In an era of climate change catastrophes, Bangladesh stands as a beacon of resilience. Despite its vulnerabilities, Bangladeshs commitment to sustainable energy and regional cooperation highlights its strategic foresight. Transforming challenges into strengths, Bangladesh is on a remarkable journey towards energy security and regional integration.
Over the past decade, Bangladeshs economic growth has been nothing short of spectacular. This rapid expansion, however, has come with a steep rise in energy consumption. Despite boasting a total capacity of over 30,000 megawatts, the daily electricity production hovers around 16,477 megawatts, as reported by the state Minister for Power, Energy and Mineral Resources, Nasrul Hamid. The discrepancy between capacity and production is a complex issue, exacerbated by global disruptions such as the Ukraine crisis. As Bangladesh seeks to bridge this gap, the country is planning to import 9,000 MW of electricity from neighboring countries, aiming to diversify its energy portfolio and boost the share of renewable energy.
Enter hydropower - a solution that promises clean, renewable energy and a sustainable future. Nepal, with its vast water resources and towering Himalayan rivers, is poised to play a crucial role in this regional energy dynamic. The Nepal-Bangladesh power trade agreement, initially set in motion with a 2019 Power Purchase Agreement to buy 500 MW from Nepals Upper Karnali Hydropower Station, is a testament to this potential. Developed by Indias GMR Group, the project is a cornerstone of regional cooperation, though initial exports in August 2022 were a modest 40 MW.
To facilitate this export, Bangladesh and Nepal agreed on a 25-year deal, setting the tariff at 6.5 cents per unit. This agreement, however, hinges on the pivotal role of India, through which the transmission lines must pass. While India has agreed in principle, the formal signing of a tripartite agreement remains pending, underscoring the intricate geopolitics of regional energy trade.
Prime Minister Sheikh Hasinas September 2022 visit underscored Bangladeshs strategic energy diplomacy, requesting power purchases from Nepal and Bhutan via India. The Nepal Electricity Authority (NEA) and the Bangladesh Power Development Board (BPDB) have actively pursued Indias consent for a trilateral energy sales agreement. Despite the bureaucratic delays, the potential for a robust energy corridor remains promising, with the Baharampur-Bheramara grid line already facilitating 900-940 MW of imported electricity from India.
The unutilized capacity of this transmission line, estimated at 2,040 MW, is a tantalizing prospect for future imports from Nepal. The strategic importance of Bangladesh in this context cannot be overstated. Geographically nestled in the northeastern part of India, Bangladesh is pivotal for connecting this region to the broader national grid. This connectivity is not merely a technical necessity but a geopolitical imperative, enhancing regional stability and cooperation.
Indias ambitions to generate 500 GW from non-fossil energy sources by 2030, with 50% of its energy needs met from renewables, align seamlessly with Bangladeshs own energy aspirations. The northeastern region of India, with an estimated hydropower potential of 58,971 MW (40% of Indias total), remains largely untapped due to infrastructural and demand constraints. By establishing transmission lines through Bangladesh, India can significantly reduce costs and logistical challenges, making the hydropower potential of Arunachal Pradesh and other northeastern states more accessible.
This regional synergy extends to the broader framework of BIMSTEC and BBIN (Bangladesh, Bhutan, India, Nepal), where energy cooperation has long been a focus. A tripartite power trade agreement would not only streamline energy imports but also set a precedent for future sub-regional collaborations. Such agreements would underscore Indias role as a regional facilitator, promoting sustainable energy solutions and regional stability.
Bangladeshs strategic concessions, such as allowing India to construct a 116 km transmission line across its territory, exemplify its commitment to regional cooperation. This corridor will connect Indias northeastern states, also known as the Seven Sisters, to the national grid, fostering regional integration. In return, Bangladesh seeks assurances for importing power from Nepal and Bhutan, a mutually beneficial arrangement that promises to enhance energy security and economic stability for all parties involved.
The technical data supports this vision. The Power Grid Company of Bangladesh (PGCB) projects an increase in the capacity of the Bharamara-Baharampur transmission line from 2,400 MW to 3,200 MW. This expansion, coupled with Bangladeshs goal to increase imported electricitys share to 40% by 2041, underscores the strategic importance of these energy corridors. Furthermore, the potential for high-capacity interconnectors between Tripura-Cumilla, Bongaigaon (Assam)-Jamalpur/Dinajpur-Purnea (Bihar), and Silchar (Assam)-Fenchuganj, illustrates the scope for regional energy integration.
The forthcoming tripartite agreements, as discussed in the 21st Joint Steering Committee meeting, hold the promise of a transformative shift in South Asian energy dynamics. With Indias Central Electricity Regulatory Commission paving the way for cross-border trade, the legal and technical frameworks are aligning to support these ambitious projects. Nepals hydropower potential, estimated at 80,000 MW, remains a key asset, though currently, only around 2,000 MW is being utilized.
As Bangladesh imports 1,160 MW of power from India through existing cross-border grid lines, the goal to increase this to 60,000 MW by 2041 is within reach. This ambitious target reflects not just energy needs but a vision for a greener, more sustainable future. By tapping into the hydropower potential of its neighbors and facilitating regional energy trade, Bangladesh is positioning itself as a leader in sustainable energy solutions.
The win-win scenario for both Bangladesh and India hinges on mutual benefits and strategic reciprocity. As India taps into its northeastern hydropower potential, the transmission lines through Bangladesh will be crucial. Conversely, Bangladesh must ensure it secures a fair share of this electricity, bolstering its own energy security. The geopolitical and economic stakes are high, but so are the rewards.
In conclusion, the Nepal-India-Bangladesh hydropower agreement is more than just an energy trade deal; it is a symbol of regional cooperation, strategic foresight, and mutual benefit. By harnessing the hydropower potential of Nepal and the northeastern regions of India, and facilitating these through Bangladeshs strategic corridors, the region can forge a path towards sustainable energy, economic stability, and enhanced regional cooperation. Bangladesh, with its strategic diplomacy and regional connectivity, stands at the heart of this transformative journey, exemplifying resilience and strategic foresight in an era of global uncertainties.
Pranto Chatterjee is a former Indian Council for Cultural Relations (ICCR) scholar, holding a B.Tech in Electrical Engineering from NIT Durgapur, India.
