Cross-border energy cooperation has been taking place in many South Asian countries for a long period of time. Bangladesh and India -- two South Asian neighbours have also been enhancing their ties over the time in different cooperation agreements, but the Indo-Bangla ties on the energy sector is something unique.
Over the time, the relationship has expanded further with India continuing to support Bangladesh in not only meeting its power supply requirements, but also in the field of enhancing grid connectivity, construction of power plants and through supply of coal when needed.
India is known to be a friend of Bangladesh since 1971. While both countries engaged in different partnerships in the last five decades, their partnership in the field of electricity began just around a decade ago -- in 2013. The year of 2013 was just a beginning when India first imported electricity to Bangladesh, and over the time the cooperation in the energy sectors has risen manifold.
There are already many existing ties between the two countries, and analysts consider the energy cooperation partnership as economically beneficial for both sides. Both sides are also exploring partnerships in the field of different renewable energy projects including solar and wind power, and also in infrastructural development in Bangladesh.
The energy cooperation between Bangladesh and India began in 2010 when both countries signed a state level agreement with regard to the electricity sector. A joint working group was formed under the agreement for electricity production, improvement of transmission system, improving energy efficiency, renewable energy, and grid connectivity.
Initially the mutual agreement began with a 250MW electricity export to Bangladesh, and today with renewed partnership, Bangladesh imports 1160MW of electricity from India.
Both the countries, in a joint venture, are also developing a 1320MW power plant in Rampal of Bangladesh under a power sharing agreement between the Indian statutory corporation NTPC Limited and Bangladesh India Friendship Power Company Limited (BIFPCL). The plant, commonly known as Maitree Super Thermal Power Project, has two units each with 660MW production capacity. The plant is expected to launch its test run and commercial operation this year.
A joint venture called Reliance Bangladesh LNG & Power (RBLPL), in which Reliance Power owns 51% stake and JERA owns 49% stake, is developing a 745MW liquefied natural gas (LNG)-fired combined-cycle power plant in Bangladesh. The project is India’s largest foreign direct investment (FDI) in the Bangladesh power sector.
A 1600MW coal-fired power plant in the Indian state of Jharkhand is expected to export electricity to Bangladesh by the end of this year. Bangladesh is set to import electricity from the plant, developed by Adani Group, over the period of next 25 years.
India’s contribution for the LNG sector is also underway in the discussion stage.
In terms of tapping the prospects of wind power generation, a consortium of Bhagwati Products Ltd (India), Regen Powertech Private Ltd (India) Siddhant Wind Energy Pvt Ltd is setting up a 30MW wind power plant in Sonagazi upazila of Feni soon.
Alongside the specific projects, India is also helping Bangladesh in different projects through technological and infrastructural facilities.
In addition to India and Bangladesh, there are two other players -- Bhutan and Nepal -- who can also contribute to the development of the electricity and power sectors of other countries as well. Energy is an asset, and if used optimally, countries with higher electricity generation capacity can sell their unutilized ones to the countries where there is a crisis.
Nepal and Bhutan have excess hydro power resources. The sector, if tapped in high inflow seasons in generating countries, has huge exploration chances in markets in Bangladesh and Nepal when there is high demand in latter countries.
In terms of South Asian countries, the partnerships which have many sides, should not and shall not only be limited in import or export or infrastructure; countries can also offer mutual technical assistance for interconnecting the neighbourhood through transmission infrastructure.
Sharing of different country experiences will help countries get to know about best practices which will ultimately help develop national and regional frameworks which can not only ensure secure electricity connections, but also reliable supply and their efficient use as well.
Syed Samiul Basher Anik is a journalist at the Dhaka Tribune. This article has been prepared as part of a BEI media fellowship with support of SARI/El Project Secretariat under IRADe and USAID.
