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Electricity cooperation in South Asia: Barriers to cross-border trade

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  • Singh, Anoop
  • Jamasb, Tooraj
  • Nepal, Rabindra
  • Toman, Michael

Abstract

The South Asia Region (SAR) continues to face electricity shortages, underinvestment and challenges to improve energy access. Strengthening cooperation for cross-border electricity trade in South Asia makes it possible for the region to take advantage of significant benefits from greater regional coordination in capacity investments. Trade can complement domestic investment to increase the availability and reliability of supply, bringing economies of scale in investments and more cost-effective expansion of renewable electricity. Efforts to expand cross-border electricity cooperation and trade in SAR need to address not only regional barriers, but also barriers stemming from domestic electricity sector policies in the region. Expanding the scope of bilateral electricity cooperation in the short- and medium-term, and especially opening up to commercial as well as government-to-government projects, can build confidence in the process of cross-border trade and the potential benefits it can provide. The longer-term desirable goal is emergence of a well-functioning regional market for electricity, supported by a regional organization or forum for cross-country coordination.

Suggested Citation

  • Singh, Anoop & Jamasb, Tooraj & Nepal, Rabindra & Toman, Michael, 2018. "Electricity cooperation in South Asia: Barriers to cross-border trade," Energy Policy, Elsevier, vol. 120(C), pages 741-748.
    • Handle: RePEc:eee:enepol:v:120:y:2018:i:c:p:741-748
    DOI: 10.1016/j.enpol.2017.12.048
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    11. Haque, H.M. Enamul & Dhakal, Shobhakar & Mostafa, S.M.G., 2020. "An assessment of opportunities and challenges for cross-border electricity trade for Bangladesh using SWOT-AHP approach," Energy Policy, Elsevier, vol. 137(C).
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    15. Maryna Tverdostup & Tiiu Paas & Mariia Chebotareva, 2022. "What Can Support Cross-Border Cooperation in the Blue Economy? Lessons from Blue Sector Performance Analysis in Estonia and Finland," Sustainability, MDPI, vol. 14(3), pages 1-17, February.
    16. World Bank Group, "undated". "Africa's Pulse, No. 17, April 2018," World Bank Publications - Reports 29667, The World Bank Group.
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    20. Yue Pu & Yunting Li & Yingzi Wang, 2021. "Structure Characteristics and Influencing Factors of Cross-Border Electricity Trade: A Complex Network Perspective," Sustainability, MDPI, vol. 13(11), pages 1-25, May.

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    More about this item

    Keywords

    South Asia; Cross-border electricity trade; Power sector reform;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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