The unanticipated shortages in one country’s power grid can be readily solved by imports from a neighbouring grid, said a blog written by Priyantha Wijayatunga, ADB Director (Energy Division) for South Asia Regional Department.
A single interconnected power market is a clear win for the South Asia Subregional Economic Cooperation (SASEC) countries as the power systems of all countries would be integrated through adequate cross border transmission capacity to share power with each other, he said.
“Under this arrangement, smaller countries like Nepal and Sri Lanka would rely on market to provide reserve generation capacity, lowering their own investment costs, while fossil fuel-based generation in Bangladesh and India would be replaced with cleaner hydropower from Bhutan and Nepal.”
Besides, given the different times of peak power demands of neighbouring national grids, one grid doesn’t need to generate all its power to meet peak demand, it can instead buy from another grid for partial requirements, and vice versa, Wijayatunga wrote.
This “resulting diversity” reduces overall investment needs in national energy generation plans, he said.