Energy remains one of the key inputs to socio-economic progress in developing societies. South Asian nations, namely Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka, have so far lagged far behind their developed counterparts in terms of access to clean, reliable, and affordable energy, especially electricity. The existing power shortages and growing import of fossil fuels impose a heavy cost of energy insecurity to the region. The energy endowments of South Asia are limited and dispersed across the region, with large unexploited hydro-electric potential in some parts and growing dependence on fossil fuels in other parts. The South Asia region is going through a phase of economic transformation from low growth to high growth. It is well established that energy demand and growth are interlinked with each other; therefore energy demand in this region is going to increase substantially to keep its growth story intact. Cross-border electricity trade could emerge as a strong viable long-term solution to increase the supply of energy in the region. South Asia’s electricity security is one of the steps critical to regional stability.