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Regions and Countries Regional Cooperation Greater Mekong Subregion Publications Proceedings of Ministerial, Forum, and Working Group Meetings Eighth Meeting of the Subregional Electric Power Forum (EPF-8)
Eighth Meeting of the Subregional Electric Power Forum (EPF-8)Summary of ProceedingsIntroduction1. The Eighth Meeting of the Subregional Electric Power Forum (EPF-8) was held in Hanoi, Socialist Republic of Viet Nam (SRV), on 14-15 December 2001. The Meeting was co-organized by the International Cooperation Department (ICD), Ministry of Industry (MOI), SRV, and the Asian Development Bank (ADB). 2. The participants included delegations from the Kingdom of Cambodia, the People's Republic of China (PRC), the Lao People's Democratic Republic (Lao PDR), the Union of Myanmar, the Kingdom of Thailand, and the Socialist Republic of Viet Nam. Representatives from the World Bank, Mekong River Commission Secretariat (MRCS), ASEAN Centre for Energy (ACE), and ADB also attended. The list of participants is attached as Appendix 1. 3. The Meeting was co-chaired by Dr. Tran Minh Huan, Director General, ICD-MOI and Mr. Khalid Rahman, Manager, Energy Division West, ADB. The Meeting undertook country presentations on power sector policy developments (Session II), including generation and transmission plans. The Meeting also discussed (in Session III), the adoption of the Inter-Government Agreement on Power Trade (IGA-PT). The GMS countries earlier agreed that the adoption of the IGA-PT by the EPF would be the pre-requisite to the IGA's signing by the GMS Ministers in the 2002 Ministerial Conference. 4. The Agenda and Program of the Meeting is attached as Appendix 2. I. Opening Session5. Mr. Khalid Rahman welcomed the participants to the opening of the EPF-8 meeting. He recalled the topics that the EPF discussed in its last meeting in Vientiane. These topics, seen to impact on the directions of GMS' energy cooperation program, covered power sector liberalization in Thailand, power sector restructuring in Malaysia, and the findings of the World Commission on Dams (WCD) report. He noted that two EGP meetings were held since last year to discuss the Regional Indicative Master Plan on Power Interconnection in the GMS (the "master plan") and the IGA-PT. He said that the two tasks in this EPF meeting, were to discuss each GMS country's energy sector developments, and to discuss and adopt the IGA-PT in preparation for its signing in the next GMS Ministerial Conference in 2002. He noted that the 10th Ministerial Conference held in Yangon gave further impetus to the GMS cooperation program in energy. He looked forward to fruitful deliberations among the participants, and thanked the Government of SRV for hosting the meeting to enhance power trade and cooperation in the GMS. He introduced Mr. John Samy, Resident Representative, Viet Nam Resident Mission, ADB, to deliver his opening address. 6. Mr. John Samy reported the importance of the 10th GMS Ministerial Conference held only two weeks earlier in Yangon, Myanmar. During the said Conference, he noted that the GMS Ministers endorsed a GMS Cooperation Agenda for the next decade embracing five strategic thrusts: strengthening infrastructure linkages, facilitating cross-border trade and investment, enhancing private sector participation and competitiveness, developing human resources and protecting the environment. He cited the significant milestones achieved in energy cooperation, with the countries close to having a basic framework for interconnection of their power systems. He cited the GMS Program thrust of environmentally sustainable development, which requires enhancing consideration of social and environmental concerns in energy development programs. 7. Mr. Rahman introduced the distinguished guest of the EPF-8 meeting, H.E. Hoang Trung Hai, Vice Minister of Industry, SRV, and requested him to deliver his opening remarks. 8. H.E. Hoang Trung Hai warmly welcomed the participants to the Meeting. He noted that power development is one of the priority areas of cooperation in the GMS. He noted that such program of cooperation has yielded substantial results, in terms of giving the GMS countries the opportunity to exchange lessons and ideas, particularly on hydropower technology and its social/ environmental aspects. He cited the Master Plan study and the IGA-PT which shall both create the enabling conditions and the legal framework for implementing interconnection and power trade in the GMS, and in developing the regional power market. He expressed the appreciation of the Government of SRV for the support of the ADB and World Bank in the energy cooperation efforts of the GMS countries. He thanked the EGP members for their contributions to advance energy cooperation in the GMS and enjoined them to find time to enjoy what the city could offer. He wished successful conclusion of the EPF-8 meeting. II. Country Presentations: Report on Power Sector Policy Developments, Including Generation and Transmission PlansCambodia9. Mr. Chan Sodavath provided background of the power sector, outlining the organizational arrangements with respect to the country's electricity business. He gave a background of the power sector, which consisted of 21 isolated power systems with no transmission links. He gave figures on peak consumption, per capita energy consumption and electrification rate, among others. He showed slides on power generation and breakdown of supply from EdC and IPPs. He showed components of the power development plan, which included construction of the Southern and Western grid, priority interconnection projects with Viet Nam and Thailand, and rehabilitation project of Kirirom hydro and 115kV transmission to Phnom Penh. However, he added that to