Bangladesh

Energy security and climate change has become the one of the major concerns in the South Asian region. With Two-thirds of energy used in the South Asian Region (SAR) is mainly imported outside of the region and fossil fuels accounting for about 80 percent of energy production, transformational actions are needed to mitigate these energy and climate vulnerabilities.

Cross Border Electricity Trade (CBET) and regional electricity market can provide for an energy secure and climate prosperous South Asian region, therefore necessitating transformational action. A regional electricity market trading would bring cost optimization, enhanced energy security, and support regional economy for the South Asia countries. Further, trilateral, and multilateral power trade has the potential to accrue several benefits in terms of higher trade volumes, lower installed capacity and optimization of investment cost, lesser reserve capacity due to sharing of reserves, reduced greenhouse gas (GHG) emission and overall regional cost optimization and economies of scale.

Currently, CBET in the SAR is mostly in the form of bilateral trade. However, with the prospects towards substantial enhancement of cross border electricity trade in the region, the regional power trade market is expected to initially transition towards a trilateral model. Under this model, a third country offers wheeling facilities for the buyer and seller countries otherwise not directly interconnected.

In this context, the South Asia Group on Energy (SAGE) at RIS along with South Asia Regional Energy Partnership (SAREP) Program of USAID organised a Closed-Door Roundtable and a South Asia Regional Workshop on “Transforming Cross Border Electricity Trade and Regional Electricity Market for an Energy Secure South Asia” between 30th June 2024 and 1st July 2024 in Dhaka, Bangladesh.

On 30th June 2024 (Sunday), a Closed Door Session on “Developing BBIN Sub-Regional Cross Border Transmission Infrastructure Interconnection Plan” was organised at The Westin, Dhaka, which saw participation and discussion among the key speakers from the utilities and government departments of Bangladesh, Bhutan, India, and Nepal. The meeting was chaired by Mr. R V Shahi, Chairman SAGE-RIS, and saw a presentation delivered by Mr. Karma Namgyel Principal Engineer (Power System Specialist), Department of Energy (DoE), Ministry of Energy and Natural Resources, Royal Government of Bhutan, on the opportunity and challenges for developing sub-regional cross border transmission interconnection infrastructure and building a South Asia (BBIN) Regional Transmission Interconnection Plan.

This was followed by the delegates discussing important discussion points on the transmission infrastructure necessary to enable trilateral and multilateral CBET, and the considerations of commercial, technical and policy requirements for it. This was followed by a high-level networking dinner with the participation of representatives from Bangladesh’s power sector, multilateral institutions working with the country’s power sector, and the counsellors from the embassies of Nepal and Bhutan.

On 1st July 2024, the South Asia Regional Workshop on “Transforming Cross Border Electricity Trade and Regional Electricity Market for an Energy Secure South Asia” was organised. The event saw high level participation and a big turnout, including the Ambassador of the United States of America to Bangladesh H.E. Mr. Peter Haas, Indian High Commissioner to Bangladesh H.E. Mr. Pranay Verma and Member of National Assembly and former advisor to the Prime Minister of Bangladesh Mr. Abdul Kalam Azad.

Senior officials of power and energy departments of BBIN countries, SAGE-RIS, and USAID India and USAID Bangladesh actively participated in the workshop. The inaugural session started with a welcome address and context setting by Mr. R V Shahi, Chairman, SAGE-RIS with his address on the role of cross border electricity trade and electricity markets in promoting regional energy cooperation in South Asia. This was followed by special address by H.E. Ambassador Mr. Peter D. Haas, United States Ambassador to Bangladesh, US Embassy, Dhaka, Bangladesh, and H.E. High Commissioner Mr. Pranay Kumar Verma, High Commissioner of India to the People’s Republic of Bangladesh.

The event’s keynote address was delivered through a video message by Mr. Nasrul Hamid, MP, Honourable Minister of State, Ministry of Power, Energy and Mineral Resources, Government of Bangladesh.

