricity generation. However, the tenth Five-year Plan aims to increase the share of renewable energy sources to 31 per cent from the current 26 per cent. One of China’s targets is to create a unified national power grid by 2020 and have a modern power market in which plants sell power to the grid at market-determined rates. As part of this goal, the Government has embarked on a project designed to bring electricity from hydroelectric plants and coal-rich provinces in the west to power-starved provinces in the east. One of the main priorities for the future includes developing and utilizing technologies to solve the major environmental challenges currently faced. A number of policies are also being considered, such as adopting the “polluter pays” principle, allowing for accumulation of funds for pollution abatement, ensuring that fees charged for pollution are higher than the abatement costs and strengthening environmental laws. Future initiatives may also include restructuring the tax system to benefit environmental protection, and granting preferential loans and subsidies to enterprises that construct and operate pollution treatment facilities or produce environmentally friendly products.

Renewable energy China has possibly the largest hydroelectric resource in the world, a large portion of which is located in the remote southwestern part of the country. Slightly less than 20 per cent of China’s electricity is currently generated from hydroelectric power. However, under the tenth Five-year Plan, the


Government aims to increase hydroelectric production. There are large wind energy resources in the northern and eastern parts of the country and the Government plans to increase the use of this resource by 2010. China is also gifted with significant potential for geothermal energy, though it is not greatly utilized at the moment. Currently, most geothermal energy in China has been used for space heating, agriculture, aquaculture, bathing and clothes dyeing. Incentives such as tax breaks and subsidies have been created to encourage solar power development in China. This has resulted in the installation of more than 25,000 photovoltaic power systems, almost all of which are small off-grid systems. In addition, China utilizes some refuse-fuel and wave power, though these are not likely to play a significant role in meeting the future energy needs of the country. The Government believes that there is considerable potential for utilizing coal-bed methane reserves.

Efficiency measures In June 2002 the Cleaner Production Promotion Law was passed, establishing demonstration programmes for pollution remediation in 10 major Chinese cities, and designating several river valleys as priority areas. Efforts by the Government to conserve energy and the adoption of more modern industrial equipment have resulted in an overall reduction in the energy intensity of the country. Further efforts have included a reduction in coal and petroleum subsidies and a move towards less energy-intensive services and higher value-added products. However, the overall consumption of energy and resulting carbon emissions are substantial because of the country’s large population and heavy coal use.

Environmental impact The historical dependence upon coal for power generation has contributed to a number of pollution problems, including the deterioration of air and water quality and damaging human health. For example, the power sector contributes approximately 44 per cent of total sulphur dioxide emissions of the country, and 44 per cent of total carbon dioxide emissions, which are likely to increase to around 55 per cent by 2030.

In an effort to reduce the amount of pollution, the country is proposing to increase the amount of cleaner and renewable technologies for power generation, as well as reducing emissions from industrial boilers and motors. China is currently responsible for slightly more than one-eighth of the world’s fossil fuel-based carbon emissions, ranking it second, behind the United States. Though the country has ratified the Kyoto Protocol, it is one of the Non-Annex I Parties, which means that it is not obliged to commit to reductions in greenhouse gas emissions. In addition to the Cleaner Production Promotion Law and related programmes, efforts to offset coal consumption have also included the development of natural gas and coal-bed methane infrastructure, increasing the number of combined heat and power plants, adding approximately 3,000 MW of hydropower annually and developing renewable energy resources such as wind and photovoltaics for electricity generation.

Financial aspects China’s investment requirements in electricity infrastructure over the next three decades will amount to nearly US$ 2 trillion, of which more than US$ 1 trillion will be for transmission and distribution. The contribution from new investors has meant that the central Government’s share of financing declined from 100 per cent to 45 per cent in the second half of the 1990s. However, private investment still amounts to less than a fifth of the total, with government funding sources contributing 64 per cent to the total. Coupled with the reforms were abundant domestic savings, amounting to around 40 per cent of GDP. These savings were also instrumental in enabling the power sector reforms.

Stakeholders The responsibilities of the Chinese energy sector are primarily managed by the Energy Bureau within the National Development and Reform Commission (NDRC). The NDRC was established on the basis of the former State Development Planning Commission (SDPC), which absorbed part of the abolished State Economic and Trade Commission and State Council’s Office for Restructuring the Economic System. Other important stakeholders include the following: •

State General Bureau for Environmental Protection, which enforces environmental standards; 43


•

Ministry of Foreign Trade and Economic Cooperation, which evaluates projects involving foreign investment;

•

State Electricity Regulatory Commission (SERC), which is responsible for regulating and managing market competition in the electricity industry and issues licences to power operators.

India Major achievements

Targets and goals

In 2003, India passed the Electricity Act, which was a key step in developing the Indian energy sector to reform pricing and introduce more marketbased mechanisms. It seeks to establish measures conducive to the development of a competitive electricity market, to protect consumer interests and to supply electricity to all areas. The private sector has reacted positively to opportunities created under the Electricity Act.

India is currently the sixth largest energy consumer in the world and is planning major infrastructure investments to meet the rising electricity demand. Currently, 80 per cent of India’s electricity is generated by coal and hydropower facilities, though the Government plans to increase the capacity by 100,000 MW by 2012. This will include increasing the use of hydropower, gasbased electricity generation and renewable energy.

A number of steps have been taken to reform the electricity market, including privatizing distribution companies in New Delhi and signing an agreement with 22 states with respect to the payment of current and outstanding electricity bills.

In 2001, the Government resolved that all villages should be electrified by 2007, with all households electrified by 2012. As part of the tenth Plan, the Government has proposed to connect 62,000 villages to the grid, with a further 18,000 remote villages to be electrified through nonconventional sources.

The Power Trading Corporation has also been established and power trading has commenced between surplus and deficit regions.

Major challenges Electricity generation in India is projected to increase at a rate of 4.4 per cent per year until 2030. The electricity sector faces a significant challenge in meeting the increasing demand. Inadequate reserve margins and the poor performance of the transmission and distribution system cause frequent blackouts and brownouts. Generating units are old, low-quality coal is used and defective equipment and insufficient maintenance exacerbate problems with generation capacity. India’s state electricity boards suffer from high operating costs and pricing policies that keep consumer tariffs far below the cost of supply. This has contributed to discouraging further investment in the sector. Pricing reforms will help improve the financial health of the electricity sector, but reducing the cost of the electricity supplied is also important. The high cost of electricity can be attributed to high transmission and distribution losses, theft, the high cost of coal, the low efficiency of power plants and high administrative costs.

