Sunday, April 24, 2022

BIMSTEC Energy Minsters agree to form coordination committee for grid connection

 Kathmandu, Apr. 20

The Energy Ministers of the Bay of Bengal Initiative for Multilateral Technical and Economic Cooperation (BIMSTEC) have agreed to prepare a master plan on 'grid connection', facilitate energy trade and set up an energy trade centre.

The 'Grid Interconnection Coordination Committee' will be set up to implement the grid interconnection and prepare the necessary action plan, said the Ministry of Energy, Water Resources and Irrigation (MoEWRI) citing the BIMSTEC statement.

The third meeting of the BIMSTEC Energy Ministers organised virtually on Wednesday was chaired by Minister for Energy, Water Resources and Irrigation, Pampha Bhusal.

The meeting agreed to formulate a master plan for the BIMSTEC Grid Interconnection Coordination Committee with the assistance of the Asian Development Bank. The meeting also agreed to develop policy and tariff system for energy trade. The BIMSTEC nations have agreed to develop a group of experts to plan cooperation on the modality of energy trade.

In her speech, Minister Bhusal maintained that the BIMSTEC Grid Interconnection Master Plan Study, to be conducted with the technical support from ADB, is expected to identify different transmission projects to be built in the matching timeframes with the power generation projects planned in different BIMSTEC countries.

"A rigorously thought-out plan will be critical to facilitate the intra-regional power trade and enhanced energy cooperation," she said.

Similarly, BIMSTEC Energy Centre will be established for energy related research and to strengthen experience sharing and cooperation among member countries. For that, it has been mentioned in the statement that master plan and action plan will be developed, structure will be prepared and necessary funds will be managed for its operation.

The establishment of BIMSTEC Energy Centre was envisaged during the first BIMSTEC Energy Ministerial Meeting held in India in 2005.

Energy Minister Bhusal suggested increasing the use of clean and renewable energy.

Stressing on the need for adequate financial investment in energy promotion, she said that technology transfer should be promoted in the BIMSTEC.

She stated that the 3E nexus between energy, environment and economy is remarkably vital for achieving sustainable economic growth in the BIMSTEC region. "Over the past decades, we have been conventionally following the course of fossil fuel-based energy production and consumption. This trend needs to be changed as much as possible since it has enormously added stress on our environment," she said.

Minister Bhusal said that the agreement carries high importance for Nepal since the country accords high importance to clean energy, energy cooperation among the members in the region and cross-border energy trade.

"Nepal has a huge hydropower potential. Our hydropower export to the Member States of the BIMSTEC will benefit not only Nepal but also the entire region for reducing non-renewable energy generation and providing sustainability to the system," she stated.

However, most of the energy trade in our region is bilateral in nature. The existing intra-regional energy trade is limited to electricity and petroleum products.

"To diversify this trade, we must chart out short-, medium-, and longer-term power trading projects that can gradually ensure transition to renewable energy production with emphasis on achieving the goals of a carbon-neutral economy," said Minister Bhusal.

Likewise, addressing the meeting on behalf of Nepal, Secretary at the Ministry of Energy Devendra Karki said that progress was being made in energy cooperation with the neighboring countries. He expressed the belief that mutual trust, cooperation and partnership among the BIMSTEC nations would help in adapting and upgrading the development efforts of the member countries.

According to him, 93 per cent of Nepal's population has access to electricity. 

Published in The Rising Nepal daily on 21 April 2022. 

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