Technical Report

Bridging Continents: European CBET Insights for South Asia’s Energy Future

21 October 2024

Bridging Continents: European CBET Insights for South Asia’s Energy Future” explores the significant role of Cross-Border Electricity Trade (CBET) in enhancing energy security and sustainability in South Asia. As countries transition to cleaner energy sources, CBET facilitates the sharing of renewable resources, allowing nations to balance supply and demand more effectively. Drawing parallels from the European Union’s successful CBET model, the report outlines how coordinated policies and regulations can facilitate seamless electricity trade among South Asian nations. The EU’s experience demonstrates the effectiveness of a unified approach in enhancing energy security and market efficiency through interconnected systems.

The report highlights the significant potential for CBET growth in South Asia, particularly among countries like Bangladesh, Bhutan, India, Nepal, and Sri Lanka. Recent developments in transmission infrastructure, such as Nepal’s upgraded lines and new high-capacity interconnections between India and its neighbours, illustrate the region’s commitment to enhancing connectivity. These initiatives aim to optimise resource utilisation and improve energy accessibility while addressing challenges like regulatory frameworks and financing constraints. The report underscores the need for robust cooperation among governmental bodies and private sector players to foster a thriving cross-border electricity marketplace.

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