The Governments of Bangladesh and India are working on plans to expand the regional energy market by exploring new generation capacities, including:

• Doubling capacities of cross-border power transmission interconnections, raising the 500 megawatt (MW) Baharmapur-Bheramara line to 1,000 MW, and the 100 MW Tripura-Comilla line to 200 MW; and 
• Setting up a third cross-border energy grid. 

The proposed third line, a high-voltage, direct current line with a capacity of around 2,000 MW, is being studied by the Government of India. This new line would generate power from hydroelectric projects to be built in India's Northeast, running from Assam's Bongaigaon, to an interconnect point in Bihar—near the Nepal border—through Bangladesh. An easy tap-in/tap-off facility that will enable Bangladesh and India to plug into each other's markets is also being considered.

The Asian Development Bank, through the SASEC program, supports development of cross-border energy interconnection infrastructure to create and serve an effective regional power market in the SASEC region. The $158.60 million Bangladesh-India Electrical Grid Interconnection loan contributed toward establishment of the Baharmapur-Bheramara electrical grid, funding interconnection facilities in Bangladesh.

Regional energy cooperation helps optimize resources and improves intraregional trade by reducing costs and import dependence; improves efficiency in the power sector and strengthens energy security during external shocks or volatile petroleum prices; enhances regional power exchange structures; and increases access and development of renewable energy resources, helping protect an increasingly fragile environment.

Related Link:

•  Power-surplus India to electrify Bangladesh trade