Energy cooperation in South Asia: prospects and challenges

Reliable energy supply is needed to alleviate poverty and achieve sustainable economic growth. This paper assesses the barriers to regional energy cooperation in South Asia Growth focusing particularly on Bangladesh, Bhutan, India and Nepal. The paper finds that the barriers to stronger regional energy cooperation and trade are economic, political and social in nature. In this respect, the lack of separation of economic and political interests has defined electricity as a strategic commodity, which placed it under the mercy of political instability and party politics. Nevertheless, the document notes that there have been several international good practices of energy cooperation, particularly in establishing regional power grids. In this sense, the author highlights that once the circumstances of political stability and commitment to cooperation are established, technical and commercial problems can be resolved.