Key Points from SARI/Energy Maldives-Submarine cable Interconnection – Pre Feasibility study:

Following are the findings of a pre-feasibility study of Submarine cable interconnection in greater Male region (stretching from Thilafushi to Hulhumale) in 2010. A detail feasibility study is still pending for this huge investment with negligible financial return. But it is an investment that is desperately needed for continued power supply with in next couple of years.

Greater Male Region:

1. Thilafushi – Villigili : 3.4km, Villigili – Male: 1.5km, Male – Hulhumale: 1km
2.  Installed total capacity in the Male region: 46.16MW,  with dependable capacity  of 41.544MW
3. Thilafushi has private power producers in addition to STELCO plant
4.  In 2009 demand load in Male’ rose beyond the dependable capacity
5. The demand growth of the region is approximately 11% per year
6.  Even with the addition of the 3x8MW diesel units in 2010 and 2011, Male’ would run out of capacity by 2015 as the older units start to retire.
7.    The rapid pace of development on Hulhumale’ will use up the available supply capacity by 2010 and significant generation additions would be required
8.  Villigili has sufficient to last until 2020 when the existing units will start to be retired
9. Thilafushi will run out of  capacity in 2010 and generation additions will be required to meet both only the growth of the existing load but also to take over the industrial load now served by captive generation
10. Three options for interconnection were suggested and tentative price was estimated
• Scenario 1: Build generation capacity in Hulhumale for the future demand of Thilafushi, Villigili, Male and Hulhumale’ (which would amount to additional 110MW build up in Hulhumale by 2030 while most generators in other islands would retire).  The connections are made by laying dual cable as a fail safe.
•  Scenario 2: Build generation capacity in Hulhumale and Thilafushi for the future demand of Thilafushi, Villigili, Male and Hulhumale’ (which would amount to additional 63.2MW build up in Hulhumale and 46.8MW in Thilafushi by 2030 while most generators in other islands would retire). The connections are made by laying dual cable as a fail safe.
•  Scenario 3: Build generation capacity in Hulhumale and Thilafushi for the future demand of Thilafushi, Villigili, Male and Hulhumale’ (which would amount to additional 77.6MW build up in Hulhumale and 46.8MW in Thilafushi by 2030 while most generators in other islands would retire).
11.   Cost of scenario 1 and 2 is estimated to be USD 63.3 Million
12.  Cost Scenario 3 is estimated to be USD 43.7 Million, but this scenario requires additional installation of 16 MW in each island in case of cable outage. This is an additional capital cost of about USD 40 million. 
13. 5 US cents increase in tariff for transmission system to cover capital cost as well as O&M cost

Environmental considerations:

·         There is no significant environmental impact if the project proceeds with the proper regulations and conditions. Environmentally it helps by optimizing power generation efficiency and helps towards carbon neutrality by providing more opportunities for different RE power generation considered in Carbon Neutral paper. Calculations in  Carbon Neutral Paper by Dan Morrel (which was used as a basis of carbon neutrality policy announcement) was revised from USD 1.1 Billion  to USD 2.3 Billion