The South Asia Forum for Infrastructure Regulation (SAFIR) is set to commission a comprehensive study on cross-border electricity transmission across South Asia, with the aim of strengthening grid connectivity, integrating renewable energy, and advancing a more competitive regional power market. The study will cover India, Nepal, Bhutan, Bangladesh, and Sri Lanka.

What the Study Will Cover

According to the Terms of Reference (ToR) published by SAFIR, the study — formally titled 'Cross-Border Transmission' — was initiated by the forum's Executive Committee in view of the urgent need to ensure energy sufficiency and make cross-border electricity trade a success across the region. The forum has invited consultant applications, with the submission deadline having passed on Friday, 18 September. The selected consultant will be required to complete the study within 120 days of signing the agreement.

The study will assess the capacity, technology, operational performance, and bottlenecks of existing transmission links. It will also examine grid integration challenges such as scheduling, dispatch, and frequency control, while mapping electricity demand alongside generation resources — including hydropower, solar, wind, and thermal — to identify potential complementarities among the five member countries.

New Corridors, Investment Needs and a Subsea Link

Among the more ambitious components of the study is an assessment of new transmission corridors and expansion opportunities, as well as the feasibility of a regional transmission master plan. Notably, this includes a potential India-Sri Lanka subsea electricity link — a proposal that has been discussed for years but not yet formally progressed. The scope also covers investment and financing requirements for upgrades across the network.

The study will further examine regional power market models and institutional mechanisms, including competitive power exchanges, electricity scheduling, settlement procedures, and dispute resolution frameworks. It will look at the economic and strategic benefits of regional trade — including energy security gains, renewable integration, and emissions reduction — alongside regulatory, financial, technical, and geopolitical risks.

Why South Asia Needs Regional Power Integration

South Asia's energy resources are significant but unevenly distributed. Nepal and Bhutan hold substantial hydropower potential, while India and Bangladesh have sizeable coal-based generation capacity alongside rapidly growing renewable portfolios. Electricity demand is rising steeply across the subcontinent, creating both pressure and opportunity.

According to the ToR, cross-border electricity trade has emerged as a practical means of making better use of regional resources, improving grid reliability, and deepening regional cooperation. Critics and energy analysts have long argued, however, that regulatory fragmentation and geopolitical sensitivities have slowed integration despite the clear economic logic.

About SAFIR

Established in 1999 and headquartered in New Delhi, SAFIR is a regional forum of infrastructure regulators and related institutions in South Asia. Its Executive Committee includes representatives from India, Bangladesh, Bhutan, Nepal, and Sri Lanka. The forum focuses on capacity building, training, and research related to infrastructure regulation.

The study's findings are expected to propose short-, medium-, and long-term measures for harmonising regulatory frameworks and facilitating greater regional electricity integration — a blueprint that, if acted upon, could reshape energy flows across one of the world's most populous regions.