India to get cross-border electricity trade policy soon

India has taken the lead in integrating the electricity grids of countries in South Asia, as in the case of European and South African nations.


The government is finalising a draft cross-border electricity trade policy to enable Indian producers seamlessly exchange power with neighbouring nations.

Once finalised, it will be sent to the Union Cabinet for approval.

The move follows a meeting of Saarc energy ministers in September 2014 that decided to set up a cross-border transmission interconnection for the member countries.

As per the draft policy, Indian developers of overseas projects will require a one-time single-window clearance for trade of electricity between Saarc nations, sources said. "The policy will immediately enable domestic firms in setting up power plants in Nepal and Bhutan to sell electricity in India.

Likewise, it will enable export of excess power from India," a senior government official said. Power plants of Tata Power, GMR Energy and Satluj Jal Vidyut Nigam totaling 5,000 mw are under construction in neighbouring countries.

India expects to be power surplus this year. The policy will help Indian power plants sell excess generation to other Saarc nations. It will enable the Ministry of Power to allow spot trade of electricity when it deems fit. But cross-border spot trade will have to wait as the buyers and sellers are not known.

As per the policy, the countries will set up enabling power transmission lines within their borders, while the common infrastructure will be set up in joint ventures. Companies getting into bilateral power contracts will have to lay dedicated lines by themselves.

My View:

Cross Border trading surely a great step towards improving the scenario of power sector in south asian countries. It will help the surplus countries like Bhutan to sell electricity at competitive price and the deficit countries like Bangladesh to buy. This will also help the indian generators who installed there power plants in neighbouring countries. Lets hope the dream of cross border trading become reality in coming days.