India to facilitate cross-border power trading with SAARC Nations

IEX to be trading platform for Nepal, Bhutan & Bangladesh

To facilitate an integrated power grid for members of the South Asian Association for Regional Cooperation (Saarc), the Centre will soon approve cross-border trading on the Indian Energy Exchange (IEX).

The move will initially enable short-term buying and selling of power with Nepal, Bangladesh and Bhutan. Transactions with other Saarc members will be carried out when these countries have grid connectivity with India.

A STEP TOWARDS REALITY

• India Energy Exchange to facilitate cross-border power trading
• To trade 120 Mw with Bhutan, 50 Mw each with Bangladesh and Nepal
• To share power with other neighbouring countries when grid is established; next in line Sri Lanka
• Likely to get consent in a month

In a petition, IEX has sought consent and directions for cross-border trading of 120 Mw with Bhutan and 50 Mw each with Nepal and Bangladesh. The petition said the key regulations governing the power market — the Indian Electricity Grid Code, open access regulations and power market regulations — didn’t have provisions barring such transactions by power exchanges.

Officials say following the petition, the Central Electricity Regulatory Commission has asked the Central Electricity Authority, the ministry of power and the Power System Operation Corporation for their consent in the matter. Once approved, cross-border power trading will be commenced.

At an annual Saarc energy ministers’ meeting here in October last year, the Centre had arrived at a consensus over an inter-country grid connecting members of the Saarc bloc.

The issue had been hanging fire for four years, At that time, power minister Piyush Goyal had said initial discussions for an integrated power transmission grid connecting India and its neighbours would be held. Through such a grid, excess production in a region could be used to meet deficit elsewhere, he had added.

As of now, the India-Bhutan, India-Nepal and India-Bangladesh grids are interconnected and cross-border trade is already taking place through these.

While an India-Sri-Lanka asynchronous interconnection is being finalised, an India-Pakistan grid is also being considered.