SL’s path to sustainable development through grid connectivity with India

The South Asian Countries (SAC) exhibit significant variation in their commercial energy resources and demand. While India, Pakistan, and Bangladesh have substantial natural gas and coal resources, Bhutan and Nepal possess abundant hydropower resources. All SAC countries also have vast potential for renewable energy, making the sharing of these resources a logical step towards achieving more efficient energy supply solutions for the entire region. To achieve this, SAC needs to enhance its regional energy transfer capabilities by establishing a more robust intra and inter-regional energy trade structure.

Energy cooperation is a key focus of the South Asia Subregional Economic Cooperation (SASEC) program. Currently, intra-regional energy trade among SASEC countries is limited to electricity trade between India-Bhutan and India-Nepal, as well as trade in petroleum products between India and Nepal, Bhutan, Bangladesh, and Sri Lanka. However, there is scope for expanding electricity trade through the development of power transfer links between Bhutan and India, and India and Nepal. Additionally, proposed power transfer links between Bangladesh and India, India and Sri Lanka, and India and Pakistan can further strengthen regional power trade.

To enhance energy cooperation, several important steps need to be taken. Firstly, a structure for a regional power exchange should be developed, considering the power system structures and operational procedures of individual countries. Secondly, the investment environment for the private sector in electricity generation and transmission should be improved, particularly in Nepal and Bhutan, through streamlined approval processes and independent regulatory environments. Thirdly, technically and economically feasible cross-border interconnections should be identified through scenario analysis, along with possible financing options. Lastly, legal and regulatory frameworks for cross-border trade should be harmonized, and an Energy Charter Treaty should be considered to provide greater security for cross-border energy transfer-related investments and transactions.

In this context, Sri Lanka can take lessons from the tripartite agreement between Nepal, India, and Bangladesh for electricity generation and export. As an island nation, Sri Lanka faces several challenges in meeting its electricity needs, including limited resources and high costs. However, by implementing a similar grid connectivity agreement with India, Sri Lanka can significantly address these issues while also boosting foreign relations and promoting sustainable development.

The tripartite agreement between Nepal, India, and Bangladesh has proven to be a successful model for electricity generation and export in the region. Under this agreement, Nepal, with its abundant hydropower resources, generates electricity and exports it to India and Bangladesh through a common grid system. This collaboration allows Nepal to tap into its renewable energy potential while providing a reliable and affordable power supply to its neighbors.

Sri Lanka, too, possesses renewable energy sources that can be harnessed for electricity generation. With an increasing focus on sustainable development and reducing its carbon footprint, the country has already made significant progress in promoting renewable energy, especially in the form of solar and wind power. However, Sri Lanka's energy demands surpass its current generation capacity. By establishing a grid connectivity agreement with India, Sri Lanka can efficiently utilize its renewable energy potential while also ensuring a stable power supply for its population.

India, with its vast energy infrastructure and expertise, can play a crucial role in facilitating grid connectivity with Sri Lanka. The country has heavily invested in renewable energy projects, making it a global leader in this sector. Through collaboration, India can provide technical know-how and support to Sri Lanka in developing its renewable energy infrastructure, including hydropower, solar, and wind projects.

Grid connectivity with India offers several benefits to Sri Lanka. Firstly, it can help reduce the country's dependence on costly imported fossil fuels. Currently, Sri Lanka heavily relies on diesel and coal for its power generation, which not only contributes to high energy costs but also negatively impacts the environment. Access to a stable and affordable electricity supply through grid connectivity will help shift Sri Lanka towards a more sustainable energy mix, reducing carbon emissions and promoting cleaner and greener development.

Secondly, establishing grid connectivity with India can enhance Sri Lanka's capacity for electricity generation. With access to a larger market, Sri Lanka can attract foreign investments in renewable energy projects. Foreign companies interested in investing in the renewable energy sector will see the potential benefits of connecting to a regional grid, allowing them to export surplus power to India and other neighboring countries. This, in turn, will contribute to the country's economic growth and create job opportunities.

Moreover, grid connectivity with India can strengthen diplomatic ties between the two nations. Sri Lanka's geographical proximity to India presents an opportunity for collaboration in various sectors, including energy. A shared power grid will not only promote economic integration but also foster cooperation on policy frameworks, technical standards, and capacity building. This will create a foundation for closer regional cooperation and pave the way for more comprehensive partnerships in the future.

While the benefits of grid connectivity with India are evident, challenges may arise during the implementation phase. The development of cross-border transmission lines, harmonization of regulatory frameworks, and resolution of potential disputes will require extensive coordination between the two governments. However, the success of the tripartite agreement between Nepal, India, and Bangladesh demonstrates that such challenges are surmountable with strong political will and commitment from all parties involved.

In conclusion, Sri Lanka can learn valuable lessons from the tripartite agreement between Nepal, India, and Bangladesh for electricity generation and export. By mooting for grid connectivity with India, Sri Lanka can tap into its renewable energy potential, reduce dependence on costly imported fossil fuels, enhance its electricity generation capacity, and strengthen diplomatic ties. This collaboration will not only address Sri Lanka's energy challenges but also contribute to sustainable development and regional integration.