{"id":97583,"date":"2021-03-24T23:17:15","date_gmt":"2021-03-24T17:47:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=97583"},"modified":"2021-03-24T23:17:15","modified_gmt":"2021-03-24T17:47:15","slug":"the-issue-of-cross-border-electricity-trade-in-south-asia","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-issue-of-cross-border-electricity-trade-in-south-asia\/","title":{"rendered":"The Issue of Cross Border Electricity Trade in South Asia"},"content":{"rendered":"\n<p><strong>Synopsis: <\/strong>India should plan a stable institutional model for governing electricity trade across borders. It should avoid imposing restrictive rules which is against the free market economy.<\/p>\n<h5><strong>Background<\/strong><\/h5>\n<ul>\n<li>Currently, <strong>Guidelines for Import\/Export (Cross Border) of Electricity-2018<\/strong> govern the trade of electricity across its borders.<\/li>\n<li>In 2014, India through the <strong>South Asian Association for Regional Cooperation (SAARC) framework<\/strong>, liberalized its electricity trade.<\/li>\n<li><strong>China entered the market<\/strong> in the south Asian region to take advantage of it.<\/li>\n<li>India countered by <strong>taking back<\/strong> the free market advantages. Further, it imposed <strong>strong restrictions<\/strong> that prevented regional Private entities and joint ventures from participating.<\/li>\n<li>After long years of protest by Nepal and Bhutan, <strong>new guidelines in 2018<\/strong> (Guidelines for Import\/Export (Cross Border) of Electricity-2018) were formulated.<\/li>\n<li>The new rules <strong>allow private sector participation<\/strong> but exclude Chinese investments. Through the new electricity rules, India attempts to balance China\u2019s growing influence in the region.<\/li>\n<li>The new rules have clear limits on who can buy from and sell into India.<\/li>\n<li>However, it has the potential to disturb the electricity markets of Bangladesh, Bhutan, and Nepal.<\/li>\n<\/ul>\n<h5><strong>What are the important provisions?<\/strong><\/h5>\n<ul>\n<li><strong>First, <\/strong>According to the new rules, Power plants owned by a company based in the country, not having a bilateral agreement with India on power sector cooperation, cannot participate.<\/li>\n<li><strong>Second, <\/strong>the rules place the same security restrictions on tripartite trade.<\/li>\n<li><strong>Third, <\/strong>the rules establish a surveillance procedure to detect changes in the ownership patterns of entities trading with India<strong>.<\/strong><\/li>\n<\/ul>\n<h5><strong>What are the issues involved?<\/strong><\/h5>\n<ul>\n<li><strong>First, <\/strong>the institutional structure that governs the trade of electricity across its borders is India-centric.\n<ul>\n<li>India is in a Geographical advantage as it is placed in the middle of south Asian countries. Moreover, India at present is the fourth-largest global energy consumer. It puts India in a dominant position.<\/li>\n<li>However, India\u2019s monopolistic tendency in power will attract displeasure from its neighbours as their economic growth will hurt.<\/li>\n<li>Also, the prospect of an independent regional body governing electricity trade is unlikely in the near future.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Second, <\/strong>lack of impartial institutions for planning, investments, and conflict resolution regarding electricity trade will impact India&#8217;s vision of <strong>One Sun One World One Grid (<\/strong>OSOWOG)<strong>. <\/strong>\n<ul>\n<li>The OSOWOG aims to connect West Asia, Southeast Asia, and Africa. An impartial institution is important for making it functional.<\/li>\n<li>However, the South Asian lesson, contained in these latest rules tells us that political realities will hamper the vision of borderless trade.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>India should plan for an attractive institutional model by setting standards that profit investors and utilities. India needs to create a rule-based regional institution that can counter Chinese offerings in other theatres.<\/p>\n<p><strong>Source;<\/strong> <a href=\"https:\/\/epaper.thehindu.com\/Home\/ShareArticle?OrgId=GKL8DICRD.1&amp;imageview=0\">The Hindu<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis: India should plan a stable institutional model for governing electricity trade across borders. It should avoid imposing restrictive rules which is against the free market economy. Background Currently, Guidelines for Import\/Export (Cross Border) of Electricity-2018 govern the trade of electricity across its borders. In 2014, India through the South Asian Association for Regional Cooperation&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-issue-of-cross-border-electricity-trade-in-south-asia\/\">Continue reading <span class=\"screen-reader-text\">The Issue of Cross Border Electricity Trade in South Asia<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1457],"class_list":["post-97583","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-ir_02","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1703422375},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/97583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=97583"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/97583\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=97583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=97583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=97583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}