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Renewable energy India has a separate Ministry for Nonconventional Energy Sources and has an extensive programme to promote the use of solar energy. Solar power, particularly in remote areas, is considered a better and less expensive option than constructing new generating facilities or connecting remote areas to the main grid. The Government is also considering largescale hydroelectric plants to meet its future energy needs and has set ambitious targets to further utilize this resource. Rich in wind power potential, India has been installing wind turbines at an impressive rate. It is expected to exceed its target of 1,500 MW of wind power in the period 2002-2007.

Stand-alone electricity supply The poor reliability of the supply, which does not often meet demand, has led to many industrial facilities investing in small on-site generators. About 10 per cent of India’s electricity generation now comes from these facilities. Despite the high level of urbanization, more than 70 per cent of India’s population still lives in


rural areas. As mentioned previously, the Government plans to fully electrify India by 2012. This will include providing electricity to remote villages utilizing renewable energy sources.

Efficiency measures In 2002, the Energy Conservation Act of October 2001 came into effect. The aim of this Act is to encourage energy efficiency and energy conservation. The Bureau of Energy Efficiency is responsible for coordinating the implementation of this Act.

Environmental impact India’s carbon emissions are continuing to grow with the country’s increasing energy consumption. Although the Government recognizes the importance of reducing these emissions, the importance of economic growth to the country means that carbon emissions will likely be projected to continue rising. India’s economic policies, such as high import tariffs on high-quality coal and subsidies on lowquality coal, have also led to the increased use of low-quality coal. Power facilities are inefficient and not generally fitted with pollution control equipment and therefore emit large quantities of other air pollutants. The Government has introduced some initiatives to discourage firms from using older, inefficient coal-fired facilities, and has used other financial incentives to encourage the installation of pollution abatement equipment, such as customs

waivers and soft loans. Other pollution abatement mechanisms being considered are user charges, deposit refund systems, marketable permits and taxes. The Government is also investigating the development of environmental standards for products and processes, requiring environmental impact statements in certain areas, and undertaking environmental auditing.

Financial aspects India’s electricity demand will increase more than threefold over the next 30 years, and the country will need to invest approximately US$ 665 billion in the power sector to meet the demand. However, the power sector is currently suffering financially, and the availability of the necessary financing is uncertain. The power sector is funded mainly through budgetary support and external borrowing. Previously, the power sector received between 15 and 20 per cent of the total budget. However, this share has declined in recent years on the assumption that some of the required funding will come from the private sector.

Stakeholders • • • • •

Central Electricity Regulatory Commission http://www.cercind.org/ Central Electricity Authority http://www.cea.nic.in Bureau of Energy Efficiency Ministry of Non-Conventional Energy Sources http://mnes.nic.in/ Ministry of Power http://powermin.nic.in/welcome

Japan Major achievements and challenges Japan is currently facing many challenges, such as reducing greenhouse gas emissions and deregulating the electricity retailing sector. At the third Conference of the Parties to the United Nations Framework Convention on Climate Change held in Kyoto in December 1997, the Government agreed to cut greenhouse gas emissions to 6 per cent below 1990 levels by the period from 2008 to 2012. Japan ratified the Kyoto Protocol in June 2002. In line with this pledge, the Government announced its Long-Term Energy Supply and Demand Outlook in June 1998 and the revised the Outlook in July 2001.

Future energy demand in the industrial sector is expected to rise marginally, while the energy demand growth for households and transportation is likely to remain relatively high. The Energy Savings Law of 1999 calls on the central Government and local governments to offer effective economic incentives to promote the wider use of environmentally friendly products and technologies, including solar cells and loweremission and multi-fuel vehicles. On the supply side, the Government expects to build 20 new nuclear power plants by 2010. However, potential locations for nuclear power plants are difficult to find because of strong public opposition after a recent series of incidents and accidents at nuclear facilities. It is also expected 45


that coal will be presented as a fuel of lower priority, especially when compared with less-polluting fossil fuels, such as liquefied natural gas (LNG). In December 1996, the Government announced its economic restructuring pledge, which includes lowering the energy (electricity and gas), transportation and telecommunications costs to internationally competitive levels by 2001. For the structural reform of the power industry, many issues need to be considered, including universal service, long-term energy security and environmental protection. After the Electricity Utilities Law was amended, retailing to large, extra-high tension business customers was liberalized in March 2000, accounting for 26 per cent of the entire electricity market. Deregulation will be expanded by April 2005 to midsize factories and supermarkets (high-tension customers), accounting for 37 per cent of the market. Discussions will start by April 2007 on liberalizing low-tension customers, such as households and small stores, which make up 37 per cent of the electricity market. The Electricity Utilities Law was amended in 2003 to facilitate this strategy.

National energy plan

Self-sufficiency and fuel diversification Since the two oil crises of the 1970s, nuclear, coal and LNG power technologies have been the preferred alternatives to oil-fired power plants. The Government considers it very important to have the best mix of these various technologies, taking into account fuel security, economy and environmental characteristics. Fossil fuels still account for around 80 per cent of Japan’s energy consumption. Japan maintains a strong commitment to the use of nuclear power in addition to the reprocessing of spent nuclear fuel and the use of plutonium as fuel for fast breeder reactors. The mixed plutonium and uranium oxide fuel programme is seen as the sole option for light water reactors. In addition to nuclear power, Japan is looking to increase its share of wind, hydro and other carbon-free, non-polluting renewable energy sources.

Renewable energy By 2010, the Government has set a goal to have an installed capacity of 4,820 MW of solar power, 3,000 MW of wind power, a 4,170 MW capacity to burn waste, and a 330 MW capacity to burn biomass.

Targets and goals Environment Japan has seen numerous advances in environmental protection over the past four decades.

In addition, the development of 2,100 MW of fuel cell capacity will be set as a demand-side measure.

With the rapid economic growth of the 1960s, the public became more aware of environmental conservation and pollution issues. The Government and industry are still wrestling with these problems.

Demand side management The Government identifies load levelling or demand-side management as a key measure for electricity supply cost reduction. It is estimated that Japan’s 10 major electric power companies (EPCos) could cut their total costs by approximately 1 per cent if they improve the annual load factor by 1 per cent. Load levelling is also expected to be an effective measure for reducing carbon dioxide emissions, as it decreases the usage of power generated by oil-fired facilities during the day and increases the usage of electricity generated by nuclear or hydropower plants at night.

