ABSTRACT

This thesis explores the potential benefits of Cross-Border Electricity Trade (CBET) between India and Pakistan with particular reference to savings in energy costs, improvements in balance of payments, cuts in emissions, and enhanced energy security. The study’s primary objective is to develop a CBET framework that can harness regional energy integration to deal with emerging power needs and promote sustainable development.

A mixed-method approach is utilized for this study, whereby quantitative data analysis is combined with a qualitative review of the existing legal/regulatory framework. Various scenarios are simulated under competitive advantage theory to assess their economic, environmental, and security impacts on electricity trade between India and Pakistan. Sources of information include historical electricity demand and supply statistics, policy papers, and various local & international publications.

Findings show that CBET can reduce electricity generation costs significantly by optimizing resource allocation and taking advantage of variations in peak demand times. The No Trade Barriers Scenario reduces costs by 561 billion Rs., while the Existing Policy Scenario reduces it by only 212 billion Rs. Moreover, the study reveals the potential to enhance economic security and environmental sustainability by improving the balance of payments and developing a more resilient grid capable of withstanding local supply disruptions under CBET.

The study also addressed the regulatory and institutional barriers hindering CBET, providing a clear pathway for policy interventions and private sector engagement. Establishing crossborder grids with efficient electricity exchange mechanisms capable of reducing local supply disruptions is essential for maintaining energy security.

In conclusion, this analysis highlights the importance of CBET in economic, environmental, and energy objectives. The countries can realize notable economic and environmental benefits from adopting this framework and promoting regional cooperation. The results offer insightful recommendations for policymakers, industry stakeholders committed to sustainable development beyond borders as well as other organizations concerned.