By Sushil Sharma in Kathmandu

Delegates from South Asia have joined representatives from the United States to explore the possibility of greater investment in power and energy in the region.

The supply of energy in the region falls far short of demand, and many experts say development of the sector has been hampered by a lack of money and technology.

The United States government has organised a two-day conference in the Nepalese capital, Kathmandu, ahead of President Bill Clinton's South Asian tour later this month.

US Deputy Secretary for Energy, TJ Glauthier, said American investors were keen to discuss the possibility of being involved in a range of energy projects across South Asia.

Delegates from the host country, Nepal, joined representatives from India, Pakistan, Bangladesh, Sri Lanka, Bhutan and the Maldives, as well as American investors to discuss more than 30 specific projects.

The projects, which are estimated to cost more than $10bn, cover areas such as oil, gas, coal mining and hydro-electric power.

High demand

Experts say South Asia has enormous potential to develop its energy sectors, and also has a huge market.

With one-fifth of the world�s population, South Asia accounts for nearly 4% of the world's energy consumption.

And many experts say the demand for energy in the region will treble in the next 10 years.

But the supply of energy falls far short of demand, and many experts say outside investment will provide the necessary boost to the region's energy sectors.

A number of power projects are already under construction in the region, with the help of American investment, but officials say these latest projects would represent a significant increase in South Asia's energy capacity.