According to the World Bank blog on 16 March 2017, Toman and Timilsina had estimated that between 2015 and 2040, the savings from regional South Asian electricity trade “facilitated by expanded cross-border transmission interconnections” would be as much as approximately $94 billion. Realizing such benefits require regional electricity markets that enable cross border trade.
A regional electricity market that had been governed by a transparent set of rules has been applied consistently across all participants. A regional Indian electricity market, on the other hand, is the expansion of the Indian electricity market to neighbouring countries where cross-border trade is dependent on the discretionary authority of Governments.
“Today, this misnomer between “regional electricity market” and “regional Indian electricity market” remains the single most important impediment to achieving genuine integration of power markets across the region. Indian electricity markets have become robust enough to integrate cross-border transactions. Governments must now step out of the way.
They must let power sectors from across the region integrate, collaborate, compete, and trade within an open market free from the risk of discretionary Government intervention.” (Source : financial express)
