The European Union (EU) on Thursday launched a new regional energy connectivity project in South Asia to support a more connected power market, delivering affordable, clean, and reliable electricity to people in Bangladesh, Bhutan, India, Nepal, and Sri Lanka.
The €5 million EU-funded initiative, titled the Energy Connectivity in South Asia (ECSA) project, is designed to strengthen energy security, create jobs, and enhance economic growth across the region.
The four-year programme aligns with the EU’s Global Gateway investment strategy, which seeks to boost smart, clean, and secure connections in the energy, digital, and transport sectors.
The project was officially unveiled in Kathmandu during an event titled “Powering South Asia’s Energy Future: Advancing Cross-Border Electricity Trade, Investments and Energy Security.”
Implemented by Expertise France, ECSA aims to increase cross-border electricity trade (CBET), enable large-scale renewable integration, and catalyse greater investment in renewable energy infrastructure.
Speaking at the launch, European Commissioner for International Partnerships, Jozef Síkela, said the project represents a growing partnership between the EU and South Asian nations.
“With the launch of this Global Gateway flagship, the European Union is investing in cheaper, cleaner, and more reliable electricity that will strengthen resilience and unlock many opportunities for communities and businesses in South Asia,” he stated.
Chief Guest Biraj Bhakta Shrestha, Nepal’s minister of energy, water resources and irrigation, welcomed the initiative, noting that South Asia possesses vast renewable energy resources. He highlighted that enhanced cross-border trade would help countries meet development goals while improving energy sustainability.
Véronique Lorenzo, ambassador of the European Union to Nepal, drew on Europe’s experience in building integrated electricity markets. She noted that stronger connectivity creates more resilient and sustainable energy systems, helping to unlock the benefits of regional cooperation.
The project will serve as a platform for knowledge exchange and technical cooperation.
According to Nicolas Chenet, director of the Sustainable Development Department at Expertise France, ECSA will provide policy and regulatory expertise, capacity building, technical studies, and modelling tools to participating countries.
During the event, participants discussed lessons from European energy governance, including transparent market rules and regional planning. Two panel discussions further explored how the project can complement ongoing initiatives and stimulate investments in transmission infrastructure and modern power systems.
The ECSA project seeks to reduce greenhouse gas emissions and improve energy security by promoting joint renewable energy projects and interconnection infrastructure across the five participating nations.
This initiative is part of the broader Global Gateway strategy, which aims to mobilise up to €400 billion in public and private investments globally between 2021 and 2027.