Mr. Reed Aeschliman, Mission Director, USAID/Bangladesh, delivered the Vote of Thanks.

The three technical session of the workshop following the inaugural witnessed detailed discussions on identifying the prospects, opportunities and challenges of transforming CBET and regional energy market, the opportunities, challenges and strategy for developing a South Asia (BBIN) regional cross border transmission interconnection infrastructure to facilitate the transition to trilateral/multilateral CBET, and Bangladesh’s perspective and regional level takeaways on participation in India’s power exchange platform.

Working Session, I was chaired by Mr. Md. Habibur Rahman, BPAA, Senior Secretary, Power Division, Ministry of Power, Energy and Mineral Resources, Government of Bangladesh. The session saw presentations on country perspectives from the participants from BBIN nations, represented by Mr. Md. Mahbubur Rahman, Chairman BPDB, Mr. Karma Namgyel of the Ministry of Energy and Natural Resources, Government of Bhutan, Mr. Rajib Sutradhar, ED of GRID INDIA, and Mr. Dinesh Ghimire, Former Secretary of Ministry of Energy, Water Resources and Irrigation, Government of Nepal. The session also saw a presentation on the South Asian Regional Perspective on “Enhancing Regional Energy Security by Transforming Cross Border Electricity Trade and Regional Electricity Markets in South Asia” by Mr. Rajiv Ratna Panda, Regional Energy Trade Lead, USAID-SAREP.

Working Session II was chaired by Mr. R V Shahi, Chairman SAGE-RIS, and saw discussions on opportunities, challenges, and strategy for developing a South Asia (BBIN) regional cross border transmission interconnection infrastructure that facilitates the transition to trilateral/multilateral CBET. The session saw a presentation by Mr. Karma Namgyel from Bhutan on the subject. This was followed by a high-level panel discussion led by Mr. Shahi that included representatives from BBIN countries and SAGE-RIS members, represented by Mr. Azad, Mr. Mohammad Hossain, DG PowerCell Bangladesh, Mr. AKM Gause Mohiuddin Ahmed, MD of PGCB, Mr. Ashok Pal, COO of CTU India Limited, Mr. Namgyel, SAGE-RIS Members Mr. Deepak Amitabh and Mr. Ajay Shankar, and Mr. Chandan Kumar Ghosh, Director with Nepal Electricity Authority.

Working Session III was chaired by Ms. Dilara Begum, Joint Secretary Development-3, Power Division, Ministry of Power, Energy and Mineral Resources, Government of the People’s Republic of Bangladesh. The session focused on understanding the perspectives of Bangladesh on participating in India’s power exchange platform. A report prepared by USAID-SAREP and Bangladesh Advancing Development and Growth through Energy (BADGE) on roadmap for Bangladesh to participate in the regional power market (day ahead market) was presented, followed by a panel discussion comprising of Mr. AK Mahmud from BADGE, Mr. Sonam Gyeltshen from Ministry of Energy and Natural Resources, Government of Bhutan, Mr. Rohit Bajaj, Director IEX India Limited, and Mr. Chandan Kumar Ghosh. Working Session IV saw the workshop being concluded, with Ms. Monali Zeya Hazra, Senior Regional Energy Specialist, IPO, USAID, sharing the key takeaways of the workshop based on the event’s working sessions.

Some key takeaways were a) Clean Energy Transition is possible ONLY with regional energy cooperation and sub-regional energy partnerships b) Energy cooperation and cross border electricity trade (CBET) is an attractive economical proposition in South Asia to utilize untapped renewable energy sources and enhancing energy security c) CBET dependency provides better energy security compared to fossil import Dependencies d) There is a need to develop a Common South Asia regional power pool and a regional electricity trading platform for South Asia e) Additional cross border transmission interconnection has to be built to fully realise cross border electricity trade potential and regional power market and f) There is a need for regional forum for system planners and transmission utilities for coordinating power system planning and system operation as well as sharing knowledge and building capacities. Mr. Rohit Pathania, Regional Energy Manager, USAID-SAREP, delivered the vote of thanks.