21-7-2023 (NEW DELHI) According to five sources familiar with the matter, India is contemplating the idea of trading power with Southeast Asian nations by establishing grid linkages through Myanmar and Thailand. This strategic move comes as New Delhi aims to leverage its increasing renewables capacity to enhance regional diplomatic engagement.
Industry insiders revealed that the process of establishing the grid linkages could take a minimum of four years to complete. This development follows India’s ongoing efforts to initiate power trading with Middle Eastern countries, including the United Arab Emirates.
The sources, comprising four officials from India’s power ministry, chose to remain anonymous as this previously unreported plan has not been disclosed to the public. A request for comment from India’s federal power ministry went unanswered at the time of reporting.
Prime Minister Narendra Modi’s government has been actively seeking to foster stronger political and economic ties with neighboring countries, countering China’s growing influence in the region.
As part of its efforts, Indian energy officials are currently engaged in separate and group discussions with various countries during the ongoing Group of 20 (G20) ministerial meetings in Goa, India. The power ministry officials stated that securing support from G20 members is critical to garnering backing from investors and developers for investment decisions.
To facilitate this ambitious plan, India has enlisted the expertise of the French utility company EDF to develop a regulatory framework that addresses crucial challenges, including pricing. EDF is expected to finalize the report by the end of this year.
While speaking on the matter, an industry official stated, “Once we are able to connect India’s national grid to Burma (Myanmar), we should be able to strengthen the grid there and further transmit to Thailand and even Asia’s east.”
Cross-border grid linkages have attracted investment and government interest in regions spanning from Europe to Southeast Asia. However, the rising costs of building subsea cables and the surging prices of raw materials required for grid upgrades, coupled with geopolitical tensions, have raised concerns about the viability of such projects.
For decades, members of the Association of Southeast Asian Nations (Asean) have endeavored to establish a regional grid to facilitate multilateral power trade. Progress, however, has been limited to bilateral agreements between countries.
India’s ambitious plan also involves a significant boost to its renewable and big hydropower capacity, aiming to reach 500 gigawatts (GW) by 2030, up from the current 177 GW. The addition of solar parks is expected to contribute substantially to the new capacity.
Ministry officials believe that this effort could reduce India’s dependence on fossil fuels by making solar power accessible for extended periods throughout the day.
Yet, challenges remain, particularly concerning transmission charges for power supplied via an interconnected regional network, as highlighted by a second ministry official.
The planned interconnections will include both undersea and overland links, with renewable energy integration bolstered by pooling resources from across the region, the same official added.
Notably, India already exports some power to neighboring countries such as Bangladesh, Nepal, Bhutan, and Myanmar, albeit in small quantities. However, this trade is expected to see a substantial increase under the new proposed plan, opening new avenues for regional cooperation and sustainable energy development.
