Short-term power trade starts soon

India is soon going to start a short-term trade of 220-megawatt power with its three neighbours -- Bangladesh, Nepal and Bhutan.

Indian Energy Exchange (IEX) has already sent its proposal to the Central Electric Authority of India for approval to open the cross-border trade of electricity, according to diplomatic sources.

The IEX, an automated power trading exchange, plans to trade 120MW with Bhutan and 50MW each with Bangladesh and Nepal.

This four-nation power trading would expedite the implementation of the Saarc Framework Agreement for Energy Cooperation, signed in Kathmandu on November 27 last year.

Under the agreement, a Saarc Market for Electricity will be set up to promote regional power trade, energy efficiency, and energy conservation.

Bangladesh has been working on the agreement, to be tabled in the cabinet for approval shortly, according to diplomatic and government sources.

Currently, there are separate grids connecting India-Bhutan, India-Nepal and India-Bangladesh.

And India's power trading with Saarc members Sri Lanka and Pakistan will open after linking those countries in the grids. The India-Sri Lanka grid will be connected via undersea cables.

The implementation of the Saarc deal has been slower than India hoped due to some political issues in Nepal and the foot-dragging by Pakistan in approving the agreement, diplomatic sources in India said.

Bangladesh has been importing 500MW of electricity from India since October 2013 through the first ever 400KV double-circuit cross border grid between Baharampur, India and Bheramara of Bangladesh.

The two neighbours have finalised another deal, under which Bangladesh will import 100MW electricity from Tripura through a second cross-border grid to be set-up from Suryamaninagar, Tripura to Comilla in Bangladesh.

Officials of India, Bangladesh, Bhutan and Nepal met in New Delhi on January 30-31 and discussed power trade and connectivity. Diplomatic sources said the four-nation move will make it easier for all the Saarc nations to have a common power grid.

The meeting also agreed to jointly explore hydropower in the region and share electricity between the countries on an equitable basis.