• The proposal by India to establish a transnational electricity grid to enhance regional energy security is a part of BIMSTEC (Bay of Bengal initiative for multi sectoral technical and economic cooperation) initiative.
• Prime Minister Narendra Modi said that India got encouraging responses from neighbouring countries to its proposal to jointly build a transnational electricity grid.
• It proposes a grid connection from India and Bangladesh through Myanmar and Thailand.
• It includes building 3000km long power grid mostly by interconnecting existing regional or national grids.

MERITS:

• It would help India to use its growing domestic renewables capacity to its advantage.
• It would ensure regional energy security.
• Strategically it would help to counter China’s increasing influence over South Asia.
• The consumers across the countries could benefit from the price rationalisation of electricity during peak times.
• The BIMSTEC plan overlaps with a larger proposal being formulated by India to establish a GLOBAL SOLAR GRID connecting over 100 nations. It was unveiled during UN COP 26 in Nov 2021 & includes first international network of globally interconnected solar electricity grids to ensure dependable and reasonable prices of electricity across nations. New Delhi has started trading with UAE and Oman under “One Sun One World One Grid and Green Grids”.

CURRENT STATUS:

• India already exports some electricity to Nepal and Bangladesh, and imports hydropower from Bhutan.
• An exchange at a small-scale is also being done with Myanmar.

CHALLENGES:

While energy deficit countries such as Bangladesh or Myanmar would be keen to come on board, energy surplus countries are sometimes less invested in the idea of joining a transnational grid arrangement.