All PESD Publications Working Papers Energy and Economic Growth

Cross‐border electricity trade in the Bangladesh–Bhutan–India– Nepal (BBIN) Region: A cost-based market perspective

April 14, 2021
The rapid growth of electricity demand in developing nations, the availability of complementary generation resources, and the emergence of digital technologies have created increased opportunities for the international electricity trade. This paper proposes a framework for cross- border electricity trade (CBET) in the Bangladesh–Bhutan–India–Nepal (BBIN) Region that recognises the governance challenges associated with establishing an international electricity market. We explore the lessons for the BBIN Region derived from different types of CBET models. Specifically, existing markets in Northwest Europe, Latin America, and the United States provide insights into the development of our proposed cost-based CBET framework. We provide recommendations based on our proposed CBET framework to improve efficiency and increase the extent of electricity trade in the BBIN Region.