Jul 09, Kathmandu - The European Union (EU) has initiated a new project worth 5 million Euros to bolster regional energy connectivity in South Asia. The four-year "Energy Connectivity in South Asia" initiative aims to expand cross-border electricity trade among Bangladesh, Bhutan, India, Nepal, and Sri Lanka, promoting clean, reliable, and affordable power supply.

The formal launch ceremony was held in Kathmandu, attended by EU representatives, government officials from participating countries, energy experts, development partners, and investors. Funded under the EU’s Global Gateway strategy, the project will be implemented by Expertise France.

EU’s International Partnerships Commissioner, Joseph Sikkel, emphasized that regional energy cooperation will ensure cheaper, cleaner, and more reliable electricity, significantly contributing to energy security, economic growth, and job creation in South Asia. He expressed confidence that the project will further strengthen EU-South Asia partnerships.

European Union Ambassador to Nepal, Veronique Lorenzo, highlighted that Europe’s experience in building integrated electricity markets has made energy systems more sustainable, affordable, and resilient. She reaffirmed the EU’s commitment to expanding regional cooperation in South Asia.

Energy, Water Resources, and Irrigation Minister Viraj Bhakta Shrestha, pointed out the abundant renewable energy sources and rising power demand in South Asia. He stated that cross-border electricity trade is vital for energy security, sustainability, and economic development, and welcomed regional initiatives to deepen energy cooperation.

Nicolas Schene, Director of Sustainable Development at Expertise France, noted that the project will facilitate knowledge exchange, capacity building, and technical cooperation among participating countries. He added that sharing experiences between Europe and South Asia will lay a practical foundation for creating a more integrated regional electricity market.

During the event, presentations covered Europe’s experience in energy interconnection, regulatory frameworks, regional electricity market development, and cross-border trade opportunities. Discussions also focused on policy and regulatory reforms, investment expansion, renewable energy integration, and regional energy security.

The project aims to strengthen regional policy dialogue, support technical studies and capacity development, attract investments, and promote cross-border electricity trade. It is expected to increase renewable energy utilization in South Asia, reduce greenhouse gas emissions, and enhance energy security.