BIMSTEC's energy landscape: Present achievements and future aspirations

To bolster energy security across the region, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) emerges as a formidable option. This intergovernmental organisation, comprising nations from South and Southeast Asia, is strategically positioned to address the complex energy needs of its member states. 

Recognising the paramount importance of energy security in the current geopolitical landscape, BIMSTEC offers a collaborative platform for fostering resilience, sustainability, and self-reliance.

A forthcoming establishment within the regional organisation BIMSTEC, denoted as an energy centre, is poised for inauguration in India, as articulated by Secretary General Tenzin Lekphell. This centre is slated to function as the secretariat for BIMSTEC's energy cooperation initiatives, an announcement made during the BIMSTEC Day reception in Dhaka on June 6, 2023. Secretary General Lekphell expounded on the ongoing efforts encompassing three pivotal elements instrumental for effectuating inter-grid connection. 

These elements, namely the BIMSTEC Energy Master Plan, the BIMSTEC Policy for Transmission of Electricity, and the Policy for Trade, Exchange of Electricity, and Tariff Mechanism, are currently undergoing finalisation procedures. Preceding this development, the BIMSTEC Secretariat, in collaboration with the program titled South Asian Regional Initiative for Energy Integration (SARI/EI), orchestrated a two-day conference on Enhancing Energy Cooperation in the BIMSTEC Region. 

This event took place on February 25-26, 2020, at the BIMSTEC Secretariat in Dhaka, attracting participation from government officials, diplomats, energy experts, and think tanks from BIMSTEC Member States. The conference underscored the necessity of harmonising operational, legal, and regulatory frameworks across BIMSTEC countries to implement a connected regional electricity grid successfully.

Besides, The BIMSTEC Energy Centre (BEC) had its foundational Memorandum of Association (MoA) signed on January 22, 2011, in Bengaluru, India. However, its operationalisation remains pending. Member States are currently formulating a comprehensive set of rules governing the structure, functioning, financing, and reporting of all BIMSTEC entities, including the BIMSTEC Energy Centre, as mentioned earlier. 

The Memorandum of Understanding (MoU) for establishing the BIMSTEC Grid Interconnection, signed on August 31, 2018, during the Fourth BIMSTEC Summit in Kathmandu, Nepal, came into force on April 7, 2019. Commencing at the Second BIMSTEC Energy Ministerial Meeting (2nd BEMM) in Bangkok, Thailand, on March 5, 2010, a decision was reached to initiate a BIMSTEC Grid Interconnection Master Plan Study. Presently, the secretariat communicates with development partners, including the Asian Development Bank (ADB), to undertake this comprehensive study. Notably, the first meeting of the BIMSTEC Grid Interconnection Coordination Committee (1st BGICC) convened virtually in Nay Pyi Taw, Myanmar, on June 30, 2021. 

Attended by delegations from all BIMSTEC Member States, the meeting, inaugurated by Mr Than Zaw, Permanent Secretary of the Ministry of Electricity and Energy of Myanmar, included deliberations on the functions and mandates of BGICC, as stipulated in the MoU and Terms of Reference (TOR). Emphasis was placed on coordinating the implementation of grid interconnections and electricity trade alongside discussions on the 'Way Forward of the BGICC' and the methodology for conducting the BIMSTEC Grid Interconnection Master Plan Study (BGIMPS). 

The significance of formulating BIMSTEC Policies for Transmission of Electricity and Trade, Exchange of Electricity, and Tariff Mechanism was underscored at the meeting, aligning with the TOR of the BGICC. In his special remarks, Secretary General Lekphell underscored the criticality of the regular convening of BIMSTEC Sectoral Cooperation meetings, expressing confidence in securing a renewed commitment from Member States for the forthcoming Third BIMSTEC Energy Ministers' Meeting (3rd BEMM) and the Fifth Senior Officials' Meeting on Energy (5th SOM-E) in due course.

In the context of the BIMSTEC framework, the demonstration of interstate power collaboration and connectivity in fossil fuel resources is evident through the promotion of cross-border connectivity and infrastructure development. Let's take a closer look at this scenario.

India and Bangladesh engage in cross-border power trade facilitated by the Bangladesh Power Development Board (BPDB), which imports electricity through Indian trading entities PTC India and NTPC Vidyut Vyapar Nigam Ltd. (NVVNL). The supply initiation occurred in October 2013 following the completion of the Bheramara (Bangladesh)–Baharampur (India) 400 KV HVDC transmission link. The original line capacity of 500 MW was subsequently augmented to 1000 MW. Additionally, a 132 KV transmission line connects Tripura in India to Bangladesh, enabling the importation of approximately 160 MW of power.

Bhutan and India collaborate extensively in the power sector through intergovernmental arrangements, resulting in the development of various power plants, including the 336 MW Chukha HPP, 60 MW Kurichhu HPP, 1020 MW Tala HPP, and 750 MW Mandhechu HPP. Furthermore, a 126 MW Dagachhu HPP operates as a public-private partnership (PPP) with private investment from an Indian private-sector generation company. 

The 2006 Agreement on Cooperation in Hydropower and its 2009 Protocol formalises the cooperation framework. The Protocol commits India to support Bhutan in achieving a minimum of 10,000 MW of hydropower development by 2020, with surplus electricity exported to India. Notable projects under this agreement include the 1200 MW Punatsangchhu-I and 1020 MW Punatsangchhu-II and the commissioned 720 MW Mangdechhu. An additional Inter-Governmental Agreement, signed in April 2014, outlines the development of four more hydropower projects (600 MW Kholongchhu, 180 MW Bunakha, 570 MW Wangchhu, and 770 MW Chamkharchhu) under the Joint Venture Model.

