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Energy Connectivity in South Asia

Energy Connectivity in South Asia was launched in Kathmandu on 9 July 2026. Representatives from the European Union, France, Bangladesh, Sri Lanka, Bhutan, Nepal, and India attended the launch event.

Group photo
© European Union, 2026

 

The “Energy Connectivity in South Asia” (ECSA) project is a €5 million, four year regional energy project covering five countries in South Asia -Bangladesh, Bhutan, India, Nepal and Sri Lanka (BBINS). It is funded by the European Union (EU) and implemented by Expertise France. In Europe,regional energy connectivity is an essential part of the green energy transition,allowing countries to balance supply and demand more effectively, mitigating risks associated with supply fluctuations. It leads to more accessible and affordable electricity, enhancing energy security and reducing reliance on import of fossil fuels.

Objective of the project:

Increasing Cross Border Electricity Trade (CBET) between the BBINS countries, thereby reducing GHG emissions, strengthening energy security and providing the flexibility required to integrate high shares of renewables (RE) in the energy mix, ultimately supporting economic growth and connectivity in South Asia.

What does the project have to offer?

Despite its vast potential, South Asia remains one of the least integrated energy markets. Expanding CBET in the region would enable large‑scale renewable integration, enhance energy security and economic resilience, and catalyse greater investment in renewable energy infrastructure.

The project complements the many ongoing initiatives of the South Asian countries to enhance energy connectivity in the region, adding the EU’s expertise in market coupling, renewable energy integration and regional energy market development,while tailoring these practices to South Asia’s unique opportunities and challenges.

Depending on the needs of the participating countries, the project can provide inter alia:

  • Policy and regulatory expertise, including from Europe
  • Capacity building / training and peer exchange programs
  • Technical studies, modelling tools, investment roadmaps
  • Regional and national events and workshops
  • Study tours
  • Identification and promotion of joint renewable energy projects and interconnection infrastructure

The project aims at sharing relevant EU experience from inter alia:

  • European Network of Transmission System Operators for Electricity (ENTSO-E), including practices for coordinating TSOs and DSOs,drafting network codes, cost-benefit analysis and market, network,interlinked methodologies for assessing grid development projects.
  • Agency for the Cooperation of Energy Regulators (ACER), including their experience in reviewing the implementation of EU-wide network development plans, decisions on cross-border issues,monitoring the functioning of the internal market including retail prices, network access for electricity produced from renewables.
  • Team Europe, including the European Investment Bank (EIB), Agence Française de Développement (AFD), Kreditanstalt für Wiederaufbau(KfW), including their experience in investments in renewable energyand grid infrastructure development.
  • European Energy Exchange (EEX), including their experience in incorporating robust mechanisms for secure data sharing,transparent pricing models, and user-friendly interfaces to support policymakers, regulators, and market participants in making data driven decisions.
  • Florence School of Regulation (FSR), including expertise on European regulatory practices.
  • Private sector actors, including technology providers, market operators, and energy trading firms.

Facts on the EU internal electricity market:

  • Coordinated by ENTSO-E, it brings together 40transmission system operators from 36countries, responsible for the coordinated operation and development of Europe’s electricity transmission system.
  • It is underpinned by common rules for cross border capacity allocation, congestion management, balancing and system operation,helping electricity flow across borders more efficiently and transparently under the oversight of ACER and national regulators.
  • Europe’s Single Day-Ahead Coupling creates a pan-European cross-zonal day-ahead electricity market, allocating scarce cross border transmission capacity through a common market-coupling process.

The project aims at also leveraging global experiences from other regional power markets such as the ASEAN Power Grid and build upon and complement regional and international efforts and initiatives supported by development partners and regional actors such as the Asian Development Bank (ADB), the World Bank, BIMSTEC and the International Solar Alliance (ISA).

Governance structure of the project

  • Project Steering Committee (PSC): ensures high-level oversight of the project and provides strategic direction and reviews the overall progress of the project.
  • Project Implementation Committee (PIC): ensures the operational and expert-level coordination required for the successful implementation project.