Discuss the current status of cross-border electricity trade in India. What are its advantages and significance?

Cross-border electricity exchange has been taking place on the Indian Energy Exchange, which has aided India’s aspirations to build a regional power system (IEX).

Cross Border Trade of Electricity:

• The CBET (Cross-Border Electricity Trade) Regulations were published by the Central Electricity Regulatory Commission in 2019 and the Central Electricity Authority published the CBET Rules in March 2021.
• The first nation to take advantage of buying power from a power exchange a day in advance is Nepal.
• India-Nepal: Since April 2021, Nepal has been trading in India’s day-ahead market to meet its demand during the dry season. Nepal Electricity Authority started selling surplus monsoon electricity through competition in the day-ahead market in June 2022. 
• India-Bhutan: Bhutan began trading on the Indian Day Ahead Market in January 2022, purchasing a maximum of 400 megawatts (MW) of power for import during the lean season.

Benefits:

• There are numerous advantages of an integrated electricity market.
• Improved access to and security of energy.
• Market for Integrated Power.
• Competitive electricity rates.
• Efficient and transparent power purchase.
• Resource management.

Way forward:

A South Asian power market will develop as more of India’s neighbours start taking part in CBET, allowing for a price discovery that will be specific for the area. The CBET will be advantageous to all participating nations and help the area expand economically and sustainably.