The European Union has launched a €5 million regional energy connectivity project for South Asia, aiming to support cross-border electricity trade and renewable energy integration in Bangladesh, Bhutan, India, Nepal, and Sri Lanka. The Energy Connectivity in South Asia (ECSA) project, funded under the EU's Global Gateway investment strategy, was officially launched at an event in Kathmandu on 9 July 2026, attended by government representatives, development partners, and energy sector leaders from the five participating countries.
The four-year initiative, implemented by Expertise France, seeks to strengthen regional energy security, create jobs, and enhance economic growth by enabling a more connected power market that delivers affordable, clean, and reliable electricity. European Commissioner for International Partnerships Jozef Síkela stated that the project demonstrates the growing partnership between the EU and South Asian countries, investing in cheaper, cleaner, and more reliable electricity to strengthen resilience and unlock opportunities for communities and businesses.
At the launch event, EU Ambassador to Nepal Véronique Lorenzo highlighted Europe's experience in building an integrated electricity market, noting that stronger energy connectivity creates more resilient, affordable, and sustainable energy systems. Nepal's Minister of Energy, Water Resources and Irrigation Biraj Bhakta Shrestha welcomed the initiative, emphasising that enhanced cross-border electricity trade can help countries meet development goals while improving energy reliability, affordability, and sustainability.
The project will provide policy and regulatory expertise, capacity building, technical studies, modelling tools, investment roadmaps, and support for joint renewable energy projects and interconnection infrastructure. Participants at the launch agreed on priority areas including strengthening regional policy dialogue, supporting evidence-based planning, enhancing institutional and regulatory capacities, facilitating investment discussions, and promoting knowledge exchange on cross-border electricity trade and renewable energy integration.
The ECSA project is part of the EU's Global Gateway strategy, which aims to mobilise up to €400 billion in public and private investments from 2021 to 2027 to boost smart, clean, and secure connections in digital, energy, and transport sectors worldwide.