Proper terms needed for successful cross border trade: Energy adviser

Power, energy and mineral resources adviser Fouzul Kabir Khan has called for proper terms and conditions during negotiations for successful cross border trade between Bangladesh and its neighbouring countries.

The adviser made the call during an interview with Indian media outlet The Hindu Businessline, published today (1 January).

"Success of a cross-border trade largely depends on the terms decided. It is mostly good for the countries involved. We would like the cross-border trade to expand to Nepal, Bhutan, India and beyond," the adviser said.

"Countries and their political leaderships will realise that regional energy trade could be a win-win situation for all. This realisation will bring greater understanding as far as energy trade is concerned," the adviser added.

When asked whether the geopolitical issues will impact the recent tripartite agreement between Bangladesh, India and Nepal, Adviser Fouzul said he hoped the agreement will continue without any hassle.

"According to the agreement, Nepal will export its surplus electricity to Bangladesh via India from 15 June to 15 November every year. It will work only seven months annually, mostly during summer. I do not see any problem because we have had proper negotiations, which would ensure all the three countries involved benefit from the agreement. Besides, there is a room for further expanding it," the adviser said.

Regarding the future of a common electricity grid, the adviser said more time is needed before it becomes a reality.

"There are challenges such as putting up infrastructure like having an active energy exchange. India has a full-fledged power exchange, Bangladesh, for example, is yet to have one. There are market issues that will need to be addressed before energy exchanges are established. Besides, there are other technological issues as well," he said.

During the interview, the adviser was asked about the tariff issue, about which he said there is a constant need for reviewing the tariff.

"We should be continuously looking for reduction in tariff. One way to make cheap power available is to move towards solar energy, as the solar energy prices are coming down and also they are not sensitive to the volatility of the international fuel or gas prices," he added.

In response to a question about the investigations against Adani Power, the adviser noted that investigations are currently ongoing.

"As you are aware, our fiscal situation has improved and even our foreign currency reserves are better placed now. We are most likely to go for tariff renegotiations not only for imported supply but also for domestic supply. This would also help better manage our finances and stabilise the purchase price of electricity," Adviser Fouzul remarked.