Over the last two decades, South Asia (SA) has been one of the fastest growing regions in the world, with an average annual GDP growth rate of six percent. The region has a variety of energy resources with major potential for hydropower. This potential offers a huge scope for tapping clean energy and meeting South Asia’s energy needs. Yet, despite the potential and the macroeconomic growth in this region, the power sector has not been able to keep pace with the demand. The region continues to experience problems of shortage of electricity supply and its quality. Crossborder transmission interconnections and trading transactions are taking place to a limited extent. The systematic deployment of huge energy resource potential, especially hydropower, along with an investment in infrastructure build-up and a market-based trade system, can help harness untapped sources of clean energy. The paper aims to initiate thought-provoking discussions among power sector stakeholders and provide a platform for investors, developers, financial institutions, MDBs, and high-level officials from the South Asian countries to engage in a dialogue on challenges and investment opportunities in South Asia’s power sector and to enhance Cross-Border Electricity Trade (CBET).