Title: Regional Power Cooperation and Trade- Lessons for South Asia

Author: Niru Yadav, Ramesh Ananda Vaidya, Nirjan Rai, Saumitra Neupane 

Year of Publication: 

Despite the region’s diverse energy resources, power cooperation and trade in South Asia has been limited to a few bilateral arrangements so far. Recent studies by the World Bank and USAID have analyzed opportunities for greater regional electricity trade, which this complementary report focuses on by drawing lessons from power pool experiences in other regions. The key prerequisites for successful regional power co-operation include building a foundation of bilateral trade arrangements, investing in cross-border transmission infrastructure, undertaking domestic power sector reforms, establishing regional institutions with authority to manage trade, and fostering political will and trust between countries. While some positive steps have been taken, such as India-Bangladesh and India-Nepal power agreements, realizing the full potential of a regional electricity market in South Asia will require concerted action on these fronts.