The proposed project will improve: (i) electricity wholesale metering and billing all over the Republic of Tajikistan; and (ii) electricity supply in Panjakent region through reinforcement of high voltage transmission network. The outcome of the project will be an expanded and metered transmission system. The outputs of the project include: (i) installation of 2,700 wholesale meters and billing system; and (ii) 90 km of new 220kV transmission line interconnecting the Panjakent and Ayni regions.
In 2001 the government initiated a three phase (commercialization, separation, privatization) restructuring process of Barki Tojik. The first phase, commercialization, is extensively supported by ADB through Sector Operational Performance Improvement Program (SOPI). The program addresses the issues of governance, financial management, control and audit, legal and regulatory frameworks, management systems, organizational structure and technical operations. On 11 June 2013, the government approved the restructuring action plan and new structure of Barki Tojik, with three departments under the same legal entity; generation, transmission, and distribution. Heads of these departments have already been appointed and formation of new structure, based on international practices of modern power utility, is ongoing.
Restructuring of Barki Tojik, requires capital investments. The government undertook steps in this direction as well. The turnkey contract for installation of supervisory control and data acquisition system (SCADA) and associated telecommunication system, financed by ADB, is expected to be awarded in the first quarter of 2014. The World Bank and EBRD are financing the installation of the retail (end-user) meters in the two biggest load centers, Dushanbe and Khujand. The remaining gap is the bulk electricity metering from generation, through transmission and up to retail meters. There is a need of installation of wholesale meters and associated billing system, which will enable the management of Barki Tojik to: (i) account all electricity flows and associated costs; (ii) quantify technical and non-technical losses at the wholesale level of the entire grid, and plan actions for their reduction; and (iii) support the restructuring through definition of clear borders between generation, transmission and distribution.
At the same time, certain parts the Tajikistan transmission grid of still suffer from disconnection from the Central Asian Power System in November 2009. Prior to the disconnection, the Penjikend region of Tajikistan, with population of 261,000 (39,122 customers), was supplied from two 220 kilovolt (kV) lines from Uzbekistan. From Panjakent electricity was further transmitted to Ayni region with population of 75,000 (2,100 customers). Peak demands of Panjakent and Ayni are 75 MW and 20 MW, respectively. From Panjakent to Ayni electricity was transmitted over 102 kilometers through 110 kV line built in 1965 and with maximum rating of 67 MW. After 2009, these two regions became isolated from the main transmission grid of Tajikistan.
Barki Tojik addressed the issue and in 2011 energized new Sugd-Ayni 220 kV line which interconnected Ayni with main transmission grid. From Ayni electricity is currently supplied further to Panjakent using old 110 kV line. However, since the demand in Panjakent is higher than the capacity of the line, households and industry in the region suffer from load shedding even in summer time, which is energy surplus period in Tajikistan. Additional transmission capacity is, urgently needed to satisfy current and future power demand, which is expected to grow to 100 MW in next 3-5 years primarily caused by industrial development.
|Project Rationale and Linkage to Country/Regional Strategy
The total installed generation capacity of Tajikistan is 5,055 megawatts (MW). In 2012 it generated 16.9 terra-watt hours (TWh) of which only 13.2 TWh was billed. The difference is a sum of the power system's own consumption and losses. Total transmission and distribution system losses in Tajikistan, as in any power system, are a combination of technical and non-technical (or commercial losses). Both types of loss are a cost to the state power utility, Barki Tojik, as they reduce the amount of electricity for which payment is received from the customers.
Total transmission/distribution system losses in Tajikistan are currently estimated at around 22%, of which transmission system technical losses accounted for 5% in 2012. Distribution system losses are 17% and have remained virtually unchanged since 2006. Barki Tojik does not recognize commercial losses and therefore applies technical losses norms to the amount of energy received into the distribution networks from transmission. These are unreliable figures and probably understated due to absence of proper methodology and relevant metering system.
Actions are needed to reduce the losses. Reduction of technical losses requires capital investment. However, the actions needed to reduce non-technical losses, representing a financial loss to the company, are different and require capital investment as well as effective/efficient management of the utility's commercial activities, such as metering, billing, and collections. Reduction of non-technical losses is a priority for the government and number of steps has already been initiated.
The financing of the project was requested by the Government of Tajikistan. The proposed project is in line with ADB's country partnership strategy, 2010 -2014. The project is included in the country operations business plan, 2013 2014 for Tajikistan. It will be the seventh project intervention in the power sector of Tajikistan.