Enhancing South Asia Power Trading

Abstract

South Asia has witnessed a growing imbalance between energy demand and its supply from indigenous sources resulting in increased import dependence. No South Asian country is going to be able to meet its energy needs entirely from within its own domestic resources. Energy endowments differ among the South Asian countries, and the countries in the region could benefit significantly by strengthening mechanism of energy trade through improved connectivity. Therefore, greater cooperation within South Asia could be one of the most effective ways to deal with this regional energy deficit and ensure energy security of the region. However, there are many issues which hamper power trading in this region. The governments of the region would thus need to take an active role in fostering cross-border energy investments and promotion of regional energy trade in order to take full advantage of the energy resources available within the region and its neighbourhood.