The energy that South Asia needs

Not many people paid attention when, on a humid June morning, 40MW of electricity began making its way from the rivers in central Nepal to the grids of northern Bangladesh.

- MD IBRAHIM KHALILULLAH

There was no grand summit, but make no mistake: this unassuming cross-border trade could be the opening act of something far more ambitious, possibly even transformational.

The idea is simple on paper. Nepal, long known for its snow-fed rivers and hydro potential, now finds itself in a position to export power. Bangladesh, in need of diversifying its energy sources and weaning off an overdependence on fossil fuels, has emerged as a willing buyer. India, which sits geographically between them, agreed to let the current pass through its territory.

The wires, in a very literal sense, are now connected. Electricity started flowing on 15 June 2025, under a deal signed eight months ago. And with that, South Asia saw the first instance of a functioning, trilateral power trade arrangement.

40MW will not rewrite anyone's energy future overnight. But that's not the point. This moment isn't about the size of the deal; it's about its structure, its precedent, and the quiet tectonic shift it represents in how the region could approach energy cooperation going forward.

For decades, South Asia has struggled to build the kind of shared infrastructure that's taken for granted in other parts of the world. Energy, in particular, has remained largely siloed within national borders, even though the logic for integration has always been relevant.

The geography alone suggests potential: Hydropower-rich nations like Nepal and Bhutan upstream, densely populated and energy-hungry economies like India and Bangladesh downstream. But until now, politics, red tape, and mistrust have kept those connections mostly theoretical.