The European Union, together with partners, launched a €5 million energy connectivity project in South Asia on 9 July 2026, aiming to support a more connected regional power market delivering 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 an event in Kathmandu titled “Powering South Asia’s Energy Future: Advancing Cross-Border Electricity Trade, Investments and Energy Security.”
European Commissioner for International Partnerships Jozef Síkela stated that the initiative, part of the EU's Global Gateway investment strategy, invests in cheaper, cleaner, and more reliable electricity to strengthen resilience and unlock opportunities for communities and businesses in South Asia. 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, underscoring that enhanced cross-border electricity trade can help countries meet development goals while improving energy reliability, affordability, and sustainability.
The four-year regional program aims to support increased cross-border electricity trade (CBET), enable large-scale renewable integration, enhance energy security and economic resilience, and catalyse greater investment in renewable energy infrastructure, including from Europe. The launch event featured keynote presentations on European energy connectivity governance and panel discussions on enabling policy and regulatory environments and cross-border electricity trade investment opportunities. Participants agreed on priority areas including strengthening regional policy dialogue, supporting evidence-based planning, enhancing institutional capacities, facilitating investment discussions, and promoting knowledge exchange.
The ECSA project covers Bangladesh, Bhutan, India, Nepal, and Sri Lanka, seeking to increase regional electricity trade, reduce greenhouse gas emissions, improve energy security, and integrate renewable energy resources. The project can provide policy and regulatory expertise, capacity building, technical studies, modelling tools, investment roadmaps, and support for joint renewable energy projects and interconnection infrastructure. Global Gateway is the EU's strategy to mobilise up to €400 billion in investments from 2021 to 2027 for smart, clean, and secure connections in digital, energy, and transport sectors, as well as health, education, and research systems.