ENERGY COOPERATION AMONG THE BIMST-EC COUNTRIES

This article explores why energy cooperation emerged as a cornerstone of the BIMST-EC agenda in the early 2000s and how complementary endowments could be woven into a regional security-of-supply framework. It outlines demand growth in Bangladesh, India and Thailand, hydro potential in Bhutan and Nepal, offshore gas prospects in Myanmar, and transmission bottlenecks that kept trade sub-scale. The discussion reviews governance instruments—power purchase agreements, wheeling arrangements, and open-access rules—that lower risk for cross-border flows. It assesses gas diplomacy and the viability of pipeline versus LNG pathways, noting financing structures, routing politics, and environmental safeguards. Particular attention is given to grid synchronisation, pricing transparency, and prudent regulation to avoid stranded assets. The paper argues that modular interconnections and pilot swaps can create trust, which then scales into multi-country markets and emergency support. It concludes that a phased roadmap—data sharing, common grid codes, regional guarantees, and blended finance—offers the most credible route to durable cooperation and inclusive development outcomes across the Bay of Bengal.

The body begins with a demand–supply map for BIMST-EC members, projecting electricity and gas requirements through the subsequent decade and identifying peak deficits and seasonal surpluses. Section One analyses physical options: high-voltage lines from Bhutan/Nepal into India and onward swaps to Bangladesh; Myanmar gas monetisation via pipeline to regional hubs; and LNG as a flexible backstop while pipelines and grids are built. Section Two examines contracts and regulation: standardised PPAs, time-of-day tariffs, congestion management, and balancing markets that reward flexibility resources. It discusses the role of multilateral lenders and regional guarantees in compressing risk premia for long-tenor infrastructure. Section Three assesses politics and diplomacy—route security, right-of-way, and neighbourhood sensitivities—and proposes confidence-building devices such as pilot 100–300 MW exchanges and transparent metering. Section Four addresses environment and social safeguards, emphasising free, prior and informed consent, cumulative EIAs, and biodiversity-sensitive routing. Section Five presents an implementation ladder: (i) data interoperability and joint planning; (ii) grid code harmonisation; (iii) initial bilateral flows; (iv) multilateral market coupling. The conclusion argues that credible early wins—seasonal swaps, ancillary-service sharing, and emergency support—create constituencies for deeper integration while insulating projects from episodic political shocks.