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Cross Border Trade of Electricity: Existing Scenario and Opportunities for India

In: Economics and Policy of Energy and Environmental Sustainability

Author

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  • Atul Agrawal

    (An autonomous society under Ministry of Power, Government of India)

Abstract

South Asia has diversified energy resources widely spread over different countries. India is the leading nation in the region. The nation has adequate fossil fuel reserves and high renewable energy potential to generate electricity. India’s surplus power generation installed capacity can fulfill the electricity demands of neighbouring nations. Historically, India started the exchange of electricity with neighbouring nations around fifty years ago. The import and export of electricity have remained bilateral under Government to Government negotiations. Being a net exporter of electricity, today India has cross border transmission interconnections with Bhutan, Nepal, Bangladesh and Myanmar. The country has also notified the cross border trading guidelines and regulations under the SAARC framework. The present paper discusses these evolutions before providing a future glimpse. Existing and planned transmission interconnections between neighbouring countries are expected to develop a regional grid which is expected to upsurge the economies of member nations as higher access of electricity will ensure the development. Optimum utilisation of resources and economy of scale will further lower down the cost of electricity. Share of renewable energy will increase the overall energy consumption and thus carbon footprint of the entire region will be reduced.

Suggested Citation

  • Atul Agrawal, 2022. "Cross Border Trade of Electricity: Existing Scenario and Opportunities for India," Springer Books, in: Narendra N. Dalei & Anshuman Gupta (ed.), Economics and Policy of Energy and Environmental Sustainability, pages 169-191, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-5061-2_9
    DOI: 10.1007/978-981-19-5061-2_9
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