meet the power demand in Phnom Penh, Cambodia relies on power imports from Viet Nam through the 220 kV transmission line. He presented a map of Cambodia and pointed out the locations of proposed generation and transmission/ distribution projects in the PDP. Yunnan, PRC10. Mr. Yang Xingwang first presented the social and economic situation in Yunnan and showed figures on population, urban ratio, GDP growth and GDP structure by sectors. He then presented the situation of Yunnan's electric power industry in 2000, which showed total generation capacity, and breakdown by source and operator. He noted the new generation capacity and new substations added in 2001. He cited the power sales from Yunnan to Gunagdong, which would be increased from 400 MW (2001) to 900 MW (2002). He then presented the strategies for future development of Yunnan based on establishing 5 industrial bases, one of which is hydropower. He pointed out the existing agreement on power transmission from Yunnan to Guangdong, and the development in the program "Power Transmission from West to East". Mr. Yang then presented the 2001-2005, 2006-2010 and 2011-2015 plans for new generation capacity and transmission lines. 11. Comment. Mr. Rahman asked about the funding for the pipeline of projects. Mr. Yang said these projects would be financed from domestic resources. Lao PDR12. Mr. Houmphone Bulyaphol presented the four (4) power sector policies of government, namely to: maintain/ expand affordable, reliable and sustainable electricity supply; promote power development for export; develop/ enhance legal and regulatory framework; and reform institutions to conform with sector requirements. He then enumerated the activities/ initiatives under each of these policies. He presented slides, which showed power generation and consumption (1995-2000), generation by ownership (EdL/ IPP), breakdown of domestic sales, electrification rate and projected electrification ratios up to 2020. Mr. Houmphone then showed slides on present facilities such as the aggregate generation/ transmission/ distribution facilities, and breakdown of existing power plants, and T&D facilities. He noted the progress of the Nam Theun 2 hydropower project. On demand forecast, he showed growth rates of about 11% for both energy demand and peak load. The last slides contained listing of planned generation and transmission projects, which detailed the various projects, their capacities, costs, and commissioning years. Myanmar13. U Aung Khaing provided the history and organizational set up of the Ministry of Electric Power (MOEP), Department of Electric Power (DEP), and Myanma Electric Power Enterprise (MEPE). He noted the government's general energy policy, which called for employing gas turbine for short term and hydropower for long term energy source. Among the general strategies was to explore all available sources of power, including new and renewable sources. He then presented the breakdown of installed capacity, and power units generated and sold for 2000-2001. After a brief review of the existing power system, U Aung Khaing explained past demand growth and the present national grid situation. He then explained the first (5 years) generation expansion plan, and first (5 years) transmission expansion plan. He proceeded to the main objectives of the long-term (30 years) plan and showed the list of earmarked projects for the long-term plan. He outlined private sector participation in ongoing IPP projects, as well as export-oriented projects. He then discussed the background and status of the Myanmar-Thai transmission line interconnection. 14. Comment. Mr. Rahman asked about the funding mechanism for the ongoing projects. U Aung Khaing replied that these projects were being developed with own financing, although government also invites foreign investors to fund the projects. Thailand15. Mr. Prutichai presented the new EGAT Power Development Plan (PDP) 2001 approved by EGAT's Board and for submission to the National Energy Policy Committee (NEPC). He began by providing an overview of EGAT's power system (or national grid) which was divided into five operating regions: northern, northeastern, central, metropolitan, and southern regions. He described the existing generation capacity, showing shares by fuel types) and transmission system characteristics. He showed EGAT's total generation requirement up to year 2016, based on the adjusted moderate economic growth scenario (MER). He then presented the Power Development Plan (PDP) 2001 up to 2016 and pointed out its objectives and main features which included: total installed capacity of 48,000 MW by 2016; improving efficiency of old plants; and purchase of power from IPPs, SPPs, and Lao PDR, among others. Mr.Prutichai then gave a brief description of the existing and planned projects for each of EGAT's five operating regions. Finally, he detailed transmission system expansion projects (apart from transmissions associated with power plant projects) which consisted of several transmission lines and substations expansion combined into packages suitable for financing/ implementation. 