Strategy to sustain energy diplomacy

Bangladesh has, of late, begun pursuing 'energy diplomacy' with a view to fostering regional cooperation in the energy and power sector to meet mutual demand of the member-countries as far as possible. The move has also received appreciation from all quarters.
Energy diplomacy, to mention, is at the nexus of national security, economic prosperity and the environment of a country. Developed countries integrate energy security interests into foreign policy decision-making, putting energy diplomacy at the forefront of their foreign policy.
Many nations identify opportunities for geo-strategic cooperation through energy in interdependent markets. They forge strong diplomatic relationships with major consumers and suppliers, anticipate the impacts of changing energy markets and leverage their role in energy-related international organisations.
There is no denying that energy demands in South Asia are growing at over 6.0 per cent a year -- a pace that is far in excess of the region's capacity to meet. The fact that a sizeable section of the population does not have access to electricity makes energy security a daunting challenge before the countries of this region.
On its part, Bangladesh has proposed to create South Asian Power Grid covering all the member-countries of the South Asian Association for Regional Cooperation (SAARC). It did take another move to create cooperation in power and energy sectors between a number of South and Southeast Asian countries under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) umbrella.
Regional cooperation, as many observers say, will reduce the risk of dependence on a single energy source. Every country of the region will be immensely benefited through such cooperation. But such initiative, the observers suggest, needs an intensified approach to become successful,
Bangladesh's move for import of electricity from Myanmar is yet another example of its energy diplomacy. The latter did show a 'guarded approach' from the very beginning of approach that the former had made. However, if confidence-building measures are taken and a relationship is built on the basis of trust, many believe Myanmar will make a positive response to the Bangladesh's energy diplomacy and come to an agreement to supply electricity.
Many analysts have otherwise commended the government's energy diplomacy, but they have called for evolving a national strategy, based on national consensus to ensure its sustainability. Of late, many developed countries have taken such an approach to go for energy sector development through regional cooperation. They were successful because they ensured their commercial viability.
Yet unfortunately, many developing countries are not getting benefits because of their constraints in political arena and problems relating to bureaucratic capacity. The lack of commercial viability also obstructs the process for adopting such an approach.
As such, there is a need to ensure efficiency and transparency at the political level and capability at bureaucratic level, taking into consideration the commercial factors having relevance to viability of related projects and programmes, in addition to national consensus, for becoming successful in energy diplomacy. The government has to take the lead in this respect.
Furthermore, the energy diplomacy will allow the national grid operators to jointly develop coordinated procedures for secure and reliable operation of the inter-connected grids of the member-states and prepare scheduling, dispatch, energy accounting and settlement procedures for cross-border trade. Besides, it
will allow transfer of technology related to generation, transmission and distribution of power among the SAARC member-states.
As part of the energy diplomacy, Bangladesh needs to realise the ever-increasing demand for energy for socio-economic development. Such cooperation has already been initiated through the SAARC, South Asian Energy Centre (SAEC) and BIMSTEC to share hydropower via cross-border connectivity and capacity development. Through the cooperation, hydropower potential of Bhutan and Nepal could be utilised for the sub-region.
As part of the government move for regional energy cooperation, Bangladesh has already set up cross-border electricity grid with India for importing 500-megawatt power from there and is also negotiating to import, at least, 3,500-MW more electricity through bilateral, regional and sub-regional joint venture initiatives with India, Myanmar, Nepal and Bhutan by 2030.
The regional countries, to mention, have the potential for generating around 260,000 megawatt (MW) of hydropower, including 150,000MW by India, 40,000MW by Myanmar, 30,000MW by Bhutan and Nepal each, 500MW by Bangladesh and Thailand each and 1,000MW by Sri Lanka.
Regional cooperation with neighbours has enormous potential for unlocking regional long-term energy balance in a cost-effective manner. Cross-border electricity trading with India has otherwise opened up the possibility for power trading with Nepal and Bhutan as well.
Through energy diplomacy, Bangladesh has moved for setting up a number of coal-fired power plants each having over 1200 MW capacity, under joint ventures with India, China, and Malaysia in the country.
The benefits of country-wise and regional policies in the energy sector are manifold. Bringing electricity to the millions of the poor in the region will help alleviate their conditions of living. It will give people access to better education, health, water and sanitation services and technologies that will open up communication, information sharing, storage of foodgrains and several other societal benefits. All there will contribute, in the process, to bringing about peace and cohesion to these societies.
In order to improve the investment environment and address the needs of the energy sector, all under-developed and developing countries need to pursue 'energy diplomacy' to meet their rising demands for fuel. Such a move will certainly enable them to achieve energy security.  
    szkhan@dhaka.net