Nepal to join BIMSTEC Grid InterconnectionNepal has decided to join BIMSTEC Grid Interconne- ction and sign a memorandum of understanding at the upcoming third BIMSTEC Energy Ministers Meet that the country is hosting shortly.
Nepal has decided to join BIMSTEC Grid Interconne- ction and sign a memorandum of understanding at the upcoming third BIMSTEC Energy Ministers Meet that the country is hosting shortly.
A Cabinet meeting on October 23 approved the proposal, according to Prime Minister Office’s website.
Officials said that the MoU will provide a broad framework for the member countries to cooperate towards the implementation of grid interconnections for the trade in electricity with a view to promoting rational and optimal power transmission in the BIMSTEC region.
It will facilitate the optimisation of energy resources in the region for mutual benefits on non-discriminatory basis subject to laws, rules and regulations of the respective members.
As well as promoting efficient, economic and secure operation of power system needed through the development of regional electricity networks, it is expected to optimise capital investment for generation capacity across the region.
Initially, member states Nepal, Bangladesh, India, Myanmar, Sri Lanka, Thailand and Bhutan formulated the plan of action for energy cooperation in BIMSTEC at the first BIMSTEC Energy Ministers’ Conference in New Delhi on October 4, 2005. In this plan, under the “BIMSTEC Trans-Power Exchange and Development Project”, it
was decided that a taskforce led by Thailand, with representatives of member countries, will give a report on draft MoU for grid interconnections.
Following five meetings on Trans-power Exchange, the taskforce drafted the MoU for establishment of BIMSTEC Grid Interconnection on March 16, 2015.
In the BIMSTEC Leaders’ Retreat held in Goa on October 16, 2016, the leaders of the member countries decided to expedite the signing of the MoU on BIMSTEC Grid Interconnection.
Eventually, the fourth meeting of BIMSTEC Senior Officials on Energy in January 2017 discussed and finalised the MoU.