Role of Electricity Trade in South Asian Energy Security

Abstract

Energy is a building block of socioeconomic development. The role of energy consumption and trade is a considerable indicator of the economy. Most Asian countries have substantial dependencies on their energy requirements through imports in one form or another subjecting to import-dependent economies. On the other hand, many of these Asian countries due to their geographical advantages have enormous potential for energy export (especially electrical energy) and can place a better and more balanced sustainable economy. Countries like Bhutan and Nepal have options to explore more hydropower and contribute to the regional power grid. There is a need for exploring the potential of renewable energy, the sustainable harnessing of renewable energy, and meaningful trade between Asian Countries for a holistic development model in South Asian countries. There is a growing demand for electric energy in the region that has potential for renewable energy generation for meeting electricity demand in the region. This requires favorable policies and regulations, support, and bilateral commitments that will create win-win situations between South Asian countries for regional energy trade and energy security. Bhutan and Nepal are two critical countries in the region having promising potential for hydropower as clean energy for meeting domestic energy demand and promising export. The crucial development happening in the field of energy in the region mostly pertaining to energy trade and power security in the region should be materialized with systematic collaboration within the regions with supportive regulations resulting in better prospects for energy trade and power grid security of the region.