South Asia has witnessed a growing imbalance between energy demand and its supply from indigenous sources resulting in increased import dependence. No South Asian country is going to be able to meet its energy needs entirely from within its own domestic resources. Therefore, greater cooperation within South Asia could be one of the most effective ways to deal with regional energy deficit and ensure energy security of the region.
India’s neighbours have huge potential in hydroelectricity, and co-operation among nations to tap the energy resource can be a win-win situation for all. The governments of the region need to take an active role in developing strategic cooperation for optimum exploitation and sharing of energy resources Hydro power potential is one of the largest energy resources in the region.
Energy endowments differ among the South Asian countries, and the countries in the region could benefit significantly by strengthening mechanism of energy trade through improved connectivity. Only India, Bhutan, and Nepal currently trade electricity. The national energy systems—gas and electricity networks—in the South Asian countries are largely isolated from each other. There are no gas pipelines crossing the national borders, whether within South Asia or between South Asia and its neighbours. Consequently, optimal development of the region's internal energy resources is hampered and access to the significant energy resources in the neighboring countries is denied, which increases the cost of energy supply and reduces energy security of the individual countries and of the region as a whole.
Key solutions to these problems involve fostering cross border energy investments and promotion of regional energy trade in order to take full advantage of the energy resources available within the region and its neighborhood.
Therefore it is essential to create significant opportunities for cooperation and trade in the energy sector and eventually for creating one of the world's largest integrated energy market.
It is in this background that CII has done a study on “South Asia Energy Cooperation and Business Opportunities in Power Sector”. CII has come out with some comprehensive recommendations in this study towards enhancing South Asia energy cooperation and thereby promoting business opportunities in the Power sector.