The article highlights the potential and challenges of cross-border electricity trade (CBET) in South Asia, focusing on the collaboration between India, Nepal, Bhutan, Bangladesh, and Sri Lanka. It underscores the benefits of interconnected power systems, such as optimizing surplus electricity, reducing costs, and enhancing energy reliability.
Key Points:
• Benefits of CBET: Nepal and Bhutan can export surplus hydropower during the monsoon, while India and Bangladesh benefit during high-demand seasons which happens to be the same period when there is surplus power in Bhutan and Nepal.
• Recent Developments: India agreed to import 10,000 MW of power from Nepal over 10 years, and facilitated 40 MW of power transfer from Nepal to Bangladesh.
• Challenges: Effective CBET requires robust infrastructure, harmonized market rules, unified grid codes, and strong policy support.
Future Opportunities:
• Expanding CBET to BIMSTEC countries and integrating renewable energy can transform South Asia into an efficient power market, promoting regional energy security and economic growth.
