,India

Electricity trading opportunities open for India's grid vision

The country already has transmission lines with Nepal, Bhutan and Bangladesh.

If structured well, India’s One Sun One World One Grid (OSOWOG) vision could change the way electricity is traded between countries like any other commodity, according to a commentary from the Institute for Energy Economics and Financial Analysis.

With the country holding about 370GW of installed power generation capacity, the Indian grid was formerly divided into five regional grids. However, the country connected its southern network to form one large synchronous grid in 2014, providing a supply of electricity in deficit areas and reducing electricity costs driven up by transmission constraints.

The grid can now be expanded to other countries by building a system of interconnected renewable energy sources that can be easily shared. India is already trading power and has interconnected transmission lines with Nepal, Bhutan and Bangladesh.

“High-capacity transmission lines are being built to facilitate the trade of more power with these countries. Different countries are endowed with different natural resources and trading electricity has helped to bring down the cost of power and lightened the burden of importing fossil fuels,” IEEFA energy analyst Vibhuti Garg said.

OSOWOG can help countries make the best use of their divergent natural resources and take advantage of time differences to best use intermittent but low-cost solar and wind power generation, Garg said.

However, this cooperation will need market mechanisms sending price signals that justify the cost of establishing transmission infrastructure and renewable energy capacity. It would also help to provide grid stability and encourage the uptake of clean technologies.

“By promoting grid synchronisation and power markets that encourage infrastructure and capacity expansion, the OSOWOG initiative could help countries to achieve their emission reduction targets by tapering the use of fossil fuels and paving the way for more deflationary renewable energy, notwithstanding some initial geopolitical hiccups,” Garg added. 

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

An average of RMB5t a year is needed to decarbonise its economy.
It is expected to be higher than the overall level in Southeast Asia in 2030.
The only green parameter for credit rating is the RPO which carries “the least weight,” IEEFA says.
This will take effect on 11 November 2021.
Hai Long 2 and Hai Long 3 substations have a total capacity of over one gigawatt.
The MOU is effective for two years but it can be extended by the parties. 
Some 3 Mt of Australian thermal coal are awaiting clearance at Chinese ports.
This is whilst also ensuring the country’s resilience from climate risks. 
Producers are only meeting 60% to 65% of annual demand.
Financing needs to be scaled to drive India's rooftop solar potential, IEEFA argues.
This comes as the gov't issued the new draft of the Sixth Strategic Energy Plan.
Vietnam should craft incentives to carry out cost-competitive renewables, argues IEEFA.
It will likely grow, but not as rapidly as solar power.
This move is in line with China's carbon neutrality target before 2060.
Implementation challenges could lead to a loss of credibility for the bank.