BANGLADESH-INDIA ENERGY SECURITY COOPERATION: PROSPECTS AND CHALLENGES

This article examines the strategic rationale and practical pathways for energy-security cooperation between Bangladesh and India as of 2010. It maps complementarities—Bangladesh’s gas potential and India’s scale in power generation and transmission—against vulnerabilities such as supply intermittency, demand growth, fuel import exposure and transmission congestion. The analysis assesses options including cross-border power trade, regional power pools, joint LNG procurement, gas pipeline interconnections and investments in peaking capacity. Regulatory and commercial issues are explored: pricing formulas, open-access rules, system balancing and creditworthy off-take. The paper reviews environmental and social safeguards for cross-border lines, emphasising resettlement standards and grievance redress. It argues that credible institutions, cost-reflective tariffs and transparent procurement can unlock bankable projects. Finally, it evaluates geopolitical risk and proposes confidence-building measures—data sharing, grid codes and emergency support protocols—to make cooperation resilient to shocks.

The body begins with a baseline of Bangladesh’s generation mix and reserve margins in 2010, contrasting seasonal peaks with India’s regional surpluses and deficits. Section One details cross-border power trade architecture: HVDC interties, scheduling, settlement cycles and loss allocation, drawing lessons from SAARC and BIMSTEC frameworks. Section Two evaluates natural gas options—domestic exploration, LNG import terminals and interconnecting pipelines—discussing pricing benchmarks, take-or-pay clauses and third-party access. Section Three analyses risk allocation for private investment: construction, demand, currency and political risks, and the role of partial risk guarantees and escrow accounts. Section Four covers renewables integration and flexibility—grid codes for solar and wind, ancillary services markets, and demand response to reduce peak stress. Section Five outlines governance: independent regulators, transparency in PPA tenders, and dispute resolution. The conclusion proposes a phased roadmap: near-term power imports to relieve shortages; medium-term pipeline/LNG integration; and long-term market coupling with harmonised standards, enabling reliable, affordable and cleaner power for both countries.