Cross Border Power Trade and Future Energy Markets

June 16, 2020

Side Event

To build on the move to multilateral markets in Asia, USAID India and USAID RDMA are organizing a side-event for ACEF 2020, including facilitating bilateral trade and development of domestic power markets which are foundational. Considerable political, institutional and technical barriers still exist to increased bilateral power trade in the region. In Asia, competitive markets exist only in India and the Philippines, while Vietnam plans to launch its wholesale market in 2021. In addition, power markets are often not designed to facilitate variable renewable energy investment, which limits not only the ability of a country to achieve its energy objectives, but also opportunities for variable renewable energy to contribute to increased power trade.

The event will weave two-themes i.e. 1. Exploring opportunities and approaches to address the political, institutional and technical barriers to increasing bilateral and multi-lateral power trade; and 2. Designing power markets and power pools to enable large scale VRE integration and enhance multilateral power trade. The discussion will focus on lessons learned in the region from detailed analyses and case studies conducted by USAID, IEA and others on the current situation in South East and South Asia with regard to: cross-border power trade opportunities;

existing barriers to trade, such as coordinated generation and transmission planning; harmonization of codes, policies and regulations. It will also discuss the need to advance transmission interconnections, and steps to facilitate investments to support bilateral and regional power trade opportunities and establish power markets in the region. This will include how power exchanges can provide opportunities for multilateral power trade. It will also offer perspectives on the impact of renewable technology on electricity markets and pathways to design/redesign power markets (day-ahead, real time and ancillary) to increase power trade by taking advantage of the inherent flexibilities afforded by RE.

The case studies will highlight the value proposition for spot (energy imbalance) market participation and the impacts of spot market participation on utility investment. Similar case studies from developing economies like India will highlight the ongoing transition and provide examples for other countries in the region. The case study presentations will be followed by a moderated expert panel discussion on designing power markets and power pools to enable power trade and large scale VRE integration.

Background

• Explore opportunities to address political, institutional and technical barriers to increased bilateral and multilateral power trade.

• Raise awareness of how these markets can enhance opportunities for developing VRE and how VRE can facilitate increased power trade in Asia.

Objective

Welcome RemarksMichael Satin, Director - Clean Energy and Environment Office (CLEEO), USAID/India

Case Study 1: Overcoming barriers to power trade and regional markets in South East AsiaRandi Kristiansen, Economics and Financial Analyst – Clean Electricity, International Energy Agency (IEA)

Case Study 2: Cross border electricity trade in South Asia: Transitioning from bilateral to multilateral trade (Including power markets)Rajiv Ratna Panda, Head-Technical, SARI/EI, IRADe

Case Study 3: Redesigning the Power markets: An enabler to RE Integration and multilateral tradeAnish Mandal, Electricity Markets Lead, USAID’s GTG-RISE Initiative and Director, Deloitte India

Wrap-up and closing remarks by USAID

Moderated Expert Panel DiscussionMichael Satin, Director, Clean Energy and Environment Office, CLEEO, USAID/India (Moderator)1. Matthew Wittenstein, Chief of Section, Energy Connectivity, ESCAP2. Peerapat Vithaysarichareon, System Integration of Renewables, IEA3. S.K. Chatterjee, Chief of Regulatory Affairs, CERC, Government of India4. Rajesh Mediratta, Director, Indian Energy Exchange (IEX)5. Shubhranshu Patnaik, Senior Advisor, USAID GTG-RISE Initiative and Partner at Deloitte India

Agenda Date: June 16, 2020 (Tuesday)-Time: 8 - 9:30 pm Manila Time (PST) / 7 – 8.30 pm Bangkok Time / 5.30 – 7 pm IST / 8 - 9.30 am EDT

Registration Link https://zoom.us/webinar/register/WN_NKVnyf3HQsGU_cZQqoGpBA

Matthew WittensteinChief of Section, Energy Connectivity, UN ESCAP

Matthew Wittenstein leads work on power sector connectivity in the energy division of UN Economic and Social Commission for the Asia Pacific (UN ESCAP). From 2014 to 2019, Matthew was a Senior Electricity Analyst in the International Energy Agency (IEA), where he focused on the economics of generation, the challenges of encouraging investment in clean energy technologies, and electricity market design. He also led the IEA’s work on cross-border electricity security, including the publications “Establishing Multilateral Power Trade in ASEAN” and “Integrating Power Systems Across Borders”. Prior to joining the IEA, Matthew was a Fellow in the US Department of Energy’s International Climate Change Office, where he supported the Clean Energy Ministerial. Mr. Wittenstein holds a Master of International Affairs from Columbia University, with a concentration in international economic policy.

