India in talks with SE Asian nations for trade in RE power

Sri Lankan President And Indian PM Forge Renewable Energy Pact

According to official sources, India is currently engaged in discussions with various Southeast Asian countries, such as Singapore and Thailand, to facilitate the exchange of renewable energy (RE) electricity across borders. These discussions aim to establish grid connections, either through underwater cables or on land, depending on the most economically viable option.

India's decision to engage in this action will greatly enhance its ability to conduct electricity sales across borders. At present, India has established cross-border connections with Nepal, Bangladesh, Bhutan, and Myanmar, enabling a substantial power transfer of approximately 4,423 MW. Furthermore, New Delhi is actively contemplating engaging in power trading ventures with nations in the West Asian region, such as the UAE.

An anonymous official from the power ministry shared that we are currently engaged in extensive talks with Singapore regarding an agreement for establishing a direct undersea connection to facilitate the trade of renewable energy.

Officials from India's power sector are currently engaged in individual and collaborative conversations with Southeast Asian nations such as Singapore, Malaysia, Myanmar, Indonesia, and Thailand. These discussions are taking place at the ongoing G20 Clean Energy Ministerial meeting hosted in Goa.

"Numerous discussions have already occurred, covering various topics. One of the key matters being discussed is the establishment of interconnections between regional power grids. The process of connecting our grid with Myanmar is estimated to take a duration of four years," stated the official.

Experts argue that the forthcoming agreement with nations in Southeast Asia showcases India's flourishing diplomatic relations in the area and indicates its commitment to becoming a major contributor to renewable energy production, not just domestically, but globally too. Presently, India boasts a renewable energy capability of 177 gigawatts (GW), and it intends to scale this up to 500 GW by 2030.

According to insiders, the Asian Development Bank (ADB) has collaborated with the Central Electricity Authority (CEA) and Central Transmission Utility (CTU) to create a comprehensive project report (DPR).

Moreover, the authorities have enlisted the expertise of EDF, a prominent French electricity provider, to develop a comprehensive set of regulations that will tackle concerns such as pricing. It is anticipated that the energy corporation will deliver the finalized report before the conclusion of this year.

The CEA has established a collaborative advisory committee with authorities from the government-owned electricity transmission company PowerGrid in India to evaluate the necessary infrastructure and produce a financial estimate.

"It showcases the expanding competencies of the nation in the field of renewable energy, and presents opportunities for increased investments in this industry," stated Vikram V, Vice President and Sector Lead of Corporate Ratings at ICRA.

The ASEAN, a collective organization representing countries in Southeast Asia, holds the distinction of being the fourth biggest consumer of energy on the global stage. The progress it makes in adopting sustainable energy sources is critical in the global endeavor to achieve carbon neutrality within the next three decades. Experts predict that the market for renewable energy in ASEAN will experience a steady growth rate of 7.4% over the next five years.

Meanwhile, the President of Sri Lanka and the Prime Minister of India, during a meeting in New Delhi on Friday morning, declared their collaboration in renewable energy and various other fields. In the previous month, discussions took place between India and the UAE to establish a connection between their power grids via underwater cables with the purpose of trading renewable energy.

Currently, the amount of electricity being exchanged with Bhutan is 2,070 MW, with Bangladesh it is 1,160 MW, Nepal it is 1,200 MW, and with Myanmar it is 3 MW. However, once the cross-border interconnections that are currently being built are completed within the next two years, the electricity exchange capacity is expected to almost double to 8,553 MW.