In September 2022, during the visit of Prime Minister Sheikh Hasina to India, Bangladesh made a request to import power from Nepal and Bhutan through India. The Nepal Electricity Authority (NEA) has requested authorization from the Indian regulatory bodies to export 40-50 MW of electricity to Bangladesh by utilizing India’s current transmission infrastructure.
Hence, in the context of Bangladesh-Nepal energy cooperation, the term “BIN approach” refers to a trilateral strategy involving Bangladesh, India, and Nepal. By putting in place transnational energy initiatives, infrastructure, and transmission networks, it focuses on making the most of the region’s energy potential. For the benefit of Bangladesh and Nepal, the strategy aims to boost power commerce, create hydropower projects in Nepal, upgrade transmission infrastructure, integrate power grids, support renewable energy initiatives, assure policy and regulatory cooperation, and promote regional energy integration.
Moreover, during August 2022, the governments of Bangladesh and Nepal reached a mutual agreement to formally request India’s permission for the exportation of 40-50 MW of electricity from Nepal to Bangladesh. This proposal would be implemented in the initial phase, utilizing the high-voltage Baharampur-Bheramara cross-border power transmission link. According to the consensus reached by the Joint Steering Committee (JSC) at the secretary level, which was established for the purpose of facilitating energy cooperation between Nepal and Bangladesh, the Nepal Electricity Authority (NEA) and the Bangladesh Power Development Board (BPDB)have made a request to India for a trilateral agreement on the sale and purchase of energy, utilizing the power line.
Collaborative Relationship
As a nation without direct access to the sea, Nepal’s strategy to export its electricity to countries beyond India necessitates a strong collaborative relationship with India. As per the Central Electricity Regulatory Commission (CERC) of India, cross-border trade is permissible in cases where India is a participant. The tripartite agreement contains a distinct provision that enables the Indian authority to execute the framework of bilateral agreements between the Government of India and the governments of the respective neighboring countries. To clarify, it is necessary for Bangladesh and Nepal to establish formal agreements with India to facilitate the exchange of electricity across their respective borders.
India is currently contemplating proposals put forth by Nepal and Bangladesh, which suggest the possibility of enabling Kathmandu to vend electricity to Bangladesh through Indian territory and infrastructure. Consequently, the matter of a “power corridor” has initiated renewed discussions in the context of the bilateral relations between Bangladesh and India.
On May 16, the administrative building of the Payra 1,320 MW power plant in Patuakhali district hosted the 5th meeting of the Bangladesh-Nepal Joint Steering Committee on Enhancing Cooperation in the Power Sector. During the meeting, the delegations of Bangladesh and Nepal were led by their respective Power Division Secretary, Habibur Rahman and Power, Water Resources, and Irrigation Secretary, Dinesh Kumar Ghimire.
During the meeting, various matters were deliberated upon, such as the establishment of hydropower plants in Nepal through collaborative investments by Bangladesh and Nepal, the importation of electricity from Nepal via pre-existing interconnection grid lines that traverse India, and the construction of novel transmission lines. During the meeting, it was communicated that certain segments of the recently proposed transmission line would be erected within the jurisdiction of Indian territory. Consequently, the issue would be resolved through the trilateral accord between Bangladesh, India, and Nepal.
The imperative for Bangladesh is to shift from traditional energy sources towards more sustainable alternatives in order to guarantee its energy security and ensure long-term sustainability. The potential for cross-border energy cooperation and the revitalization of the power corridor concept may offer a viable solution for Bangladesh to address its energy crisis.
Renewable Energy
India and Bangladesh have expressed their desire to significantly augment their proportion of renewable energy in the forthcoming years. The Indian government has established a lofty objective of producing 500 GW of energy from non-fossil fuel sources by the year 2030, thereby fulfilling half of the nation’s energy needs through renewable sources. Similarly, Bangladesh aims to enhance the proportion of renewable energy sources in the nation’s energy portfolio to approximately 40 percent by 2050, which is currently less than three percent. Nepal, a country with abundant water resources, has the potential to assist both nations in realizing their aspirations.
The region situated in the Northeastern part of India serves as the primary center for augmenting the country’s renewable energy potential. It is imperative for India to explore the untapped natural resources in the Northeastern region. Bangladesh possesses the capacity to provide numerous avenues for electricity transmission. Arunachal Pradesh possesses a hydroelectricity potential of 50,000 MW. As per the Indian North Eastern Electric Power Cooperation, the Northeastern region of India exhibits a capacity to generate approximately 58,971 MW of power, which accounts for nearly 40 percent of the total hydropower potential of the country.
The Indian government is currently devising plans to investigate the full range of hydropower possibilities in Arunachal Pradesh and other states located in the Northeastern region of the country. India’s potential has been limited by geographical barriers. Having a surplus would enable it to promote cooperation between Bangladesh and Nepal in order to support the neighbors for their own good. Since these two nations are already a significant market for Indian business, greater electrification stability can facilitate greater development, which in turn makes the region more economically stable.
Besides, India could potentially leverage the power corridor of Bangladesh as a means of cost reduction. In the year 2021, Bangladesh expressed its keenness in the power corridor and anticipated receiving a proportion of 20-25 percent of the hydropower that is slated to be conveyed through the high-voltage gridline traversing its jurisdiction. The transmission line is expected to have a capacity of 6,000 MW in Bangladesh.
Energy Collaboration
The potential allowance of the power corridor from India to Bangladesh for the importation of electricity from Nepal has the potential to initiate a novel period of energy collaboration between the two nations. It is imperative for both Bangladesh and India to collaborate in order to strengthen their respective energy security through reciprocal measures, thereby fostering greater regional cooperation within South Asia.
The BIN strategy entails leveraging the energy capacity of the region by establishing transnational energy initiatives, infrastructure, and transmission systems. The aforementioned statements acknowledge the advantages of collaborative resource sharing and cooperation within the energy industry to tackle the increasing energy requirements of both nations and foster sustainable growth. Furthermore, the Bangladesh-Nepal Energy Cooperation, utilizing the BIN approach, encompasses several crucial elements and endeavors.
Bangladesh and Nepal are exploring means to enable the transfer of electricity between their nations in order to fulfil their individual energy demands. This initiative is aimed at enhancing their power trade. The process entails the creation of transnational transmission infrastructure and the formulation of power purchase agreements to facilitate the cross-border trade of electricity between the two nations. It will eventually pave the way to attain stable economies in the region and all the three parties can extract good out of it.
The Bangladesh-Nepal Energy Cooperation, which employs the BIN approach, aims to establish a durable understanding between the two nations, capitalizing on their respective competencies and assets in the energy domain where India can be a trustworthy friend to ensure the development of the region. The objective of this initiative is to bolster energy security, encourage sustainable development, and stimulate economic growth in Bangladesh and Nepal through the promotion of regional energy integration. And in return, India can emerge as a regional power to facilitate the energy domain of the region in terms of connectivity.(Eurasia Review)
The writer is a Research Associate at the Centre for Bangladesh and Global Affairs (CBGA)
Syed Raiyan Amir