Cross-border electric interconnections among South Asian countries present a potent opportunity, given the proximity of the transmission networks, the significant diversity in natural resources, and demand variation across the region. The power systems of Bhutan, Nepal and Bangladesh are already connected to India. Interconnections also provide a cost-effective way of enhancing the reliability of all sub-systems, and delaying or reducing, the long term need for capacity to maintain the reliability standard for individual sub-systems. Even if all sub-systems (individual nations) suffer from power shortages, there are still opportunities to trade electricity as it provides appropriate signals for more economic utilization of existing capacities and utilize change in consumption behavior to suit the market conditions. Differences in daily load conditions and seasonal variation in load as well as generation provide ample opportunities for the South Asians nations to optimize the use of regional resources even in the current circumstances. Technical and operational benefits arise out of the opportunities to optimally plan, implement, and operate the available/new generation and transmission capacity.