Electricity Cooperation in South Asia: Barriers to Cross-Border Trade

Energy Policy Volume 120, September 2018, Pages 741-748 DOI:10.1016/j.enpol.2017.12.048

Posted: 27 Aug 2019

See all articles by Anoop Singh

Anoop Singh

Department of Industrial & Management Engineering; Centre for Energy Regulation (CER) & Energy Analytics Lab (EAL)

Tooraj Jamasb

Durham Business School

Rabindra Nepal

University of Queensland - School of Economics

Michael Toman

World Bank - Development Research Group (DECRG)

Date Written: September 1, 2018

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.

Keywords: South Asia, Cross-border electricity trade, Power sector reform

JEL Classification: Q48, G18, N70, F13

Suggested Citation

Singh, Anoop and Jamasb, Tooraj and Nepal, Rabindra and Toman, Michael, Electricity Cooperation in South Asia: Barriers to Cross-Border Trade (September 1, 2018). Energy Policy Volume 120, September 2018, Pages 741-748 DOI:10.1016/j.enpol.2017.12.048, Available at SSRN: https://ssrn.com/abstract=3440497

Anoop Singh (Contact Author)

Department of Industrial & Management Engineering ( email )

Room No. 324
Indian Institute of Technology (IIT), Kanpur
Kanpur, Uttar Pradesh 208016
India

HOME PAGE: http://www.iitk.ac.in/ime/anoops/

Centre for Energy Regulation (CER) & Energy Analytics Lab (EAL) ( email )

Department of Industrial & Management Engineering
Indian Institute of Technology Kanpur
Kanpur, 208016
India
(+91) 512 2597679 (Phone)

HOME PAGE: http://cer.iitk.ac.in/

Tooraj Jamasb

Durham Business School ( email )

Mill Hill Lane
Durham, Durham DH1 3LB
United Kingdom

Rabindra Nepal

University of Queensland - School of Economics ( email )

Brisbane, QLD 4072
Australia

Michael Toman

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street N.W.
MSN3-311
Washington, DC 20433
United States

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