The European Union, together with partners, launched a €5 million energy connectivity project in South Asia on 10 July 2026, aiming to support a more connected regional power market that delivers affordable, clean and reliable electricity to Bangladesh, Bhutan, India, Nepal, and Sri Lanka. The Energy Connectivity in South Asia (ECSA) project, funded by the EU and implemented by Expertise France, was officially launched at a regional event in Kathmandu titled “Powering South Asia’s Energy Future: Advancing Cross-Border Electricity Trade, Investments and Energy Security.” The four-year initiative seeks to increase cross-border electricity trade, enable large-scale renewable integration, enhance energy security, and catalyse investment in renewable energy infrastructure, including from Europe.
European Commissioner for International Partnerships, Jozef Síkela, stated that the project is investing in cheaper, cleaner, and more reliable electricity to strengthen resilience and unlock opportunities for communities and businesses in South Asia, demonstrating a growing partnership between the EU and South Asian countries. High-level government representatives, development partners, energy sector leaders, regulators, investors, and technical experts from the five participating countries gathered for the launch. In her opening remarks, EU Ambassador to Nepal Véronique Lorenzo highlighted that Europe's experience in building an integrated electricity market has demonstrated that stronger energy connectivity creates more resilient, affordable, and sustainable energy systems. EU Ambassador to India and Bhutan Hervé Delphin noted that the initiative will help accelerate regional interconnection of power grids, unleashing benefits such as access to cheaper and greener energy, particularly integrating seasonal hydropower from the Himalayas with solar energy from the plains. Nepal's Minister of Energy, Water Resources and Irrigation, Biraj Bhakta Shrestha, welcomed the initiative and underscored the importance of regional collaboration to meet development goals while improving energy reliability, affordability, and sustainability.
The launch event included a keynote presentation on Europe's experience in energy connectivity, covering coordinated transmission planning, common regulatory frameworks, market coupling mechanisms, and institutional cooperation. Two panel discussions addressed enabling policy and regulatory environments, and cross-border electricity trade investment and energy security opportunities. Participants agreed on priority areas including strengthening regional policy dialogue, supporting evidence-based planning and technical studies, enhancing institutional and regulatory capacities, facilitating investment discussions, and promoting knowledge exchange. The ECSA project is part of the EU's Global Gateway investment 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.