Cross Border Energy Trade in South Asia: A Potential for Greater Regional Cooperation or an Impediment?

South Asia as a region shows great potential toward energy safety. Demand for electricity originating from the area is continuously increasing and the countries are producing electricity from fossil fuel based plant including other available resources posing threat to the environment. Countries like Bhutan, Nepal has huge hydro power potential. Through an assimilated market it is possible to capitalize those potential and produce electricity at lower cost by incurring lower impact on environment as well. So, if there is an integrated market for electricity trade within the region it can at least contribute to solve this issue to some extent. This paper focuses on the potential that how the cross border energy trade can allow countries to reduce their cost of production and help in plummeting the surging regional demand for it.