Regional electricity trade for hydropower development in South Asia

This study examines the importance of enhancing cross-border transmission interconnections and regional electricity trade to promote hydropower in the South Asia region and it quantifies the potential of hydropower development and trade under alternative scenarios. The paper shows that regional electricity trade is critical for the exploitation of the untapped hydropower resources in South Asia. It finds that hydropower capacity would increase by 2.7 times over the next two decades if a regional electricity market is developed. If a moderate carbon tax is added on top of it, hydropower capacity would be more than three times higher than the current level.

Automated summary

The study emphasizes the importance of regional electricity trade in developing the untapped hydropower resources in South Asia, showing that establishing a regional electricity market can significantly increase hydropower capacity. Furthermore, adding a moderate carbon tax can further promote hydropower development.