Regional Energy Markets
Assistance Program
for Central Asia
Presentation at
SARI Meeting in New Delhi, March 20-22, 2007
By
Anil K. Mishra
Senior Energy Policy Advisor
USAID/CAR, Almaty, Kazakhstan
Regional Market Drivers – Trade and
Transmission Expansion / Access
Economic growth and demand in Kazakhstan, Russia and China
Kazakhstan internal reforms: Unbundling, Genco Privatization and
Wholesale Electricity Market – Kegoc and Korem
Kazakh North-South grid expansion and open access
– Kazakh, Kyrgyz and Tajik exports – 10TWh
Afghan Northern Transmission System (NTS) and New Links
Expanded North-South Grid – an Energy Corridor
challenges – technical, policy and politics
REMAP Purpose
USAID recognizes the importance of energy sector in the development of
Central Asia
– Energy is driving economic growth in Central Asia
– Electricity sector development has significant potential for growth in trade and
investment
An effective, modern energy market will:
– promote energy security and economic stability to the benefit of all Central Asian
nations
– attract investment in Central Asian nations and
– facilitate trade within Central Asia and out side such as South Asia
USAID in cooperation with USEA has initiated a multi-year Regional Energy
Markets Assistance Program (REMAP) to support:
– Professional partnerships and exchange programs between Central Asia, Europe
and USA
– Development of policies, regulations, and energy market concepts by Central
Asian energy specialists; supported by a team of industry experts in energy
market design, legal/regulatory, and engineering from USA, Europe and other
countries with experience in SE Europe
REMAP Objectives
Establish a competitive electricity market in Central Asia
Increase electricity trade in Central Asia. This will make
development of new generation resources financially
feasible, stimulating investment and economic growth in
the region.
Build the capacity of CAR electricity regulators to
develop the electricity industry in the region, while
protecting the interests of consumers
Provide a market-based framework for regional
cooperation utilizing existing resources and development
of new projects
Provide a rational basis for export of regional Energy
Areas of Engagement
REMAP supports the development of the Central Asia regional energy
market with a structured and sequential approach that is carefully designed
by Central Asian energy market participants to fit the unique circumstances
in the region
Component 1: Regional Electricity Market Development
– Support Regional Market Design and Bilateral Electricity Trading
Component 2: Market Development Policy Work
– Help develop policies and regulations in each Central Asian country that support
national and regional goals as part of a clear and efficient regional electricity
market and trade
Component 3: Support for Electricity Sector Reforms
– This component will support Kyrgyzstan and Tajikistan achieve national goals
through specific electricity sector reforms in each country
Delivery Mechanisms
REMAP uses a “hybrid” model that combines technical expertise
and experience of European and American industry practitioners
from USEA’s Energy Partnership Information Exchange Program
with the advice and council of firms specializing in energy markets,
legal/regulatory reform and engineering firms:
– Work through Task Forces comprised of Central Asian stakeholders, to
address issues related to developing a Central Asia regional power
market
– Provide technical assistance to support the Central Asian counterparts
as they develop the Central Asia regional power market
– Bring together Central Asia energy specialists from American and
European utilities, regulatory agencies, transmission system operators,
market operators, eligible customers and others to share their
experience in the development of regional competitive power markets
REMAP Team of Experts
REMAP helps Central Asian counterparts strengthen the
development of the Central Asia regional electricity market by
drawing on the experience of REMAP experts and lessons learned
by them around the world. REMAP team of experts includes:
– United States Energy Association (USEA)
– Electricity Coordination Center of Belgrade (EKC)
– Gestalt
– KEMA
– Moseley/Horizon
– Pierce Atwood
– Regional Partners
Implementation Plans
Implementation Plans have been established for each of the
program components using the hybrid model and country-visits.
These Plans are “living documents” that detail the set of technical
assistance and information exchange activities supported by
Technical Assistance, Energy Market Development Work-shops and
Seminars.
These Plans are reviewed and revised through a consultative
process with USAID/CAR, members of the EMD Work-shops and
counterparts in Kazakhstan, Kyrgyzstan and Tajikistan
Recent activities
A Legal and Regulatory Assessment for electricity market development in
Kyrgyzstan has been done and similar study for Tajikistan is in progress
An Assessment of Tariff and Social Safety programs in Kyrgyzstan and
Tajikistan is under way
EURASEC and CAREC are co-sponsoring partners of REMAP
A Regional Energy Market Workshop was conducted last month in Almaty
for designated members of energy market development working groups
from Kazakhstan, Kyrgyzstan, Tajikistan and UDC Tashkent (regional grid
operator)
Seminars on Power System Planning Model was conducted for national
transmission companies of Kazakhstan, Kyrgyzstan and Tajikistan, which
shared lessons from USAID Technical Assistance for similar work in South
East Europe and Black Sea region