16. Comments. Mr. Kim asked if Thailand currently imports power from Malaysia. Mr. Prutichai said that the HVDC point to point project was completed. He explained that the power trade between the two countries would be based on price quotations one month ahead. Mr. Rahman asked about the high reserve margin, which differed from that shown in the master plan study. Mr. Prutichai replied that according to the EGAT practice, the reserve margin would be 15% corresponding to the Loss of Load Probability (LOLP) one day in a year. Mr. Houmphone asked about the status of the power pool in Thailand. Originally set to start in 2003, the pool would have to be postponed since, Mr. Chavalit explained, there was a need to review the suitable structure of the power pool for Thailand. Mr. Sodavath (Cambodia) asked about the management of peak demand, and Mr. Prutichai explained about demand side management efforts (including time of use pricing) to improve the load factor and shift the peak time. U Soe Myint Lwin (Myanmar) also asked about the criteria for Thailand's purchase of power from neighbors, especially considering prospective imports from Myanmar's Thasang hpp. Mr. Prutichai noted that for power transactions security criteria of Thailand, power imports from one, two, and three countries would be limited to 13%, 25% and 33% of the peak demand. Viet Nam17. Mr. Nguyen Van Vy presented the current status of Viet Nam's power sector, which has total installed capacity of 7,300 MW. He then enumerated the country's abundant energy resources such as hydropower, coal, oil, and uranium, and renewable resources like solar, wind and bio- mass. Electricity demand was forecast to grow to 70-80 billion kWh by 2010, and to 160-200 billion kWh by 2020. He pointed out that such drastic increases in power needs would require six major directions for power development. Two of these involved establishing national energy strategy and policy (including power sector structural reform) and finalizing the Electricity Law for national Assembly approval. Another direction mentioned was participating in power trade and interconnection with neighbor GMS and ASEAN countries, among others. Mr. Vy then enumerated the specific directions for power generation and power grid development. For power generation, one was to maximize development of hydropower, gas, and coal fired power and renewable energy. For grid development, one was to construct a power network at all voltage levels in accordance with generation development. He then showed the investment requirements for the projects presented. 18. Comments. Mr. Daovong asked about IPP arrangements in Viet Nam. Mr. Vy showed locations of IPP projects and explained that the price depended on load factor and supply. The EPF was updated on the progress of the interconnection project to link Viet Nam and Cambodia, investment that was prioritized by the GMS master plan. Day 2III. Draft Inter-Government Agreement on Regional Power Trade in the Greater Mekong Subregion (IGA-PT)19. Mr. Rahman opened the day's session with a clarification that the IGA discussions would focus on securing the endorsement of the GMS countries on the draft of the IGA, in preparation for its signing next year. The substance of the IGA had been extensively discussed in earlier EGP meetings. Ms. Minogue provided the EPF meeting with a summary of the IGA-PT drafting process and contents of the Draft Final IGA-PT dated 14 December 2001. Ms. Minogue discussed the role of the first interim Regional Power Trade Coordinating Committee (RPTCC). She also discussed the remaining tasks related to the signing of the IGA, and the next steps in implementing the IGA-PT. 20. GMS country representatives gave their additional comments on the latest draft of the IGA-PT. Ms. Minogue took these comments into account and secured the group's consensus on the changes proposed. It was clarified that the names and titles of the signatories could be finalized close to the signing date, since designated signatories could still change. Ms. Minogue incorporated the agreed changes in a revised draft, which was circulated to the EPF participants. After a final review by the EPF participants, the revised draft was adopted by EPF-8, which would be endorsed for signing in the 11th GMS Ministerial Conference in 2002. Report of the Chairman of EGP-621. Mr. Prutichai reported that the EGP-6 meeting had come to a fruitful conclusion. The consultant gave comprehensive presentation of the Draft Report of the Indicative Master Plan on Power Interconnection in GMS countries. The Advisory Panel, EGP members and observers provided extensive suggestions on the Final Report. The EGP-6 agreed that the Consultant take the comments and suggestions into consideration and review; the Meeting noted that some particular issues may need to be re-studied. It was proposed that a second Draft Final Report be circulated and, if possible, another presentation be made before submitting the Final Report. 22. Mr. Prutichai also reported that the EGP-6 also discussed the EGP's Work Plan for 2002-2004. The Meeting agreed to further discuss additional proposed activities after the Workshop on Wednesday 19 December 2001. Adoption of EPF-8 Minutes23. The EPF members reviewed the draft minutes and after incorporation of suggested changes, the body therefore approved the minutes of the EPF-8 meeting. Next EPF Meeting24. The venue for the next EPF meeting was discussed, and it was proposed to hold the meeting in Myanmar. The delegation from Myanmar stated that they need to obtain approval from the Ministry of Electric Power to host the next EPF meeting. Closing Remarks25. Mr. Rahman cited the adoption of the IGA-PT, which will enable the GMS countries to move forward to more specific activities to define the power market. He hoped the participants would take the time to enjoy the charming city of Hanoi. He thanked the hosts for providing the opportunity for the GMS countries to work together. He wished everyone a happy holiday season. 26. Mr. Huan noted the hard work done in the past three days. He emphasized that the meeting provided the opportunity to further cooperation among the GSM countries. He thanked the ADB and other donors for their continued support for GMS power cooperation. He also thanked the GMS representatives and observers for the success of the meeting. He wished everyone good health and a nice stay in Viet Nam.
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