MoU approved to optimize regional energy resources

India has approved the “Memorandum of Understanding” for Establishment of the BIMSTEC Grid Interconnection across South Asia and South East Asia.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia viz. Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.

This MoU will provide a broad framework for the Parties 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.

This MoU will facilitate:

(i) the optimization of using the energy resources in the region for mutual benefits on non-discriminatory basis subject to laws, rules and regulations of the respective Parties;

(ii) the promotion of efficient, economic, and secure operation of power system needed through the development of regional electricity networks;

(iii) the necessity of optimization of capital investment for generation capacity addition across the region; and

(iv) power exchange through cross border interconnections. fii-news.com