SAARC Framework Agreement for Energy Cooperation

SAARC Framework Agreement for Energy Cooperation was signed in 2014 and is considered to be major step towards a SAARC Market for Electricity (SAME). Its objective is to improve power availability in the entire region and facilitate integrated operation of the regional power grid.


This concept is there in minds of policy makers for many years, but so far little progress has been made. One reason is lack of political will, and frequent political tensions among the countries. However, the major issue is that when all SAARC countries are power deficient, how an interconnected power grid can be feasible. The countries actually are relying on tapping the untapped potential to realize such a grid. The idea is that if there is enough power generation, one region / country can fulfil demand of other country and prerequisite for that is a seamless SAARC power grid within the next few years. Secondly, SAARC countries are located in different time zones and peak demand in each of them occurs at different point of time. Thus, the seamless connectivity can also address issue of load shedding. Thirdly, Nepal has its annual peak {demand} in winter while India and other countries have the same in summer. If Nepal produces enough power, it can supply its surplus power to India and can import surplus power from India in winter. {Read this blog for details}