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 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 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 economic resilience, and catalyse investment in renewable energy infrastructure, including from Europe.
European Commissioner for International Partnerships Jozef Síkela stated that the EU is investing in cheaper, cleaner, and more reliable electricity to strengthen resilience and unlock opportunities for communities and businesses in South Asia. 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 Europe's experience in building an integrated electricity market as a model for creating resilient, affordable, and sustainable energy systems. EU Ambassador to India and Bhutan Hervé Delphin noted that the initiative will accelerate regional interconnection of power grids, enabling access to cheaper and greener energy, particularly integrating seasonal hydropower from the Himalayas with solar energy from the plains.
Chief Guest Biraj Bhakta Shrestha, Nepal's Minister of Energy, Water Resources and Irrigation, welcomed the initiative and underscored the importance of regional collaboration for meeting development goals while improving energy reliability, affordability, and sustainability. Nicolas Chenet, Director of Sustainable Development Department at Expertise France, noted the project's role in fostering dialogue and technical cooperation by supporting stakeholder engagement among participating countries. The event included a keynote presentation on European energy connectivity governance and two panel discussions: one on enabling policy and regulatory environments, and another on cross-border electricity trade investment and energy security 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 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 globally. The project covers Bangladesh, Bhutan, India, Nepal, and Sri Lanka and seeks to contribute to increasing regional electricity trade, reducing greenhouse gas emissions, improving energy security, and greater integration of renewable energy resources across South Asia.