ISLAMABAD: Pakistan on Tuesday underlined the need for increased cooperation among member countries of South Asian Association for Regional Cooperation (SAARC) to promote trade of cross-border electricity aimed at achieving sustainable economic growth and ending power load shedding in the region.
National Electric Power Regulatory Authority (NEPRA) Chairman Tariq Saddozoi stressed the need for increasing cross-border electricity trade in the South Asian region.
“Increasing cross-border trade of electricity can play a major role in overcoming challenges to sustain rapid economic growth and making the region free of load shedding. It will help bring down energy prices, mitigate power shocks, relieve shortages, facilitate decarbonisation and provide incentives for market extension and integration,” Tariq Saddozoi said while addressing the inaugural session of the 2nd meeting of SAARC Council of Experts of Energy Regulators (Electricity) here.
He said increased cross-border electricity trade can play a vital role in helping to overcome power outage challenges in the region. He said electricity trade can help develop regional pools.
Tariq Saddozoi reiterated Pakistan’s full commitment to the SAARC framework agreements. He said by signing the SAARC Framework Agreement for Energy Cooperation (Electricity) on November 27, 2014, Pakistan had recognised the importance of the electricity in promoting economic growth and improving the quality of life in the region.
He said there was a need to harmonise laws, rules and regulations to achieve the objective of cross-border trade of electricity, adding “the required laws should be framed in line with the existing laws and requirements of system demand, physical infrastructure development, and system operation with reliability and stability, economic and commercial aspects including settlements and reconciliation of obligations.”
However, he said, certain steps were needed to implement such cross-border trade by ensuring physical interconnection at borders and availability of adequate transmission capacity in the relevant facilities.
The chairman said most of the SAARC countries were struggling to construct their core infrastructure and undertaking the additional development of facilities, seeking the financial and technical support of leading multilateral agencies like Asian Development Bank, World Bank and Japan International Cooperation Agency for efficient execution of power projects.
“I see the role of multilateral agencies in carrying out feasibility studies, providing financial support and review of relevant laws of the member countries. As far as Pakistan is concerned, NEPRA has already finalised its regulation on the import of electric power.”
He expressed NEPRA’s full support for cross-border electricity trade in the South Asian Region.
The council elected NEPRA senior advisor Hussnain Zigham as its chairperson.