The oil shocks of the 1970s forced Japan to streamline heavy industrial production and to reorient its economy toward less energy intensiveindustries. Today, Japan is one of the leading countries in the development and implementation of pollution control and energy efficiency technologies. Japan committed itself to reducing its total carbon emissions under the 1997 Kyoto Protocol. In Japan, one fourth of carbon dioxide emissions come from power-generating activities. Therefore, it is very important to change the composition of power sources and to reduce power consumption. Carbon dioxide emissions in the generating sector have to be cut by 9 per cent from the 1999 level of 76 million tons to 69 million tons by 2010.

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Efficiency measures

Thermal efficiency The average efficiency of the thermal power plants of nine EPCos was greatly improved from 18.9 per cent in 1951, when the framework for the current electric supply industry was established. After levelling to about 38 per cent, the efficiency has been gradually improving to 40 per cent because of the commissioning of many LNG combined-cycle plants with higher efficiencies.


Combined heat and power According to the Long-Term Energy Demand and Supply Outlook, combined heat and power using natural gas will be increased from 1,520 MW in 1999 to 4,640 MW in 2010.

Environmental impact The Environmental Impact Assessment Law took effect in June 1999. Under the new system, an environmental impact assessment is required by law rather than being suggested under administrative guidance. Environmental impact assessments undertaken for new power plants are now governed by this law as well as the Electricity Utilities Law.

Financial aspects Japan has a long history of private sector involvement in electricity supply. More than 90 per cent of the generating facilities are owned and operated by the private sector.

Stakeholders Government of Japan • Ministry of Economy, Trade and Industry (METI) http://www.meti.go.jp/ • Natural Resources and Energy Agency of METI http://www.enecho.meti.go.jp/ • Ministry of Environmental Affairs http://www.env.gov.jp/en/index.html Regional vertically integrated electric utilities (10 EPCos) • Hokkaido EPCo http://www.hepco.co.jp/ • Tohoku EPCo http://www.tohoku-epco.co.jp/ • Tokyo EPCo http://www.tepco.co.jp/

•

Hokuriku EPCo http://www.rikuden.co.jp/ • Chubu EPCo http://www.chuden.co.jp/ • Kansai EPCo http://www.kepco.co.jp/ • Chugoku EPCo http://www.energia.co.jp/ • Shikoku EPCo http://www.yonden.co.jp/ • Kyushu EPCo http://www.kyuden.co.jp/ • Okinawa EPCo http://www.okiden.co.jp/ • Federation of Electric Power Companies http://www.fepc.or.jp/english/ Major Wholesalers • Electric Power Development Co http://www.epdc.co.jp/ • The Japan Atomic Power Co http://www.japc.co.jp/

Additional information • • • • • •

Federation of Electric Power Companies, Japan http://www.fepc.or.jp/english/ Electricity Review Japan http://www.fepc.or.jp/erj/index-e.html Energy and the Environment http://www.fepc.or.jp/english/info/ energyandenv/front.html New Energy Foundation http://www.nef.or.jp/english/nrej2001/pdf/ part01-01.pdf International Energy Agency (IEA) http://www.iea.org/pubs/newslett/eneeff/ table.htm United Nations Framework Convention on Climate Change (UNFCCC) http://unfccc.int/resource/natcom/ nctable.html#a1

Macao, China Stakeholders Government Organization Secretary for Transport & Public Works Rua de S. Lourenço Edf. dos Secretçrios-Adjuntos MACAO Telephone: (853) 565-555 Web site: http://www.macau.gov.mo Electric Power Company Companhia de Electricidade de Macau Estrada D. Maria II Edf. CEM

MACAO Telephone: (853) 339-933 Fax: (853) 308-361 Web site: http://www.cem-macau.com Independent Power Producer Gabinete da Central de Incineraçço e da Estaçço de Tratamento de çguas Residuais Estrada Ponte Pac On Taipa, MACAO Telephone: (853) 850-039

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Mongolia Major achievements With the adoption of a new Energy Law by Parliament in 2001, the legal base for restructuring the energy sector in Mongolia was established. The Government of Mongolia has taken steps to enable independent regulatory mechanisms to promote private sector involvement, in an effort to produce a competitive environment in the energy market. The establishment of the Energy Regulatory Authority was an important step towards creating an independent regulatory mechanism by enabling an institutional environment for foreign and domestic private investors to enter the energy market. The Parliament also adopted the Mongolia Integrated Power System (MIPS) programme in 2002, which aims to contribute to improving energy access, create a reliable electricity supply system and help reduce operational expenses towards creating favourable socioeconomic conditions for regional development. In 2002, the Government of Mongolia approved the Mongolia Sustainable Energy Sector Development Strategy Plan (2002-2010), which reflects goals reinforced in the Poverty Reduction Growth Facility. The main objective of the energy sector strategy of Mongolia is to create a financially sustainable energy sector that will provide costeffective energy access, thereby reducing poverty and enabling greater private sector and civil society participation. Mongolia’s energy sector should be developed within a regional energy context, while at the same time taking advantage of new technologies and sources of energy that might further promote economic efficiency and environmental sustainability.

Major challenges The Durgun hydropower plant has been included in the Government Action Plan, and in 2001 an agreement was signed between Energy Authority and Shanghai SFECO Group of China to begin construction. The installed capacity of the Durgun plant will be 12 MW, and US$ 26.5 million will be required to finance this turnkey project. The Taishir hydropower plant has also been included in the Government Action Plan. With a planned capacity of 8 MW, it will cost US$ 39.8 million. Development of the Taishir plant will help to improve the power supply for two remote aimags or provinces, Gobi-Altai and Zavkhan. The proposed project is planned to be implemented jointly by the Government of Mongolia, the Kuwait Fund for Arab 48

Economic Development and the Abu Dhabi Fund for Arab Economic Development. As of 1 June 2003, 156 soum or district centres were connected to the power grid in addition to the current aimag centres from 314 soum centres. The Government of Mongolia had set an agenda to connect 40 soums to the central grid between 2000 and 2004. From 2000 to 2003, a total of 33 soums were connected to the grid by 10, 35, and 110kV lines. Construction of overhead lines for a further 15 soum centres has also begun.

