More recently, with rapid increases in power consumption and owing to geopolitical uncertainties associated with fossil-fuel and coal supplies, long distance transmission and cross-border trade in electricity have been on the rise.
Electric power is also increasingly being utilized as a currency to barter for other finished produce
Likewise, electricity, generated from hydro-electric projects located in Bhutan and exported to India, contributes a sizable portion of the Himalayan Kingdom′s government revenues,(Aiyar,2009). This paper develops model for trade in electricity and the consequent impact on the terms-of trade of the exporter nation.
Suggestions are put forth to help the power-exporter sustain a trade advantage.