- The European Union has launched a €5 million project to strengthen cross-border electricity trade and regional energy connectivity across Bangladesh, Bhutan, India, Nepal and Sri Lanka.
- The four-year initiative will support renewable energy integration, energy security, technical capacity, investment and the development of a more affordable and reliable regional power market.
High-level government officials, development partners, energy leaders, regulators, investors and technical experts from Bangladesh, Bhutan, India, Nepal and Sri Lanka gathered in Kathmandu for the launch of the Energy Connectivity in South Asia (ECSA) project, a €5 million European Union-funded initiative designed to strengthen regional electricity cooperation and cross-border power trade.
The four-year programme, implemented by Expertise France, will support greater cross-border electricity trade, large-scale renewable energy integration and investment in energy infrastructure. The initiative also aims to improve energy security, reduce greenhouse gas emissions and strengthen economic resilience across the region.
European Commissioner for International Partnerships, Jozef Síkela, said stronger energy connectivity could deliver cheaper, cleaner and more reliable electricity while creating new opportunities for communities and businesses.
“Energy connectivity powers our economies and daily lives,” Síkela said. “The European Union is investing in cheaper, cleaner, and more reliable electricity that will strengthen resilience and unlock many opportunities for communities and businesses in South Asia.”
EU Ambassador to Nepal, Véronique Lorenzo, said Europe’s experience with integrated electricity markets could provide useful lessons for South Asian countries.
“Europe’s experience in building an integrated electricity market has demonstrated that stronger energy connectivity creates more resilient, affordable, and sustainable energy systems,” Lorenzo said.
Nepal’s Minister of Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, welcomed the initiative and highlighted the region’s renewable energy potential and growing electricity demand.
“South Asia possesses vast renewable energy resources and growing electricity demand,” Shrestha said. “Enhanced cross-border electricity trade can help countries meet their development goals while improving energy reliability, affordability, and sustainability.”
The launch event, titled “Powering South Asia’s Energy Future: Advancing Cross-Border Electricity Trade, Investments and Energy Security,” examined how regional cooperation can expand electricity markets and attract investment in renewable energy and transmission infrastructure.
Nicolas Chenet, Director of Sustainable Development at Expertise France, said ECSA would create a platform for technical cooperation and knowledge sharing between European and South Asian stakeholders.
“ECSA will serve as a platform for knowledge exchange, capacity building, and collaborative problem-solving,” Chenet said.
The programme will draw on Europe’s experience with coordinated transmission planning, regulatory cooperation, market mechanisms and institutional coordination. Participants also examined how these approaches could support South Asia while adapting them to the region’s specific energy needs.
Meanwhile, discussions focused on strengthening policy and regulatory frameworks, harmonising technical and market standards, improving institutional capacity and coordinating national and regional energy initiatives.
A separate session examined investment and energy security opportunities from cross-border electricity trade. Participants identified predictable regulations, bankable projects and regional cooperation as key factors for attracting public and private investment in renewable energy generation, transmission networks and modern power systems.
Under the programme, ECSA can provide policy and regulatory expertise, training, technical studies, energy modelling tools, investment roadmaps, workshops and study tours. It can also help identify and promote joint renewable energy projects and electricity interconnection infrastructure.
The project covers Bangladesh, Bhutan, India, Nepal and Sri Lanka and forms part of the EU’s broader Global Gateway strategy, which seeks to strengthen sustainable connections in energy, digital and transport infrastructure while supporting investment in health, education and research.
The EU says the Global Gateway strategy aims to mobilise up to €400 billion in public and private investment between 2021 and 2027. Through ECSA, the bloc intends to deepen its partnership with South Asian countries while supporting cleaner energy systems, stronger regional markets and greater energy security.