Barriers to Cross-border Energy Cooperation and Implications on Energy Security: An Indian Perspective with Reference to Energy Trade in South Asia

Abstract

Countries in the South Asian region suffer from energy deficits and energy security issues, and carry out limited cross-border energy trade. Regional cooperation has possibilities to exploit country-specific resource complementarities and demand characteristics. The study explores the role of regional cooperation in the primary energy and electricity sectors in enhancing energy security in the South Asian region with particular emphasis on an Indian perspective. The potential and possible areas of energy trade in the South Asian region have been highlighted along with the challenges to energy security that this region faces. The barriers to energy trade have been identified and linked to limited energy trade in the region. Questions around whether energy trade can mitigate energy security challenges faced by the region have been studied. The study concludes that cross-border energy trade has implications and benefits for enhancing energy security in the region.