India and Nepal, under various bilateral treaties and contracts in a Government-to-Government mode, facilitate power importation by Nepal. The 400 KV Dhalkebar (Nepal) - Muzaffarpur (India) transmission link was commissioned in February 2016, with an initial charging capacity of 132 KV, subsequently increased to 220 KV due to delays in constructing the 400 KV substation. Several 132 KV cross-border lines are also operational.

Myanmar and China engage in regional energy cooperation focused on export-oriented hydropower projects. This collaboration includes the commissioned 600 MW Shweli 1HPP (2009) and 240 MW Dapein 1 HPP (2011), with power evacuation through transmission lines to China's Yunnan province. Additionally, the 99 MW Chipwi Nge HPP, commissioned in 2013, supplies power within Myanmar.

In Southeast Asia, Thailand imports electricity from Laos through the 1075 km Nam Theun 2 HPP, supplying 995 MW to EGAT's grid in Thailand. Similarly, power from the 430 MW Theun Hinboun HPP and 150 MW Huoay Ho HPP is exported to Thailand. The 1875 MW Hongsa TPP in Laos provides 1473 MW to Thailand. The Thailand-Malaysia HVDC Interconnection facilitates energy exchange between the two countries.

In contrast to power grid interconnections, gas grid interconnections within BIMSTEC are in the early stages. Operational cross-border gas pipelines include those supplying gas from Myanmar to Thailand and China. These include pipelines transferring gas from Myanmar's Yadana, Yetagun, and Zawtika gas fields to Thailand. Additionally, a 771 km Myanmar-China gas pipeline (commissioned in 2013) and a 793 km Myanmar-China crude oil pipeline (commissioned in 2017) facilitate energy transfer between Myanmar and China. The Motihari in India to Amlekhgunj in Nepal petroleum pipeline, commissioned in 2019, further contributes to regional cooperation in fossil fuel resources.

However, the future outlook within the BIMSTEC framework is optimistic, with plans in motion to strengthen and expand power grid interconnections across member countries. Anticipated developments include establishing transmission lines, upgrades, and cross-border connections to facilitate enhanced energy trade and cooperation.

For instance, plans between India and Bhutan involve the establishment of the Punatsangchu HEP – Alipurduar 400 KV Double Circuit (D/c) and additional lines connecting various regions. Similarly, collaborations between India and Nepal foresee upgrading existing transmission lines, introducing new lines, and the development of evacuation lines for export-oriented hydropower projects.

Proposed connections between India and Bangladesh encompass high-capacity transmission lines linking regions within the two countries. Furthermore, plans for an undersea HVDC cable or overhead transmission line from India to Sri Lanka are underway, demonstrating a commitment to regional energy integration.

In the context of Thailand and Myanmar, previous agreements aimed at purchasing electricity have faced challenges, and discussions about their future are pending. Additionally, potential power connections between Bangladesh and Myanmar, Thailand and Laos, and Myanmar and China are part of the envisioned cross-border energy infrastructure.

Looking beyond power connectivity, collaborative initiatives in the oil and gas sectors are gaining traction. The India-Bangladesh Friendship Pipeline Project, focused on diesel transportation, reflects an ongoing commitment to energy cooperation. Furthermore, discussions between India's Oil and Natural Gas Corporation (ONGC) and Bangladesh Petroleum Corporation (BPC) signal plans for a substantial gas pipeline spanning Bangladesh, Myanmar, and India's north-eastern states.

These endeavours underscore the collaborative vision within the BIMSTEC region, aiming to leverage shared energy resources and promote sustainable development.

Regional energy cooperation within BIMSTEC is a beacon of positivity, offering Member States with surplus electricity the opportunity to engage in commercially profitable trades with those in need. A prime example is the vibrant hydropower trade between Bhutan and India, contributing significantly to Bhutan's GDP, estimated between 6-10 per cent from 2012 to 2019. This collaborative approach also facilitates access to foreign direct investment, exemplified by India's substantial investment in Nepal's 900 MW Arun-III hydropower project, one of Nepal's largest Foreign Direct Investment projects. Such investments enhance power generation and free up capital within host countries for diverse applications.

At present, Cross-Border Electricity Trade (CBET) is actively taking place within BIMSTEC, notably between Bhutan-India, India-Bangladesh, India-Nepal, and India-Myanmar, accounting for a robust overall trade of nearly 15,681 MU, equivalent to approximately 1790 MW when expressed in continuous terms. The actual power transfer is anticipated to be even higher, accounting for variations across different times and seasons. Furthermore, CBET extends beyond BIMSTEC borders, involving non-BIMSTEC nations such as Myanmar-China and the import of power by Thailand from Laos, Cambodia, and Malaysia.

Looking ahead, governments and utilities within BIMSTEC have identified key projects for future CBET, reflecting a shared commitment to sustained regional collaboration. These initiatives include India's support to Bhutan in developing a minimum of 10,000 MW of hydropower, potential power exports from Bhutan to Bangladesh, and the planned import of power by India and Bangladesh from various projects in Nepal. These collaborative ventures exemplify the collective vision for a brighter, interconnected energy future in the BIMSTEC region, promoting economic growth and sustainable development. 

As BIMSTEC strides towards an interconnected energy future, recent achievements and future plans illuminate the region's commitment to collaboration. The collective vision is evident from operationalising the BIMSTEC Energy Centre to fostering cross-border electricity trade. Additionally, ongoing efforts in oil and gas cooperation and exploring new energy corridors showcase a region poised for sustainable development. BIMSTEC's positive trajectory in energy cooperation paints a vibrant picture of shared progress and prosperity in the years to come.

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