National energy plan In the immediate future, the government of Mongolia faces major challenges, such as an assurance of financial sustainability of the energy sector, strengthening of institutional framework for greater private sector participation, developing rural energy access and dealing with affordability issues. Financial sustainability of the energy sector In order to improve the financial performance of the energy sector in Mongolia, it is vital to resolve inter-company arrears. Although the reasons for increasing inter-company arrears are complex and interdependent, the government of Mongolia has taken many actions to reduce these arrears. Rural energy access and affordability In order to facilitate regional development and improve socioeconomic conditions, the Government of Mongolia has consistently developed the concept of regional development and related projects, such as the MIPS project and projects in telecommunications. As the energy sector in Mongolia is transformed into a more market-oriented entity, it is necessary to mitigate the social impact. Under the energy strategy, market assessments in central and off-grid areas are needed for various reasons, such as to introduce lifeline tariffs, to improve subsidy mechanisms, to increase the efficiency of the electricity and heat supply, and to improve the efficiency of heat-only boilers. As the Government searches for appropriate ways to provide isolated and remote areas with access to electricity, one possibility is to seek resources from climate change funds, such as the Global Environment Facility and the Prototype Carbon Fund. The expertise of the World Bank could also be useful in acquiring financing from these funds.


Further restructuring and private sector participation In order to increase private sector participation in the energy sector, it is important to transform the market with appropriate rules and regulations to increase the flow of energy and cash. To improve power and payment settlements between power companies, new power-exchange rules and regulations need to be introduced. The Government of Mongolia has taken important steps to accelerate economic growth, to reduce poverty, to increase private sector participation, to strengthen civil society and to create the institutional environment for greater private sector participation. During the last year, the Government has restructured the energy sector to conform to a market economy with a view to facilitating increased private sector participation, commercializing energy sector enterprises and commencing the privatization of other State enterprises.

Stakeholders Ministry of Infrastructure http://www.mid.pmis.gov.mn The Ministry of Infrastructure is responsible for energy sector policy-making, including energy resource development, import and export of energy, power infrastructure construction, energy conservation, renewable energy, rules and regulations and international cooperation. Ministry of Finance and Economics http://www.mofe.pmis.gov.mn The Ministry of Finance and Economics is responsible for socioeconomic development policy, sustainable development strategy, economic security, economic conditions, regulation, investment credit and aid integrated policy, balance of payments, and economic cooperation policies. Fuel and Energy Authority http://www.energy.mn The Fuel and Energy Authority serves as a government agency in charge of implementing international projects and loans. It carries out procurement services for energy sector enterprises based on their requests. It also implements investment projects financed under the State budget.

Energy Regulatory Authority The Energy Regulatory Authority is in charge of regulating energy production, transmission, distribution, supply and dispatch according to the Energy Law. This includes issuing licences to operators and monitoring the tariffs charged by them. Energy Corporation The Energy Corporation includes representatives of the Ministry of Infrastructure, the Ministry of Education and other government agencies, and was established as a research institute to conduct long-term planning for the energy sector. Currently, it focuses on design and engineering work for energy-sector entities rather than long-term planning. Renewable Energy Corporation As with the Energy Corporation, the Renewable Energy Corporation was established as a scientific organization aimed at increasing the use of renewable energy sources and conducting research for the Government. It now focuses primarily on commercial activities. Corporatized energy entities The energy sector has been unbundled into 18 distinct generating, dispatching, transmission and distribution companies. Currently, all of these companies are State-owned and are assuming responsibility for the financing and operation of their businesses. National Dispatch Centre The National Dispatch Centre (NDC) organizes the implementation of energy projects based on short- and long-term policies and needs, and develops contingency plans for the sector. NDC is also responsible for providing technical and methodological assistance for local authorities and other organizations. Energy Training Centre The Energy Training Centre provides shortterm technical (non-professional) training for energy sector personnel.

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Pakistan Major achievements Pakistan has undergone some reforms in the electricity sector, though there have been difficulties with privatization. The total power generating capacity has increased rapidly in recent years with the assistance of foreign investment. To some extent, this has led to the alleviation of power shortages experienced by the country. However, rotating power shortages, or load shedding, are still necessary in some areas. As part of the reform process, 14 public limited companies have been formed: four thermal power generating companies, one national transmission and power dispatch company and nine distribution companies. Independent power producers, funded partially by foreign investors and partially by the Water and Power Development Authority, have in recent years contributed to growth in power generation. Plans are also under way to expand Pakistan’s hydropower capacity with the approval for construction of four new hydropower plants, which will generate several hundred megawatts of additional power.

Major challenges The electricity sector is currently experiencing significant losses due to poor transmission infrastructure and power theft. Hydropower facilities are also affected by periodic drought, which can limit power supply. The power sector is expected to grow significantly in the future as a large portion of Pakistan’s rural areas have yet to receive power and only around half the population is connected to the grid. Pakistan aims to privatize its power services, though there have been some difficulties.

Renewable energy Hydroelectric power is the dominant renewable energy resource, generating around 30 per cent of all electricity in the country with a number of new sites being planned. Significant hydropower potential exists in the north of the country, though difficulties in transmission and lack of access limit the likelihood of these resources being utilized.

electricity in the near future. In particular, solarpowered water pumps are being used to address the water needs of people in rural areas. The Government is hoping that solar power will reduce reliance on firewood and other biomass sources, which constitute about one-third of all energy consumed.

Environmental impact Pakistan’s energy consumption has nearly tripled in the last 20 years, though it still accounts for less than 0.5 per cent of the world’s energy consumption. Electricity losses and theft and a lack of energy efficiency standards have contributed to a high energy intensity and subsequent carbon dioxide emissions from Pakistan. In an attempt to address some of the country’s environmental problems, the National Conservation Strategy Report was issued stipulating goals of natural resource conservation, promotion of sustainable development and improving resource use efficiency. A number of programmes were implemented, including energy efficiency improvements, renewable resource development and deployment, and integration of population and environmental programmes. Pakistan is not a signatory to the Kyoto Protocol as the Government feels that the country needs to be free of emission ceilings in order to develop its economy. Unfortunately, Pakistan currently has limited resources to address environmental concerns.

