South Asian nations face a stark energy security dilemma: If they do not expand their energy supply capacities to meet growing demand, they remain static and undeveloped. On the other hand, if they accelerate economic development, they exacerbate their energy supply crunch. Given this dilemma, the only long-term solution is the sustained increase in regional energy cooperation.
Regional and sub-regional institutional mechanisms such as South Asian Association for Regional Cooperation (SAARC), Bay of the Bengal Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and Bangladesh, Bhutan, India, Nepal (BBIN) initiative have been pivotal in nurturing inter-country relationships and regional cooperation in South Asia. Energy, being a key driver of socio-economic growth, has been at the core of such regional cooperation.
Paper Release on ‘Prospects of Regional Energy Cooperation and Cross border Energy Trade’ at BIMSTEC conference
One of the objectives of Asia EDGE in South Asia is to create an enabling environment to support the establishment and promotion of South Asian energy markets, and gain consensus and support from the key decision makers and stakeholders on enhanced energy cooperation and trade. In order to further the energy cooperation between countries, especially at the policy level, USAID has conceptualized creation of a Regional Parliamentary Forum on Energy cooperation and Energy Trade in South Asia. The high-level forum of Parliamentarians of South Asian Countries (focusing on Bangladesh, Bhutan, India, Nepal, Sri Lanka) are expected to discuss, deliberate, share knowledge for advancing energy cooperation and energy trade in South Asia, for a better and prosperous South Asian region.
In this regard, USAID through its South Asia Regional Initiative for Energy Integration (SARI/EI) program is currently supporting the development of a white paper on “Regional Parliamentary Forum on Energy Cooperation and Energy Trade in South Asia”.