How Would Cross-Border Electricity Trade Stimulate Hydropower Development in South Asia?

39 Pages Posted: 28 Aug 2018

See all articles by Govinda R. Timilsina

Govinda R. Timilsina

World Bank - Development Research Group (DECRG)

Date Written: July 10, 2018

Abstract

This study examines the importance of enhancing the cross-border transmission interconnections and regional electricity trade to promote hydropower in the South Asia region and quantifies the potential of hydropower development and trade under alternative scenarios. While South Asia is endowed with large (>350 gigawatts) hydropower potential, only around 20 percent has been exploited so far. This study shows that development of regional electricity markets through expanded cross-border transmission interconnections and regional electricity trade agreements is needed to benefit the region from the exploitation of the untapped hydropower resources. It also finds that development of hydropower in the region would increase by 2.7 times over the next two decades if the region could facilitate an unconstrained flow of electricity across the borders in South Asia. If a moderate carbon tax is added on top of that, hydropower capacity in 2040 could be more than three times as high as the current level.

Keywords: Water and Energy, Renewable Energy, Hydro Power, Rural and Renewable Energy, Energy Policies & Economics, International Trade and Trade Rules, Climate Change Mitigation and Green House Gases, Power & Energy Conversion

Suggested Citation

Timilsina, Govinda R., How Would Cross-Border Electricity Trade Stimulate Hydropower Development in South Asia? (July 10, 2018). World Bank Policy Research Working Paper No. 8513. Available at SSRN: https://ssrn.com/abstract=3238353

Govinda R. Timilsina (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

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