Stakeholders • • • • • • •

Stand-alone electricity supply Pakistan is turning to solar power to provide electricity for rural areas that are not likely to see

50

•

Water and Power Development Authority (WAPDA, http://www.pakwapda.com/) Karachi Electricity Supply Corporation – State-owned utility serving only Karachi and surrounding areas National Electric Power Regulatory Authority – determines electricity rates for the sector Hub Power Company – private power company Kot Addu power company – private power company Ministry of Industries and Production Southern Generation Power Company Limited (GENCO-1) headquarters at Jamshoro district Dadu near Hyderabad Sindh Central Power Generation Company Limited (GENCO-2) headquarters at Guddu district Jacobabad Sindh


• • • •

Northern Power Generation Company Limited (GENCO-3) headquarters at TPS Muzaffargarh district Muzaffargarh Punjab Lakhra Power Generation Company Limited (GENCO-3) headquarters at WAPDA House, Lahore National Transmission and Power Dispatch Company Lahore Electric Supply Company

• • • • • • • •

Gujranwala Electric Power Company Faisalabad Electric Supply Company Islamabad Electric Supply Company Multan Electric Power Company Peshawar Electric Power Company Hyderabad Electric Supply Company Quetta Electric Supply Company Tribal Electric Supply Company

Republic of Korea Targets and goals The Republic of Korea uses a combination of energy sources to meet their electric power needs. These include thermal (oil, gas and coal), nuclear and hydropower. Estimates of electricity demand growth are around 4 per cent per year through 2015. Imported petroleum is the most significant energy source, though the use of natural gas and nuclear power has increased in recent years. Renewable energy, mainly in the form of hydropower, is slowly increasing in capacity. Owing to increasing energy demand and environmental concerns, policymakers in the Republic of Korea are now considering sustainable development, which encompasses economic growth and environmental protection. The Government is planning to privatize the power generation assets of the State electricity utility, Korean Electric Power Corporation (KEPCO). The privatization will involve splitting KEPCO into separate generation, transmission and distribution units. In 2001, KEPCO was split into six separate subsidiaries to facilitate the move towards a market environment. Electricity systems will be unbundled in phases to create a competitive market. The transmission system will still be exclusively owned by KEPCO to ensure fair competition and a stable supply of electricity, and an independent regulatory agency, the Korea Electricity Commission, was established in 2001 to monitor the market, protect consumers and manage the privatization process. From 2003 to 2008, wholesale competition will be progressively introduced, and eventually consumer choice will be introduced for large consumers. From 2009 onwards it is expected that all consumers will have the opportunity to choose their supplier. The Government is also considering plans to restructure the energy pricing system to incorporate social costs, including environmental costs, into the

cost of energy production. Other strategies include encouraging energy conservation, creating markets for renewable energy sources, research and development into mid- to long-term energy technology and planning strategic regulations for fair market competition.

Renewable energy Other than hydroelectric resources, the majority of renewable energy supply comes from capturing waste heat. Other renewable energy sources have not been greatly utilized. However, under the National Vision for Environmental Policies in the 21st Century, there is an increased focus on renewable energy sources, such as photovoltaic power and fuel cells. Since the establishment of the New and Renewable Energy Development and Promotion Act in 1987, the Government has invested 174 billion Won (US$ 140 million) to research and develop renewable energy technologies, including photovoltaic power, fuel cells, bioenergy and waste energy. In addition, some policy measures being considered to promote renewable energy include lowering installation costs, requiring utilities to purchase electricity from renewable sources, and developing pilot projects.

Efficiency measures Owing to its scarce fossil fuel resources, the Republic of Korea has accorded high priority to energy conservation. As part of its energy vision, the Government will be focusing more on electricity demand management. Strategies being considered include encouraging energy efficiency in energyintensive industries and encouraging industries with lower energy intensities such as communication, biotechnology and information. The Government began implementing energy conservation programmes back in 1979. Based on

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the Rational Energy Utilization Act, attempts were made to build a low energy consumption industry, with various energy conservation and efficiency improvement policies aimed at industry, transport and residential consumption.

The country’s energy consumption and carbon emissions are projected to increase by approximately 3 per cent per year through 2020, and its electricity consumption is projected to double within this period.

Environmental impact

In order to reduce carbon emissions, one mechanism the Government plans to encourage is a more environmentally friendly lifestyle. This includes recycling energy-intensive resources and encouraging the further use of public transport. Examples of other strategies include introducing green pricing for new and renewable energy and encouraging the construction and renovation of housing to be more energy-efficient.

The Republic of Korea has ratified the Kyoto Protocol and plans to emphasize the development of nuclear power in an effort to reduce growth in carbon emissions. However, its status as a nonAnnex I State means that the Republic of Korea is not obliged to meet specific targets. The Republic of Korea has experienced rapid economic growth in recent years, though this slowed during the Asian financial crisis. The country’s energy consumption and energy intensity have increased alongside this growth, though its carbon intensity has actually remained relatively stable. The use of less carbon-intensive fuel sources is partially responsible for this.

Stakeholders •

Korean Electric Power Corporation (KEPCO) http://www.kepco.co.kr/

•

Ministry of Commerce, Industry and Energy http://www.mocie.go.kr/default.asp

Russian Federation Major achievements The Russian Federation has some of the most extensive fossil fuel reserves in the world and is the third largest energy consumer. The energy sector has undergone some dramatic changes which have contributed to the country’s economic recovery since the 1990s. The “Energy Strategy of Russia for the Period to 2020” was adopted by the Government in 2003 and sets out the strategic direction for the evolution of the energy sector.

Major challenges The Russian Federation faces substantial challenges ahead, as with any country liberalizing its electricity sector. Many institutional, regulatory and legal reforms still need to be implemented. Investment to refurbish many components of the current power system is required. Much of this could come from the private sector, but that will largely depend on the success of current market reform efforts.

Targets and goals In April 2003, electricity reform laws were passed, with the aim of creating an electricity market, enabling economically sensible governance and providing a regulatory structure for the operation of the transmission grid. Under this reform, tariff rates

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for the domestic market could be liberalized by 2005. In 2006, the Government aims to liquidate the Unified Energy System of Russia (UES), which is the dominant organization in the electricity sector. Electricity transmission will be controlled by the Government, but the generation and distribution facilities will be privatized. Electricity output is expected to grow at an average annual rate of 1.5 per cent until 2030. More than 80 per cent of new facilities are likely to be gas-fired. However, the Government has stated that it plans to expand the role of nuclear and hydropower in the future to allow for greater export of fossil fuels.

Renewable energy The use of renewable energy sources is fairly limited in the Russian Federation when compared with fossil fuels. A number of hydroelectric facilities exist and these hydropower resources will be expanded in the future. A considerable amount of geothermal power, estimated at 380-550 MW, could potentially be exploited in the Russian Federation. At present however, only one 11-MW facility is in operation in Rauzhetskaya in the Kamchatka region, though there are plans to expand on this. Additionally, a second 80-MW geothermal plant is under construction in Kamchatka.


Efficiency measures Energy intensity has increased slightly over the past 10 years, primarily due to a substantial drop in the Russian Federation’s GDP, which is more than the decrease in energy use. Another contributing factor is the abundance of energy resources that are used inefficiently, and the fact that very few improvements have been made to the infrastructure since the collapse of the Soviet Union. The strongest export sectors for the economy tend to be very energy-intensive industries.

