CASA-1000 Countries Sign General Agreement, Power Purchase Agreement
Sunday 26 April 2015, by
BISHKEK (AKIpress) – A meeting of the Intergovernmental Council of CASA-1000 project signatories took place in Istanbul on April 24. During the meeting, the members of CASA-1000 project signed by the main agreements – the general agreement and the power purchase agreement between the business entities in Kyrgyzstan, Tajikistan, Afghanistan, and Pakistan.
The Central Asia South Asia Electricity Transmission and Trade Project CASA-1000 includes construction of a high-voltage power line linking the power systems of the Kyrgyz Republic and Tajikistan with Afghanistan and Pakistan to allow the Central Asian countries to export electricity and develop appropriate instruments and mechanisms for electricity trade that meet international standards.
The core project agreements consist of Four Power Purchase Agreements (PPAs) between respective countries; a Master Agreement between all four parties; an Account Bank Agreement; Technical Code; Co-ordination Agreement between Kyrgyz Republic and Tajikistan and Host Government Agreements.
The tariff components of CASA 1000 project consist of:
- transmission tariff payback of investment costs to Tajikistan, Kyrgyzstan, and Afghanistan, AC & DC O&M cost, community support fund and common fund;
- cost of energy payable to the sellers;
- transit fee to be paid to Afghanistan.
The estimated transmission tariff is ¢2.98/kWh; the energy tariff is ¢5.15/kWh and the Afghan transit fee is at ¢1.25/kWh. According to sources, all outstanding issues were resolved in the JWG/IGC meeting in Istanbul early December 2014 followed by the LSC/JWG meeting in Bishkek in February 2015.
The CASA-1000 transmission project envisages the transportation of surplus electric power available in summer months (May 1 to September 30) from Kyrgyz Republic and Tajikistan to Afghanistan and Pakistan. The project will comprise the development, financing, construction, ownership and operation of the following AC and DC facilities:
- a 750 km high voltage direct current transmission system between Tajikistan and Pakistan via Afghanistan together with associated converter stations at Sangtuda (1,300 MW), Kabul (300 MW) and Peshawar (1,300 MW). Pakistan has decided to increase capacity of converter aimed at getting electricity over and above 1000 MW in case Kabul does not use its entire share of 300 MW;
- 477 km 500 kV alternating current link between the Kyrgyz Republic (Datka) and Tajikistan (Khoujand);
- AC system upgrades necessary to safely and reliably accommodate the AC and DC Facilities and the associated power flows.
The CASA-1000 Transmission line to Peshawar would be capable of delivering 1300 MW (1,000 MW is Pakistan’s share and 300 MW is Afghanistan’s share however, the Afghan share may be available for Pakistan as Afghanistan may not need the power in near future). The exporting countries (Kyrgyz Republic and Tajikistan) have conveyed that they will be able to deliver 4,000 GWh of energy in a normal year and 4,434 GWh in a wet year.
The estimated cost of the CASA-1000 project is $1.170 bln including $208 mln IDC & taxes-but the final cost will be determined through a competitive bidding process. This includes the estimated cost of $200 mln required for the Pakistan portion of the DC transmission line and converter station.