Michael Satin Director, Clean Energy and Environment Office, CLEEO, USAID/India (Moderator)

Michael Satin joined the USAID Foreign Service in early 2005. He is trained as an ecologist (B.S. - San Francisco State University) and applied economist (M.Sc. - University of West Virginia). He has worked in international affairs and development for 22 years, in both short and long-term assignments in Senegal, Mali, Benin, Chad, Kenya, Madagascar, Nigeria, China, Southeast Asia (Thailand and ASEAN), Rwanda, the Democratic Republic of the Congo (DRC), Guinea, Afghanistan, Bangladesh and India. Prior to joining USAID, Michael worked as a consultant, technical advisor and manager. In the 1990s, Michael was a part of humanitarian and post conflict efforts with Food for the Hungry International in the DR Congo following the Rwandan genocide and during the Congolese civil war and Catholic Relief Services in Madagascar. He is currently the Director of Clean Energy and Environment at USAID/India.

Randi Kristiansen Economics and Financial Analyst-Clean Electricity, IEA

Randi Kristiansen is working in the Gas, Coal and Power division in the IEA as an Economics & Financial analyst where she works with power system flexibility, market reform and cross-border (within countries and between countries) trading. Her focus is on Asia in general where focus areas include ASEAN, China and India. Before joining the IEA, she has spent 10 years trading power, coal, gas and electricity certificates in various European markets, as well as structuring corporate PPA’s for renewables. She managed a portfolio of more than 1500 MW of wind in Scandinavia, where she was in charge of forecasting and associated imbalances of both and RE portfolio as well as a consumption portfolio. After trading she joined the Danish Transmission System Operator, where she worked in the market development department. She has been involved in creating methodologies for transmission capacity calculation, financial long-term transmission rights and setting up the Nordic Regional Security Coordinator. Randi Kristiansen holds a master of Economics from Aalborg University, Denmark.

S.K. Chatterjee Chief of Regulatory Affairs, CERC, Government of India

Dr. Chatterjee has long experience of dealing with power sector reforms, especially, Regulatory Reforms since its inception in 1998. He is a post-doctoral research fellow at Harvard Kennedy School, USA. He has a PhD in Management and MBA in Finance. Dr. Chatterjee’s present academic and professional pursuits involve specialization in public policy and regulation with focus on renewable. He is/has been a Member of various Govt Committees: related to Renewable Energy constituted - by MNRE on Regulatory Aspects of RE, JNNSM; Committees constituted by Ministry of Power on Amendment to Act; legislative changes relating to RE; Committees by CERC/Forum of Regulators on Regulatory Issues and on Renewable/REC. He co-authored “The Electricity sector in India: Policy and Regulation” (Oxford University Press (OUP), 2012), and authored many other publications. He is/has been a guest faculty for various academic, research and training institutions like PMI, NPTI, IIM(A), IIT(K), UPES, IIT (Roorkee), TERI, MIT (USA), LSE (UK).

Rajesh Mediratta Director, Indian Energy Exchange (IEX)

Rajesh Kumar Mediratta has over 25 years of experience in apex organizations of India’s power sector. He was with Central Electricity Authority, the apex planning organization, for about 8 years as Assistant Director. He then worked with Regional System Operator for 10 years. He was instrumental in implementing new Settlement Systems at regional level as consultant to a State. He has played a key role in commencing the first power exchange in India i.e., Indian Energy Exchange and has been managing its Business Development. He has been with IEX since its inception in year 2007. His interests include power markets, retail competition, settlement systems and de-regulation of electricity sector across the globe. He has to his credit several papers on Power markets, commercial mechanism, power system operation and settlement systems presented at international and national conferences Mr. Mediratta holds a degree in Mechanical Engineering and is an MBA in Finance.