Environmental impact The Russian Federation suffers from a number of energy-related environmental problems, such as air pollution and waste. Environmental improvements to date have been more the result of economic problems, such as the closure of many energy-intensive industries, than policy successes. The collapse of the Soviet Union led to a dramatic decrease in Russian energy consumption and consequently carbon emissions, which are substantially lower now than in 1990. The Russian

Federation has recently ratified the Kyoto Protocol and should benefit from selling carbon credits to other countries.

Financial aspects The development of the Russian electricity sector to meet the growth in energy demand will require a substantial investment. An essential part of attracting investment for these upgrades will be increasing the price of electricity for consumers and enforcing payment for services. Electricity tariffs are heavily subsidized, and in 2002 averaged less than 49 kop/kWh (1.6 US cents/kWh) for residential customers, and 65 kop/kWh (2.2 US cents/kWh) for industrial customers.

Stakeholders • • • • •

Ministry of Economic Development and Trade – the organization leading the electricity reform drive Ministry of Industry and Energy Ministry of Atomic Energy Unified Energy System of Russia (UES) Ministry of Natural Resources

Singapore Major achievements

Energy efficiency

Singapore’s new wholesale electricity market opened on 1 January 2003.

The National Energy Efficiency Committee promotes greater energy efficiency in the industrial, building, transportation and commercial sectors. Programmes include promoting clean energy (natural gas) in the energy production and industrial sector, encouraging co-generation, voluntary energy auditing programmes for energy-intensive industries, promoting green vehicles and a voluntary energy labelling scheme for home appliances.

The electricity retail market is being liberalized in phases, starting with higher electricity consumers followed by those with lower electricity consumption. Eventually, all consumers in Singapore will have the choice of buying electricity from a competitive retailer, directly from the wholesale electricity market or indirectly through the market support services licensee, SP Services.

Renewable energy Singapore has set the target of incinerating 100 per cent of the biomass in municipal wastes, including horticultural waste, wood waste, food waste and paper waste not recovered, reused or recycled. The heat produced from the combustion of waste is to be recovered to generate electricity, which will then be fed into the electricity grid. For other renewable energy sources such as photovoltaics, the National Environment Agency and the Economic Development Board are providing funding for testing through the Innovation for Environmental Sustainability Fund and the Innovation in Environmental Technology (EnnovaTe) programme.

Stakeholders •

Ministry of Trade and Industry http://www.mti.gov.sg/public/home/ frm_Mti_Default.asp

•

Energy Market Authority of Singapore http://www.ema.gov.sg

•

National Environment Agency http://app.nea.gov.sg

Further information For more information on Singapore’s electricity wholesale and retail markets, please refer to the following web site addresses: • •

http://www.ema.gov.sg http://www.emcsg.com

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•

http://www.mssl.com.sg/mssl/index.htm For further information on the Innovation for Environmental Sustainability Fund, and the EnnovaTe programme, please refer to the following: •

http://app.nea.gov.sg/cms/htdocs/ category_sub.asp?cid=42

•

http://www.sedb.com/edbcorp/sg/en_uk/index/ industry_opp/ engineering_environmental0.html

For further information on energy efficiency programmes, please refer to http:// w w w. n e e c . g o v. s g / p r o g r a m m e s / sub_programmes.shtm

Thailand Major challenges The decline in the economy of Thailand as a result of the Asian financial crisis resulted in a decline in domestic demand for electricity in 1998, though it improved in 1999. This led the Electricity Generating Authority of Thailand (EGAT) to revise electricity demand projections, delaying a number of power projects. Thailand’s energy consumption and energy intensity has been growing rapidly in the last two decades and with it carbon dioxide emissions. For example, energy consumed per capita quadrupled from 1980 to 2001 with carbon dioxide emissions rising by 7.9 per cent per year on average, from 36 million metric tons in 1980 to 178 million metric tons in 2001.

capacity in Thailand, with hydropower accounting for most of this. In an attempt to diversify the electricity supply, the Government is looking to expand the country’s use of solar power. For example, one project aims to supply 300,000 homes with solar cells to generate additional electricity. The Government is also encouraging the production of electricity from non-conventional and renewable sources through the Small Power Producer Programme, which has led to some innovative projects such as the use of rice husk as a biofuel.

Environmental impact

Targets and goals

In 2002, the Government ratified the Kyoto Protocol, though Thailand, as a non-Annex I country, is not required to reduce emissions below 1990 levels.

The Government of Thailand has plans to privatize the power sector and purchase electricity from the private sector. To enable customers to have a free choice in selecting their electricity supplier, the transmission system will be transformed into a common carrier.

The carbon intensity has become more pronounced since 1990 and is continuing to rise, albeit at a lesser rate than the energy intensity. However, despite increasing carbon emissions, Thailand only accounts for 0.7 per cent of the world’s total carbon emissions.

There have been plans to expand cooperation with neighbouring countries to develop energy resources and import electricity. To facilitate this, the transmission system throughout the country will be extended to connect with neighbouring countries such as Lao People’s Democratic Republic and China. Improvement of the transmission system will also assist in the development of power facilities, industrial development and tourism.

One of Thailand’s worst environmental problems is air pollution, particularly in Bangkok, which suffers from serious traffic problems. There are also records of excessive health problems among people living in areas surrounding thermal power stations. To help improve Thailand’s environment, a number of environmental initiatives have been instigated in recent years, though enforcement of existing laws and regulations could be improved.

Despite the recent growth in energy consumption, Thailand has diversified its energy sources, particularly expanding its use of natural gas. The Government further plans to promote energy efficiency to enable the development of a sufficient and reliable power supply.

Renewable energy Currently, renewable energy sources provide only a minor contribution to the total generating

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Stakeholders • •

Electricity Generating Authority of Thailand (EGAT) http://www.egat.co.th/index_run.htm Energy Policy and Planning Office (EPPO) http://www.eppo.go.th/


Turkey Major achievements Turkey attaches great importance to the efficient and rational functioning of the energy sector for enhancing the competitiveness of the national economy. Important progress has been achieved in restructuring and liberalizing the electricity and gas markets. The efforts to liberalize the Turkish energy sector gained pace in 2001 with the enactment of the Electricity and Natural Gas Market Laws. The new legal framework abolishes the vertically integrated State monopolies and allows private sector participation in the energy industry in Turkey, while policy-related issues fall within the responsibility of the Ministry of Energy and Natural Resources (MENR). A major institutional change has occurred with the establishment of the Energy Market Regulatory Authority (EMRA) in 2001, with administrative and financial autonomy. Electricity and natural gas markets have been in operation since 2002. The “Strategy Paper Concerning Electricity Market Reform and Privatization” was endorsed very recently, outlining the major steps to be taken for the smooth transition to a fully competitive market structure. Privatization of distribution assets and generation plants, transitional arrangements, security of supply and some other important aspects of the electricity market reform process are addressed for the period up to 2012.

