India's 'Power' Diplomacy To Counter China's Influence In Southeast Asia

India is reportedly exploring the possibility of trading power with Southeast Asian countries through Myanmar and Thailand.

This move aims to leverage India's increasing renewable energy capacity to enhance regional diplomatic relations.

The establishment of grid linkages for this power trading initiative is expected to take a minimum of four years, Reuters reported citing an industry official.

This development follows India's ongoing efforts to commence power trading with countries in the Middle East, such as the United Arab Emirates.

In an attempt to counter China's growing influence in the region, Modi government has been actively promoting closer political and economic ties with neighbouring countries.

Indian energy officials are currently engaged in discussions with various countries at the Group of 20 (G20) ministerial meetings in Goa.

These discussions are reportedly focused on advancing regional power grid interconnections.

The support of G20 members is considered crucial in gaining the backing of bankers and developers when making investment decisions.

To address key challenges such as pricing, India has enlisted the help of France's EDF.

EDF has reportedly been tasked with preparing a regulatory framework that will effectively tackle these challenges.

EDF is expected to complete the report by the end of this year, according to the industry official cited in the report.

Once India's national grid is connected to Burma (Myanmar), the grid in Burma can be strengthened and power can be transmitted to Thailand and other parts including Asia's east, the official said.

Cross-border grid linkages have attracted investment and government attention in various regions, including Europe and Southeast Asia.

However, the increasing cost of building subsea cables and the rising prices of raw materials required for grid upgrades, coupled with geopolitical tensions, have raised concerns about the viability of such projects.

The member of the Association of Southeast Asian Nations (ASEAN) has been striving to establish a regional grid for decades, aiming to facilitate multilateral power trade.

However, progress has been limited to bilateral agreements between individual countries, rather than achieving a comprehensive regional grid.

India has ambitious plans to expand its renewable and large-scale hydropower capacity to 500 gigawatts (GW) by 2030, compared to the current capacity of 177 GW. The development of solar parks is expected to contribute significantly to this increase in capacity.

According to the power ministry officials, efforts are being made to increase the availability of solar power throughout the day, which could help reduce dependence on fossil fuels.

One of the challenges faced in supplying power through an interconnected regional network is the transmission charges, according to another ministry official.

Interconnections would be both under the sea and on land, with integration of renewable energy boosted by pooling resources from across the region, the official added.

India currently exports a small amount of power to Bangladesh, Nepal, Bhutan, and Myanmar. However, under the new plan, this export will be significantly increased.