Energy is essential requirement for economic growth, development, employment and modern life. Without ample energy or electricity, the vicious circle of poverty perpetuates. Two Central Asian countries Tajikistan and Kyrgyzstan are gifted with most abundant hydropower resources of the world; thereby having surplus supply of electricity during summer times.But the nearby South Asian states Pakistan and Afghanistan face chronic shortages and are ever busy in bridging gap between demand and supply. During peak summer in Pakistan, power cuts and load-shedding affects business and industrial production besides millions of masses living without electricity connection.
In this backdrop, Central Asia-South Asia Regional Electricity and Trade Project (CASA-1000) was started in May 2016. It is a US$ 1.17 billion project aimed at exporting 1300 MW surplus hydropower from hydroelectric dams of Tajikistan and Kyrgyzstan to Afghanistan and Pakistan in summer by setting up an institutional arrangements and transmission infrastructure. The project is taken as first step in creating Central Asia-South Asia Regional Energy Market (CASAREM).Being expected to be completed in 2023, CASA-1000 is being financed by seven institutions with major contribution of the World Bank. The backbone of this 1227 km long cross-border transmission project are three High Voltage Direct Current (HVDC) power converters stations that would enable the trade of 1300 MW(1000 MW to Pakistan and 300 MW to Afghanistan) clean energy between the regions. Being located at Sangtuda (1.3 GW) in Tajikistan, Peshawar (1.3 GW) in Pakistan and Kabul (300 MW) in Afghanistan, these converter stations would convert the power from alternative current (AC) to direct current (DC) and vice versa. Another main highlight of CASA-1000 project is Community Support Programme of US$ 70 million to address the basic needs and priorities of around 600 communities along the transmission lines in the project area. Allocation of US$ 30 million has also been made to control environmental effects. However, a critical feature of the project is its “Open Access” clause that allows facilitating supply of power from other countries of the region that expands trade opportunities well beyond the original summer period.
It is a US$ 1.17 billion project aimed at exporting 1300 MW surplus hydropower from hydroelectric dams of Tajikistan and Kyrgyzstan to Afghanistan and Pakistan in summer by setting up an institutional arrangements and transmission infrastructure
Harnessing hydel energy of Central Asia through CASA-1000 is a mutually beneficial initiative with a win-win situation for the participant countries, as under:
* The project is a source of revenues for Tajikistan and Kyrgyzstan that can be used in reducing acute winter electricity shortages.
* Energy shortfalls in Pakistan and Afghanistan during summer time (defined as May 1 to September 30) can be eased.
* Dependency on costly and polluting oil-based energy would be reduced.
* Community support programme would help in alleviating poverty and preserve its safe operations.
* Afghanistan can serve as a viable transit country that would enhance its growth and stability.
* The project would pave the way for successful functioning of Central Asia-South Asia Regional Energy Market (CASAREM) initiative.
* No new power plants are required to be built in this project that entails low capital cost.
* CASA-1000 would certainly contribute to reduction of carbon dioxide emissions due to its clean energy.
* The project risks are lowered as it is adequately backed by the guarantees of the government of Pakistan. Afghanistan, Tajikistan and Kyrgyz Republic.
An impression is there why Pakistan is persisting with this project when its ownhydro-electricity generation has increased by over 9000 MW and with more hydropower projects in line, Pakistan would be at energy surplus stage soon. But, we must remember that the project is backed by sovereign guarantee and was signed at time when the country was facing acute power crisis. Then, water resources of Pakistan are also subject to climatic cycle and insufficient storage capacity.
In a prudent move, Mr. Omar Ayub Khan, Federal Minister for Energy,has steered the power division to invoke “Open Access” clause of the project that can enable Pakistan to export its currently available surplus electricity during winter to Tajikistan, Kyrgyzstan and Afghanistan by using the same structure of CASA-1000 project. All three member countries confront severe power shortage during frigid winter.Pakistan has formally taken up this matter with the member countries to ensure that the deal is reviewed under open access clause for two-way electricity supply.
Above analysis manifests that CASA-1000 is a glaring instance of regional cooperation. Once operational, it would evidence how regional interdependence can contribute to shared prosperity, poverty alleviation and stability. Success of this project would boost large scale regional economic connectivity under Belt and Road initiatives like CPEC.
The writer is Country Manager of a Pakistani bank in Kazakhstan, with interest in Central Asian studies. He can be reached out at rafeeq_kz @yahoo.com