Electricity prospects brighten on Saarc deal
A power deal signed by Saarc countries in Kathmandu yesterday has raised hopes for cross-border electricity trade among the South Asian nations through a common grid.
Once the network comes into being, power-starved countries like Bangladesh will be able to import surplus electricity of their neighbours.
Officials said the deal would further strengthen regional cooperation in the power sector and allow Bangladesh to import electricity from neighbouring countries such as Nepal and Bhutan that have immense potential in hydropower.
Bangladesh now imports 450 megawatts of electricity from India through a bilateral arrangement.
Under the Saarc (South Asian Association for Regional Cooperation) power deal, the member states will enable their buying and selling entities to negotiate the terms, conditions, payment security mechanism and tenure of electricity trade.
The Saarc Framework Agreement for Energy Cooperation (Electricity) was signed at the closing ceremony of the 18th summit of the eight countries' regional bloc.
The countries will work for exempting duties, levies and fees on export and import for cross-border trade and exchange of electricity, the agreement said.
They will now draw a plan on how to set up cross-border grid connections through a study and by sharing technical information.
Member states will enable their transmission agencies to build, own, operate and maintain the associated transmission systems of cross-border interconnection, according to the draft of the agreement.
The countries will jointly develop a coordinated network for cross-border interconnection to ensure reliability and security of the grids of the countries.
If any dispute arises regarding interpretation and implementation of the agreement, it will be resolved amicably among the member states. If unresolved, the countries may choose to refer the dispute to the Saarc arbitration council.
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