KATHMANDU, JULY 10 The European Union has launched a €5 million regional project aimed at strengthening cross-border electricity trade among five South Asian countries, including Nepal, to enhance energy security, accelerate renewable energy integration and support sustainable economic growth. The Energy Connectivity in South Asia (ECSA) project will run for four years across Bangladesh, Bhutan, India, Nepal and Sri Lanka. Funded by the European Union and implemented by Expertise France, the initiative seeks to increase regional electricity trading while reducing greenhouse gas emissions and dependence on imported fossil fuels. The project comes as South Asia remains one of the world's least integrated regional electricity markets despite significant hydropower and renewable energy potential. The EU said greater regional power trade would improve electricity reliability, lower costs, strengthen energy security and attract investment in renewable energy infrastructure. Under the initiative, participating countries will receive policy and regulatory support, technical studies, capacity-building programmes, training, investment roadmaps, regional workshops and study visits. The project will also help identify and promote joint renewable energy projects and cross-border transmission infrastructure. Drawing on Europe's experience in developing an integrated electricity market, the project will share expertise from institutions including the European Network of Transmission System Operators for Electricity (ENTSO-E), the Agency for the Cooperation of Energy Regulators (ACER), the European Energy Exchange (EEX) and the Florence School of Regulation. The programme will also leverage international experience from regional power market initiatives such as the ASEAN Power Grid while complementing ongoing efforts by development partners including the Asian Development Bank, the World Bank, BIMSTEC and the International Solar Alliance. A Project Steering Committee will provide strategic oversight, while a Project Implementation Committee will coordinate technical execution across participating countries. For Nepal, the project will be coordinated by Shanker Khagi, Country Correspondent for Expertise France, in collaboration with the Delegation of the European Union to Nepal.