The distribution segment is the most critical yet the weakest link of South Asia's power sector. Despite significant progress in generation capacity and regional transmission interconnections, the distribution networks across the region continue to face persistent challenges that undermine the reliability, quality, and financial sustainability of electricity supply in the region.

Across South Asian countries, distribution systems continue to face issues with outdated infrastructure, high technical and commercial losses, inadequate cost recovery, poor service quality in underserved areas, and increasing pressure from emerging demands such as distributed solar, electric vehicle charging. These issues are further exacerbated by nature related disruptions, rapid urbanization which causes difficulties in expanding and augmenting the distribution systems.

Financing the upgrade and expansion of distribution systems also remains a challenge, with utilities in South Asia struggling to mobilize the required capital due to poor creditworthiness and limited revenue base. Given that many of these challenges are shared across countries in South Asia, there is an urgent need for regional dialogue and peer learning.

This session aims to reflect on: how to mobilize massive financing needed for distribution systems enhancement in the region, whether harmonization of distribution codes or standards can accelerate regional cooperation and utility performance, and how to anticipate and respond to emerging technical and operational challenges affecting the distribution segment.