ABSTRACT
The energy profile of BIMSTEC countries is such that they are energy deficient and depend on imports of energy including electricity to meet domestic demand. One way to efficiently meet domestic energy demand is through energy trade in the region. For this, various initiatives, like the MoU for the establishment of BIMSTEC Grid Interconnection in 2018, have been undertaken to promote energy cooperation in the region. However, there is only limited evidence of regional energy trade among BIMSTEC countries, with the preferred mode being that of bilateral trade. In this context, the objective of this chapter is to identify the drivers of energy trade, explore opportunities and assess challenges to energy cooperation in BIMSTEC considering the economic, political and environmental dimensions holistically. Further, the status of existing energy trade, both bilateral and regional, is studied. The opportunities for energy trade are explored on the basis of existing bilateral energy trading arrangements, and the proposed initiatives under the aegis of BIMSTEC together with similar initiatives in the BBIN and ASEAN. The challenges to energy cooperation are analysed at both regional and national levels.
