Linking mainland electricity grids is a practical form of regionalism that benefits all parties. With rising populations and finite capabilities, the only way for all countries to move ahead may be for all to work as a single regional unit. How about beginning by creating a viable electricty grid?
Sixteen years after SAARC's establishment, though it has made some progress in the areas of a region al preferential trading agreement and a free trade area (SAPTA, SAFTA), nothing as yet has happened on the regional trading of electric power. The Declaration of the Tenth SAARC Summit at Colombo in July 1998, does mention the need to develop "specific projects relevant to the individual needs of three or more Member States under the provisions of Articles VII and X of the Charter." One should note that the mention of "three or more Member States" has a special significance to regional water resources development, and this could open up the avenues of power trading between India, Bangladesh, Nepal and Bhutan. As of now, power-trading is carried out purely on a bilateral basis, and that too is limited to India and Nepal, with Nepal importing about 200 million units in 2000-01, and India and Bhutan, with Bhutan exporting about 1300 to 1400 million units.
Present and Future Global Energy Scene
From the perspective of the world production of electricity, thermals shoulder a major burden of 63 percent (coal – 38 percent, gas — 15 percent and oil — 10 percent) with hydraulic and nuclear contributing 19 percent and 18 percent each, respectively. It is estimated that the world gross hydropower potential is 40,500 tera watt hours per year (TwH/year). Africa and Australia do not have large hydropower potential, whereas North America and Europe have already exploited over 70 percent of theirs; and while Asia has tapped only 20 percent of its hydro potential, South America has done better by tapping 32 percent. Though the global reserves of non-renewable energies (fossil and nuclear) are adequate for the next century, there are two major problems associated with their exploitation: a dramatic increase in greenhouse gas emissions, which could lead to climate changes with dire consequences on hydrological system and sea level rise; and the non-acceptability of nuclear power, particularly after the Long Island (US) and the Chernobyl (USSR) accidents. The 11 September attacks in the US reinforce the vulnerability of nuclear power stations, which were previously opposed only by the environmentalists.