Peoples living on the two sides of porous borders, especially in adverse locations in Bangladesh and its neighbouring countries often suffer from infrastructure deficiency and power supply uncertainty. They reportedly exchange fuel oil across the border illegally to meet the local needs or to take advantage of energy price differentials in two countries.
In such a context, cross-border energy trade (CBET) can be an effective solution. Studies have confirmed the potential for CBET in the Bangladesh, Bhutan, India and Nepal (BBIN) sub-region in South Asia, also saying that that CBET would benefit all these countries. These countries are on a positive growth path and need energy solutions of different kinds in view of the climate change challenges.
So, small-scale cross-border energy trade, alongside large joint venture projects and commercial exchange of energy, may offer suitable solutions in frontier areas of each country. More importantly, such solutions can be made by utilising under-utilised or unutilised natural resources and reduce the use of fossil fuel in the process.
In fact, that kind of cooperation can be based on generating renewable energy in a limited scale that can meet the demand of the local people in each country and be exported to the nearest location on the other side of the border. Since all the four countries of the BBIN sub-region have been blessed with prospects of renewable energy, what is needed is initiative produce power and trade to meet people's demand.
A study titled 'Cross-border electricity trade in the Bangladesh-Bhutan-India-Nepal (BBIN) Region: A cost-based market perspective' shows Bhutan, India and Nepal collectively have a hydropower potential of 150 gigawatts, only 17 per cent of which is currently utilised. "Hydropower resources have the potential to store significant amounts of energy, which can reduce the cost of integrating intermittent wind and solar resources and increase the opportunities for electricity trade within the region," it observed.
What can be new in implementing the CBET formula is the consideration of the needs of power of people in bordering areas and undertaking renewable power plant projects dedicated to a specific area not connected to national grid and groups of people across the border who are living in similar conditions of, say, hilly, riverine, forest or otherwise isolated areas.
These projects may not be very costly and they can be implemented in the light of the border haat (weekly bazaar), an arrangement for sales and purchase by peoples of Bangladesh and India. People in each area may be encouraged to take entrepreneurial initiative with proper supports to produce renewable energy to be shared by people across the border on a commercial basis.
Already, a study initiated by Bangladesh Enterprise Institute (BEI), Confederation of Indian Industry, and Integrated Research and Action for Development is underway to focus on the socio-economic assessment of CBET-related policies and the potential to facilitate a better CBET regime at the sub-regional level. The study paper is expected to generate a set of recommendations for various stakeholders that may include government agencies, the energy security community, civil society, NGOs, academia, and media.
Meanwhile, policymakers in the BBIN countries may think about a set of options including small-scale renewable energy projects meant for successful implementation of the CBET.
However, for implementing the small-scale cross-order renewable energy projects and sharing power to be produced by them, the countries would be required to make operational a legal framework. Regulatory authorities in each country, through proper negotiation with their counterparts in the other country, may develop modality for uninterrupted generation of power and unhindered cross-border power trade under any circumstances.
Different stakeholders including political actors should be told that energy security is a common concern for peoples in all these countries and if collaborative power projects, apart from enhanced national capacity, cater to the needs of their peoples, lives of millions in this impoverished region could be better.
Such projects will fill in the gaps in energy supply in each country in the bordering areas and surely boost the economy, enhance purchasing power of the peoples and eventually boost the demand for higher trade transactions formally. This kind of CBET practice will not only increase the ratio of green energy in energy supply but also ensure green growth.
The collaboration on CBET of renewable energy between peoples in frontier areas will also promote the so-called track-II diplomacy - people-to-people contact - and contribute to reducing informal trade of various commodities including fuel. That kind of atmosphere will also be helpful for addressing tensions and misunderstanding often noticed along the borders throughout South Asia region.
This article has been prepared as part of a BEI media fellowship with support of SARI/El Project Secretariat under IRADe and USAID.
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