EU launches €5 million South Asia energy connectivity project

KATHMANDU, July 10: The European Union (EU) has launched a €5 million regional energy connectivity project aimed at promoting cross-border electricity trade and strengthening regional power market integration across South Asia.

The four-year Energy Connectivity in South Asia (ECSA) project, funded by the EU and implemented by Expertise France, was launched in Kathmandu on Wednesday. The initiative covers Bangladesh, Bhutan, India, Nepal and Sri Lanka.

According to the EU, the project seeks to support a more connected regional electricity market by enhancing cross-border power trade, facilitating renewable energy integration, improving energy security and attracting investment in energy infrastructure.

European Commissioner for International Partnerships Jozef Síkela said the project would help deliver "cheaper, cleaner and more reliable electricity" while creating economic opportunities across the region under the EU's Global Gateway investment strategy.

Speaking at the launch, EU Ambassador to Nepal Véronique Lorenzo said Europe's experience in building an integrated electricity market had demonstrated the benefits of stronger regional energy connectivity and that the EU was committed to supporting South Asian countries in expanding clean energy cooperation.

Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha welcomed the initiative, saying enhanced cross-border electricity trade could help South Asian countries improve energy reliability, affordability and sustainability while advancing their development goals.

The launch event brought together government representatives, regulators, development partners, investors and energy experts from the five participating countries under the theme "Powering South Asia's Energy Future: Advancing Cross-Border Electricity Trade, Investments and Energy Security."

Discussions focused on strengthening regional policy and regulatory cooperation, harmonising technical and market frameworks, improving institutional capacity, promoting renewable energy investment and expanding cross-border electricity trade.

Participants also discussed lessons from Europe's integrated electricity market, including coordinated transmission planning, common regulatory frameworks and regional cooperation, and explored how those experiences could be adapted to South Asia.

The ECSA project aims to contribute to increased regional electricity trade, lower greenhouse gas emissions, improved energy security and greater integration of renewable energy resources across South Asia. It will provide participating countries with policy and regulatory support, technical studies, capacity-building programmes, investment roadmaps and knowledge-sharing activities, according to the EU.