AbstractThis article presents a comprehensive review on the contemporary condition of electrical energy in the SAARC countries with particular focus on conventional as well as renewable resources. The region lies at the center of the Asia with a dense population where demand and supply gap has always been a challenging factor for the governments. In addition, the region has observed enormous industrial growth during past two and half decades whose sustainability is totally dependent upon the continuous supply of energy. A bulk of valuable literature has been published in recent years that addresses the challenges, infrastructure improvements margins and several schemes to mitigate the energy deficiency in the region but most of it focuses upon either generation or transmission. This article covers this gap and presents to‐the‐point data that can be used for future forecasting, cross‐border trade possibilities and indigenous energy generation for remote and islanded regions within and across the SAARC mainland. A detailed review on electrical power generation potential by exploiting the renewable energy resources (RERs), generation capacity, installed capacity, energy short fall and transmission and distribution (T&D) losses is presented for each SAARC country and the results are presented in forms of tables and graphs. It can be inferred from the data presented in this paper that the energy crisis of the SAARC region can be overcome by mutual trade among the land‐connected countries by transporting the electrical energy, generated through RERs, across the borders. The paper concludes that the region has enormous potential for renewable energy available in form of hydal, solar, wind and biomass that, if maturely harnessed, can only not fulfil the local demands of the region but also be exported to establish the framework of cross‐border energy trade in future for sustainability of industrial and domestic utilization.