The European Union has launched a €5 million, four-year project designed to support cross-border electricity trade and closer power-market links between Bangladesh, Bhutan, India, Nepal and Sri Lanka.
The initiative, called Energy Connectivity in South Asia (ECSA), was launched in Kathmandu on Wednesday with government representatives, regulators, investors and technical experts from the five participating countries, the EU’s delegation to Nepal announced on Thursday.
ECSA is funded by the EU and implemented by Expertise France, the organisation said. It is being presented under the EU’s Global Gateway investment strategy.
European Commissioner for International Partnerships Jozef Síkela said the EU was investing in “cheaper, cleaner, and more reliable electricity” through the project.
A regional power market refers to systems that allow electricity to be bought and sold across national borders using connected grids and agreed rules. The project is intended to support increased cross-border electricity trade and the integration of more renewable power into national systems, the EU said.
Launch event in Kathmandu
Véronique Lorenzo, the EU Ambassador to Nepal, said Europe’s experience of building an integrated electricity market showed that stronger energy connectivity could create more resilient and affordable energy systems.
Nepal’s Minister of Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, said South Asia had “vast renewable energy resources” alongside growing demand, and that enhanced cross-border electricity trade could improve electricity reliability and affordability.
Nicolas Chenet, Director of the Sustainable Development Department at Expertise France, said the project would be a platform for knowledge exchange, capacity building and technical cooperation between Europe and South Asia.
The five-country project seeks to contribute to increased regional electricity trade, improved energy security and greater integration of renewable energy resources across South Asia.
