The European Union (EU) has launched a €5 million regional energy connectivity project aimed at strengthening cross-border electricity trade and promoting clean, affordable and reliable energy in Bangladesh, Bhutan, India, Nepal and Sri Lanka.

The Energy Connectivity in South Asia (ECSA) project was launched in Kathmandu, Nepal, on Thursday, with the participation of government representatives, energy sector leaders, regulators, development partners and technical experts from the five South Asian countries.

Funded by the EU and implemented by Expertise France, the four-year initiative will support regional cooperation in electricity trading, renewable energy integration, energy security and investment in power infrastructure. The project is part of the EU’s Global Gateway investment strategy, which seeks to enhance sustainable connectivity worldwide.

European Commissioner for International Partnerships Jozef Síkela said stronger energy connectivity would help deliver cheaper, cleaner and more reliable electricity while creating opportunities for communities and businesses in South Asia.

At the launch event, EU Ambassador to Nepal Véronique Lorenzo highlighted the importance of regional cooperation in addressing shared energy challenges, while Nepal’s Energy Minister Biraj Bhakta Shrestha stressed that enhanced cross-border electricity trade could improve energy reliability, affordability and sustainability in the region.

The ECSA project will provide policy and regulatory support, technical studies, capacity-building programmes, investment roadmaps and platforms for knowledge exchange to help develop a more integrated regional electricity market.

Through increased regional power trade and greater use of renewable energy resources, the initiative aims to improve energy security, reduce greenhouse gas emissions and promote economic growth across South Asia.