Realizing the ever increasing demand of electricity for socio-economic development and progress of the country, the government has initiated sub-regional cooperation in the field of power generation, grid connectivity and overall energy security. Cooperation has been initiated through SAARC, SASEC and BIMSTEC etc. for sharing of hydropower through cross-border connectivity and capacity development. Through these cooperation efforts Bhutan's and Nepal's hydro power potential could be utilized for the sub-region. Sub-regional grid could enable flow of surplus electricity within the countries and minimize the demand-supply gap of electricity of the nations.

A historical bilateral tie took place in January 2010 where the Hon'ble Prime Ministers of Bangladesh and India agreed on a major cooperation between the two neighboring countries. This initiative highlighted the development of economic cooperation between the countries.

Bangladesh- India Cooperation in Power Sector

The Bangladesh-India cooperation formally initiated in November 2009 followed by a visit of high level Bangladesh delegation led by the Secretary, Power Division, Ministry of Power, Energy & Mineral Resources, during 18-22 November 2009. The MOU was signed between the two nations on 11th January 2010 during the visit of the Prime Minister, Government of the People's Republic of Bangladesh. Under the MOU the salient features of the cooperation on power sector between the two countries were:

• Exchange of power through Grid connectivity between the two countries
• Joint venture (JV) investment in power generation
• Capacity development of BPDB

The MOU also stated that a Joint Steering Committee (JSC) co-chaired by both the power secretaries and a Joint Working Group (JWG) would be constituted to promote and facilitate the cooperation. The JWG would meet at least twice a year while the JSC would meet at least once a year to review the progress.

The first meeting of the JWG was held in Dhaka on 18 February 2010, while the second meeting of the JSC was held in Dhaka on 19 February 2010. The JSC agreed that the next meeting of JWG and JSC would be held in May/June 2010 in India.

The first activity identified the establishment of a grid connectivity that would allow power trading between the two countries. Based on detailed techno-economic analysis under taken by a joint technical team, it was agreed that the most effective option would be to set up an interconnection between Bheramara in Bangladesh and Baharampur in India. Scope of the project included a 400 KV, 30 Km double circuit line from Bheramara to Baharampur and the establishment of a 500 MW 400/230 KV back-to-back high voltage direct current (HVDC) substation at Bheramara. In proposed Bheramara HVDC center, existing in Ishardi-Khulna (South) 230 KV double circuit transmission line was designed loop in-loop out 5km. The transmission line was designed for an ultimate power flow of 1000 MW. ADB is financing the project from Bangladesh side.

Cooperation with other neighboring countries

Energy trade including electricity trade with neighbors has tremendous potential for unlocking Bangladesh's long-term energy constraints in a cost-effective manner. It is very encouraging for the country people that necessary steps have already been made to initiate power trade with India.

In the short to medium term 500 MW of power flow through Bheramera-Baharampur grid connectivity has been already envisaged. This cross-border trading with India opens up possibility for power trading with Nepal and Bhutan as well. A negotiation for power trading with Mayanmar is also going on. Under this process 500 MW hydro power will be traded by 2017 from Myanmar.