Cross-border trade of electricity is nothing new. It has been happening for some time now through bilateral agreements, memorandum of understandings or power trade agreements between the two countries. But the recent developments in Bangladesh has once again generated the debate on the policy side and the element of risk involved for the players involved, this and more in the latest episode of Energonomics.

In order to facilitate and promote cross-border trade of electricity with greater transparency, consistency and predictability in regulatory approaches across jurisdictions and minimise perception of regulatory risks, the guidelines on cross-border trade of electricity 2016 were issued by the Ministry of Power in December 2016.

After receiving inputs from various stakeholders, a need was felt to revise the same. Accordingly, new guidelines were issued in 2018.

Most, most recently on August 12, prompted by the developments in Bangladesh, the Union government further tweaked the power trade norms to protect the interests of the local players selling electricity to the neighbouring countries. It allowed power exporters to reroute their supplies to the Indian grid in case there was a delay in payment from the partner countries. Indian entities supply about 2656 megawatts to Bangladesh.

What is the current situation, and what is the way ahead for both India and Bangladesh on this issue?

Richa Mishra explains this and more in this episode of Energonomics.

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Published on September 14, 2024