National energy plan The Turkish energy policy concentrates on assuring energy supply in a reliable, sufficient, and timely manner to support economic and social development. Parallel to this target, the energy policy of Turkey has the following major objectives: • • •

•

Prioritizing the energy security related activities in order to cope with increasing demand and import dependency; Taking into account the environmental concerns in all stages of the energy chain within the framework of sustainable development; Facilitating the reform and liberalization activities in the energy sector so as to increase overall productivity and efficiency and enhance transparency by creating a competitive framework; Intensifying energy technologies related to research and development studies and activities;

•

Realizing projects regarding the transportation of hydrocarbons in the East to the developed markets in the West through the recognition of the “East-West Energy Corridor” concept.

Targets and goals Market liberalization has improved overall economic efficiency. On the other hand, enhancing energy security and reliability within the competitive market structure is a challenge that requires determination and implementation of well-defined policy tools. Although environmental quality has been given high priority for the past few years, the financial burden incurred by the implementation of necessary measures may require more costeffective approaches to be followed. Integrated approaches combining the achievement of economic efficiency, energy security and environmental quality in a sustainable manner have been considered in determining policies. According to the provisions of the “Strategy Paper Concerning Electricity Market Reform and Privatization”, privatization will start with the distribution segment as distribution companies holding retail licences and operating in a liberal market will need to create confidence in investors engaging in generation activities. Privatization of this sector is expected to be completed in 2006. State-owned generation plants will then be privatized in a grouped manner so as to enhance competitiveness on the generation side of the market. Further, Turkey is actively taking part in regional market establishment initiatives, such as the Energy Community of South-East Europe and the Med-Rind Project. These initiatives are expected to increase cross-border electricity trading and also give momentum to further liberalization efforts in Turkey, due to increased economies of scale. Fuel use and diversification By the end of 2003, the total installed capacity in Turkey was 35,587 MW. The majority of this installed capacity comes from hydropower, natural gas and coal resources. Energy supply is a very important issue and remains a major concern for Turkey owing to the limited domestic availability of resources, the growing energy demand, and the high level of dependence on energy imports. Therefore, utilization of domestic energy resources and

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diversification of fuels is considered a high priority by the Government. Fuel switching in the power generation mix has been significant over the past two decades, with the progressive replacement of coal-fired plants by gasfired plants. Improving the transmission and distribution of the gas infrastructure and simultaneously spreading the accessibility of gas throughout the country have been essential to this transition.

Renewable energy for power generation A law has recently been drafted to support renewable energy based on competitive market conditions. Supporting mechanisms under this law include feed-in tariffs and purchase obligation. These mechanisms are envisaged to be applied for a certain period of time to facilitate the investments in electricity generation from renewable energy sources. The ultimate goal is to achieve more market-oriented mechanisms so as not to distort the competitive electricity market. The law is expected to contribute to the development of power plants based on renewable energy sources and utilization of domestic energy resources. To further supplement this legal framework, a World Bank Loan of US$ 200 million is ready to be used for investment in power plants based on renewable resources. The Electricity Market Licensing Regulation provides several incentives for generation facilities based on renewable energy resources, such as a reduction in licence fees, an exemption from licence fees for the first eight years of operation, options to wholesale to the private sector, and a degree of purchasing priority.

Efficiency measures Efficiency measures undertaken in Turkey include introducing the Energy Efficiency Law (estimated to become legislation in 2004), establishing or tightening efficiency standards for industrial boilers and electric motors, and increasing the resources of energy efficiency organizations. Turkey is also participating in international cooperation programmes on energy efficiency, such as efficiency standards and labels for household appliances and transport vehicles. Other measures being investigated include developing tax reduction and investment promotion programmes for the implementation of energy efficiency programmes in industry and other sectors,

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and expanding energy efficiency services such as energy audits, training programmes and energy management systems.

Environmental impact Energy related carbon dioxide emissions from Turkey were about 2.7 tons per capita in 2001. The Government attempts to minimize energy-related carbon dioxide and other greenhouse gas emissions through measures aimed at improving energy efficiency and conservation, increasing the share of renewable energy sources in its energy supply, fuel switching from high-carbon to low-carbon fuels, adopting emission reducing systems, limiting the use of energy and preventing losses in energy distribution systems. Although Turkey is pleased to be a party to the United Nations Framework Convention on Climate Change, it has been recognized that the country is in the early stages of industrialization and is subject to different requirements than other countries under the Annex I to the Convention. A number of other measures to improve the environmental performance of the sector are currently being implemented, largely due to Turkey’s move to harmonize its legislation to that of the European Union. These include installing and rehabilitating pollution control equipment and strengthening the resources of the Ministry of Environment and the capability of agencies responsible for inspection and enforcement of environmental legislation.

Stakeholders •

• •

• • • •

•

The Ministry of Energy and Natural Resources (MENR) http://www.enerji.gov.tr General Directorate of Energy Affairs http://www.enerji.gov.tr Electrical Power Resources Survey and Development Administration http://www.eie.gov.tr Turkish Electricity Transmission Corporation http://www.teias.gov.tr Electricity Generation Corporation http://www.euas.gov.tr Turkish Electricity Trading Company http://www.tetas.gov.tr Turkish Electricity Distribution Corporation (TEDAS) http://www.tedas.gov.tr Energy Market Regulatory Authority (EMRA) http://www.emra.org.tr


Annex

List of organizations and authorities that supplied information to the ESCAP secretariat for the compilation of this publication Armenia

Head of Development and External Relations Department Ministry of Energy 2 Government House, Yerevan Armenia

Azerbaijan

Chief Engineer Azerenerji JSC A. Alizade 10, Baku Azerbaijan through Director Energy, Minerals and Environment Economic Cooperation Organization 1 Golbou Alley Kamranieh, Tehran Islamic Republic of Iran

Bangladesh

Director, System Planning Bangladesh Power Development Board (BPDB) WAPDA Building (5th Floor) Motijheel Commercial Area Dhaka – 1000 Bangladesh