About the Speakers

Shubhranshu PatnaikSenior Advisor, USAID GTG-RISE Initiative and Partner, Power & Utilities Consulting, Deloitte India

Shubhranshu is the leader for the Power & Utilities sector in Deloitte India. He has over twenty four years of experience in power consulting spanning sector restructuring, business transformation, public-private partnerships, power markets and transition to clean energy. Shubhranshu was the Chief of Party for USAID’s GTG-RISE initiative until March 2019 and is currently a Senior Advisor to the program. He leads Deloitte’s focus on the Future of Energy encompassing Renewable Energy and its integration, the role of battery energy storage and digitalization of utilities. He holds an MBA with a finance concentration and an undergraduate degree in electrical engineering.

Peerapat Vithayasrichareon System Integration of Renewables, IEA

Peerapat leads the IEA analysis on the challenges and best practices in integrating renewable energy into the power system, covering technical, economic and institutional aspects. He leads grid integration analysis in many regions including China, India, Thailand and ASEAN. Prior to the IEA, Peerapat was a Senior Consultant at Intelligent Energy Systems, an energy consulting firm in Australia that provides energy modelling services. He was also a research fellow at the Centre for Energy and Environmental Markets at UNSW Australia, leading a project which examined the impact of high renewables in the Australian electricity sector. He has experience in power system operation and planning in Thailand. Peerapat holds a Ph.D. in Electrical Engineering from University of New South Wales, Australia.

Anish Mandal Electricity Markets Lead, USAID’s GTG-RISE Initiative and Director, Deloitte India

Anish is Director with the Power & Utilities Consulting in Deloitte. He holds a MBA in Finance from IIM Bangalore and B.Tech (Hons) from IIT Kharagpur. Anish has cross country experiences in more than ten (10) countries and is currently specializing in the area of Future of Energy/ New Energy viz. Battery Storage, EVs, Power Market Redesign and Renewable Integration. He has developed multiple simulation models, tools and IPs in these areas which are now being tested and implemented in global projects. He is pilot manager and is managing the regional power markets pilot implemented as part of GTG-RISE Initiative

Rajiv Ratna Panda Head-Technical, SARI/EI, IRADe

Mr. Rajiv Ratna Panda currently works as Head-Technical, USAID’s South Asia Regional Initiative for Energy Integration (SARI/EI), provides technical inputs/advice as well as the policy, regulatory, legal, market inputs/advice for enhancing Cross-Border Energy Trade (CBET), power system integration, regional power market design & development and energy security in South Asia (SA) & BIMSTEC region. He has rich & diverse experience and expertise in policy, regulatory harmonization, grid code, open access, trading License, investment policy, energy modeling, clean/renewable energy transition & energy market development. He was instrumental in developing Regional Regulatory Guidelines for CBET, conceptualizing/development of regional institutional mechanism. He has worked extensively with Energy/Power Ministries, Regulatory Commission, Power Utilities, Regional Institutions i.e. BIMSTEC, SAFIR, SAARC, development & donor community at large, policy & discussion makers in the region. He has been an avid reader & keen observer of energy cooperation & international relation in SA & ASEAN region, his interest includes understanding human endeavor for fundamental change in cross cutting area of energy, climate change & sustainable development with public policy focus. He is a trained electrical engineer with MBA (Energy)-major in finance. He also holds advanced Post Graduation in Engineering Management & in Power Transmission & Distribution Engineering.

The United States Agency for International Development (USAID) is the lead U.S. Government agency that works to end extreme global poverty and enable resilient, democratic societies to realize their potential. USAID is also working to support countries on a path to pursue clean energy growth, low-carbon development and energy cooperation to enhance energy security in the region. The USAID’s India mission Clean Energy & Environment office (CLEEO) through its Greening the Grid (GTG) program, a joint program with the Ministry of Power (MOP), aims to support large-scale integration of renewable energy. USAID/India is also implementing the South Asia Regional Initiative for Energy Integration (SARI/EI) program aimed at promoting cross-border power trade and regional power markets in South Asia. The GTG-RISE initiative is implemented by Deloitte LLP and SARI/EI by Integrated Research and Action for Development (IRADe).

The USAID Regional Development Mission Asia (RDMA) is working on regional energy cooperation and power trade in South East (SE) Asia, as well as promoting investment in renewable energy, through its USAID Clean Power Asia program. The CPA program, implemented by Abt Associates, works with Lower Mekong countries and other Association of Southeast Asian Nations (ASEAN) member states to encourage power sector investments in environmentally friendly, grid-connected renewable energy sources.

POC for the Event:Monali Zeya Hazra, USAID/Indiamhazra@usaid.gov

About the Organizers