What is Middle-Income

Energy security and economic growth are interrelated. South Asia is at a critical juncture today. Development is the overriding priority for the region because of the high incidence of poverty, but energy is proving to be a critical constraint. The entire region is suffering from an acute energy crisis. Firstly, South Asian countries are confronted with the huge challenge of securing energy to sustain rapid economic growth and meeting the rising aspirations of the people. Secondly, the region is home to a huge population that lacks access to clean forms of energy. A large section of the population, particularly in rural areas lacks access to electricity and relies on the traditional use of biomass for cooking. With limited domestic energy sources, most South Asian countries are also highly dependent on energy imports, particularly crude oil, from other regions. Thirdly, on the issue of energy security SAARC, countries need to establish a platform of common interest. There are three objectives of this chapter: exploring new alternatives of energy sources of South Asian States, searching for relationship between energy security and economic growth, and re-thinking about an alternative policy options regarding energy security in South Asia.