South Asia’s Integrated Grid and Clean Energy Transition
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On 15 June 2025, Nepal began exporting 40 megawatts (MW) of electricity to Bangladesh through India’s transmission network. The three countries had signed a trilateral agreement in October 2024 and ceremonially launched the partnership with token trading in November 2024. The June 2025 commencement established the framework for seasonal electricity flow from Nepal to Bangladesh via India for the next five years. For South Asia, where cross-border electricity trade (CBET) has been limited to bilateral arrangements, this marked a historic moment.
A regionally integrated grid in South Asia is both logical and necessary. It allows countries to leverage diverse energy resources and complementarities in demand. Nepal and Bhutan are rich in hydropower, while India and Sri Lanka have abundant renewable resources. The region holds over 350 gigawatts (GW) hydropower potential, 1,000 GW of solar, and 1,289 GW of wind potential. By interconnecting grids, countries can share these resources, balance supply and demand, and reduce the region’s carbon footprint.
Such integration directly supports national clean energy transition goals. For example, India views Nepal and Bhutan’s hydropower as a vital balancing resource to enable it to achieve its target of 500 GW of non-fossil energy by 2030. Similarly, Bangladesh will need to draw on hydropower from Bhutan and Nepal, as well as India’s renewable potential, to meet its target of 30 percent renewable energy by 2040.
Source: Wikipedia
