Prospects for Regional Cooperation on Cross-Border Electricity Trade in South Asia

Energy remains one of the key inputs to socio-economic progress in developing societies. South Asian nations, namely Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, have so far lagged far behind their developed counterparts in terms of access to clean, reliable, and affordable energy, especially electricity. The existing power shortages and growing import of fossil fuels impose a heavy cost of energy insecurity to the region. The energy endowments of South Asia are limited and dispersed across the region, with large unexploited hydro-electric potential in some parts and growing dependence on fossil fuels in other parts. Sections 1, 2, and 3 highlight the role of electricity in socio-economic development and energy security, and the need for electrifying millions of unlit homes and to meet the future demand for electricity