Kathmandu — A regional project worth €5 million has been launched with financial support from the European Union (EU) to promote cross-border electricity trade in South Asia. The four-year Energy Connectivity in South Asia (ECSA) project, implemented by Expertise France, brings together Nepal, India, Bangladesh, Bhutan, and Sri Lanka.
Speaking at the inauguration of the Energy Connectivity in South Asia event, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that cross-border energy connectivity is a high priority for Nepal. Noting that Nepal is already exporting electricity to Bangladesh through India’s transmission system, he said regional cooperation would help promote renewable energy and expand electricity trade.
The minister said Nepal has set a target of developing 28,500 MW of hydropower generation capacity by 2035 and is preparing to export the electricity generated to neighboring countries. He added that construction of 400 kV double-circuit transmission lines along the country’s border areas with India and China is progressing, and once these projects are completed, the scope of cross-border electricity trade will expand significantly.
The project’s primary objective is to expand cross-border electricity trade among participating countries, strengthen energy security, reduce greenhouse gas emissions, and increase the use of renewable energy. It is expected to promote the integration of South Asia’s energy market, enhance the reliability of electricity supply, and contribute to sustainable economic development across the region.
Under the project, support will be provided for energy policy and regulatory reforms, technical studies, capacity building, the preparation of investment roadmaps, regional workshops, and the development of renewable energy projects and cross-border transmission infrastructure. The project will also facilitate the sharing of European expertise in energy market management and electricity transmission system operation with South Asian countries.
EU Ambassador to Nepal Veronique Lorenzo said that Europe’s successful experience in cross-border energy connectivity could serve as a valuable model for South Asia. She emphasized that promoting clean energy is essential to addressing the challenges of climate change.
Sarita Dawadi, Secretary at the Ministry of Energy, Water Resources and Irrigation, said regional cooperation is essential to make cross-border electricity trade more systematic and seamless. Alberto Pototschnig, Executive Deputy Director of the Florence School of Regulation, said expanding cross-border electricity trade would create an enabling environment for participating countries to exchange electricity at affordable prices. Nicolas Chenet, Director of France’s Sustainable Development Department, said energy security has now become a global priority and stressed the need for regional cooperation to build clean and sustainable energy systems.
South Asia is still considered one of the least integrated energy markets in the world. It was announced that a Steering Committee will be established to provide strategic direction and oversight for the project, while an Implementation Committee will be formed to oversee implementation and technical coordination.
Kantipur