Bhutan

Executive Engineer Department of Energy Planning and Coordination Division Thimphu Bhutan

Brunei Darussalam

Research and Development Section Department of Electrical Services Ministry of Development Old Airport Berakas Bandar Seri Begawan BB3510 Brunei Darussalam through Second Secretary and Permanent Representative to ESCAP Kedutaan Besar Negara Brunei Darussalam Embassy of Brunei Darussalam 132, Soi Sukhumvit 23 Sukhumvit Road Bangkok 10110 Thailand

57


Cambodia

Executive Director Electricite Du Cambodge St. 19 Daun Penh District Phnom Penh Cambodia

Fiji

Chief Financial Officer Fiji Electricity Authority Head Office 2 Marlow Street Suva Fiji

Hong Kong, China

Commissioner for Census and Statistics Census and Statistics Department Hong Kong Special Administrative Region Wanchai Tower, 12 Harbour Road, Wan Chai Hong Kong, China Statistician Census and Statistics Department Chuang’s Hung Ham Plaza, 83 Wuhu Street, Hung Hom, Kowloon Hong Kong, China General Manager (Management Services) The Hong Kong Electric Co., Ltd Hong Kong, China Manager, Regulatory Management CLP Power Hong Kong Limited 147 Argyle Street Kowloon, Hong Kong, China

Islamic Republic of Iran Manager of Information Centre Tavanir Building No. 4 Yasemi St. Valieasr St. Tehran Islamic Republic of Iran

58

Japan

Research Department Japan Electric Power Information Centre, Inc 15-33 Shibaura, 4-chome Minato-ku, Tokyo Japan

Macao, China

Manager Budgeting and Planning Office Companhia de Electricidade de Macau – CEM, S.A. Edificio CEM Estrada D. Maria II Macao, China


Mongolia

Deputy Director Fuel and Energy Policy Department Ministry of Infrastructure Government Building - 2 United Nations Street - 5/2 Ulaanbaatar-210646 Mongolia

Myanmar

Managing Director Myanma Electric Power Enterprise 197-199 Lower Kyimyindine Road Ahlone Township Yangon Myanmar

Pakistan

General Manager Planning (Power) Pakistan Water and Power Development Authority Basement, WAPDA House Lahore Pakistan

Philippines

Director Energy Policy and Planning Bureau Department of Energy Energy Centre, Merritt Road Fort Bonifacio, Taguig, Metro Manila Philippines

Singapore

Analyst Energy Market Authority of Singapore #15-05, 111 Somerset Road Singapore 238164

Turkey

Expert Ministry of Energy and Natural Resources Enegi ve Tabii Kaynaklar Bakanligi Inonu Bulvari No: 27 Bahcelieuler Ankara Turkey through Director Energy, Minerals and Environment Economic Cooperation Organization 1 Golbou Alley Kamranieh, Tehran Islamic Republic of Iran Ambassador Extraordinary and Plenipotentiary and Permanent Representative to ESCAP Embassy of the Republic of Turkey 61/1 Soi Chatsan, Suthisarn Road Bangkok 10310 Thailand

59

Electric Power in Asia and the Pacific 2001 and 2002

AIDS in East Asia and the Pacific

Europe and the Asia Pacific (Esrc Pacific Asia Programme (Series).)

Culture and Society in the Asia-Pacific (Pacific Studies)

Governance in the Asia-Pacific

Asia-Pacific in Figures 2006 (Economic and Social Commission for Asia and the Pacific)

The Military and Democracy in Asia and the Pacific

Economic and Social Development in Pacific Asia

The Military and Democracy in Asia and the Pacific

Cultural Governance and Resistance in Pacific Asia

Asia-pacific Trade and Investment Review, 2008 (Economic and Social Commission for Asia and the Pacific)

Regionalism and Rivalry: Japan and the U.S. in Pacific Asia

Globalization and Educational Restructuring in Asia and the Pacific Region

Beyond Bilateralism: U.S.-Japan Relations in the New Asia-Pacific (Contemporary Issues in Asia and Pacific)

Elections in Asia and the Pacific: A Data Handbook: South East Asia, East Asia, and the Pacific Volume 2

SPICE for Power Electronics and Electric Power

SPICE for Power Electronics and Electric Power

SPICE for Power Electronics and Electric Power

International Relations Theory and the Asia-Pacific

Localising Power in Post-Authoritarian Indonesia: A Southeast Asia Perspective (Contemporary Issues in Asia and Pacific)

Sustainable Agriculture and Food Security in Asia and the Pacific (Economic and Social Commission for Asia and the Pacific)

International Relations Theory and the Asia-Pacific

Medicinal Plants of Asia and the Pacific

Towards Recovery in Pacific Asia (ESRC Pacific Asia Programme Series )

Gender and Power in Affluent Asia (New Rich in Asia)

State of the environment in Asia and the Pacific 2005

The New Economy in East Asia and the Pacific

State of the Environment in Asia and the Pacific 2005

ADB OECD Anti-Corruption Initiative for Asia and the Pacific: The Criminalisation of Bribery in Asia and the Pacific

Economic Development in Pacific Asia

Political Development in Pacific Asia

Electric Power in Asia and the Pacific 2001 and 2002

AIDS in East Asia and the Pacific

Europe and the Asia Pacific (Esrc Pacific Asia Programme (Series).)

Culture and Society in the Asia-Pacific (Pacific Studies)

Governance in the Asia-Pacific

Asia-Pacific in Figures 2006 (Economic and Social Commission for Asia and the Pacific)

The Military and Democracy in Asia and the Pacific

Economic and Social Development in Pacific Asia

The Military and Democracy in Asia and the Pacific

Cultural Governance and Resistance in Pacific Asia

Asia-pacific Trade and Investment Review, 2008 (Economic and Social Commission for Asia and the Pacific)

Regionalism and Rivalry: Japan and the U.S. in Pacific Asia

Globalization and Educational Restructuring in Asia and the Pacific Region

Beyond Bilateralism: U.S.-Japan Relations in the New Asia-Pacific (Contemporary Issues in Asia and Pacific)

Elections in Asia and the Pacific: A Data Handbook: South East Asia, East Asia, and the Pacific Volume 2

SPICE for Power Electronics and Electric Power

SPICE for Power Electronics and Electric Power

SPICE for Power Electronics and Electric Power

International Relations Theory and the Asia-Pacific

Localising Power in Post-Authoritarian Indonesia: A Southeast Asia Perspective (Contemporary Issues in Asia and Pacific)

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