The role of regional grid connectivity and cooperation for Decarbonisation: A case study of South and South East Asia

Abstract

As the share of renewable energy expands, cooperation at a wider level is required. In South Asia (SA) and Southeast Asia (SEA), cross-border power trade already exists. Both regions are moving toward high levels of integration. Sub-regional and interregional interconnections and regional cooperation can help reduce the use of fossil fuels and increase the absorption of renewable power in power systems. Using optimization models for the Bangladesh-Bhutan-India-Nepal (BBIN) countries, the article demonstrates significant CO2 savings (403 million tonnes) resulting from the renewable Energy (RE) potential of Bhutan, India, and Nepal, meeting the required electricity demand for GDP growth. In South Asia, each country can benefit from trading, meeting their demand, and decarbonizing at a lower cost. Similarly, the countries of the SEA region can also grow. By 2050, the power generation in the SA and SEA regions can reach 5880 and 5681 Terra-Watt-hours (TWh), respectively. Smaller countries with large potential for RE, such as Bhutan, Nepal, Laos, and Myanmar, can export electricity and grow economically as they cannot use that much for their needs. Regional grid connectivity can provide additional benefits due to further trade opportunities arising from differences in time, seasons, costs, prices, resource diversity, and availability.