The government has finalized the policy for cross-border electricity trade with a provision for exporting power in addition to importing it.
Cross-border electricity trade was becoming harder given that the government didn’t have any specific policies for it until now.
Power Cell, the government agency responsible for implementing projects in power sector reforms, submitted the draft policy to the ministry of power, energy and mineral resources last week.
“The trade should be brought under a policy and since we are including India, Nepal and Bhutan, it’s essential,” Power Cell Director General Mohamamd Hossain told Bangla Tribune.
A redeeming feature of this policy is the import and export of power.
The ministry’s Power Division says that the country can now generate over 20,000 megawatt of power though the demand falls to 8,000 MW in winter, when more than half of the power plants remain closed.
“Our biggest challenge is to reduce the gap between demand and supply in winter and summer,” Nasrul Hamid, the state minister for power, said.
A Power Division official says, “We must take initiative to export power and use the transmission lines for import and for export.”
“This will make the power sector self-sufficient,” he added.
The formulated policy says that Power Grid Company of Bangladesh will construct grid line and sub stations in their own area.
There is also the provision for grids across the border to be rented to Bangladesh, the official said.
The policy also states that Bangladesh can associate with a bi-lateral and tri-lateral agreement and buy electricity from any company of the exporting country be it state-owned or private.
For investment, Bangladesh government can take loans from donor agencies or other areas.
Bangladesh already imports 1200 megawatt power from India and process is underway to import another 1500 megawatt.
On the other hand, Bangladesh also signed a Memorandum of Understanding with Nepal. Under the MoU, possibilities in both countries will be explored and grid lines constructed. Discussion is underway to sign a tripartite agreement with Bhutan with India as the other partner. This may be signed in April.